Bata Q2 Results Review - Recovery Expected Ahead Of Festive Season; Maintain 'Accumulate': Dolat Capital

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Bata India Ltd.’s Q2 FY24 results came below our estimate. The company’s store network increased 10.0% YoY, but sales de-grew by 1.3% with low single digit same-store sales de-growth. On four-year basis, Relaxo Footwears Ltd. exhibited 3.6% growth while Bata registered 3.2% increase. The company has continued its sneakerization journey. In Q2 FY24 it has implemented sneaker studios across 612 stores. Sneakers growth is driven by strong growth in North Star brand. Bata continued with its retail expansion drive in tier 3-5 cities through franchise route. During the quarter, the company added 28 (net) new franchise stores, taking the franchise store count to 476.The company also scaled up its distribution business in multi brand outlets crossing 1,390 plus towns. Further, Bata initiated multiple new campaigns across Casual Style, Bata Red Label, Bata Pujo and Power Apparel. We have lowered our FY24/25E earnings per share estimates by 12.4/9.6% at Rs 29.3/34.1 to factor in Q2 performance and introduced FY26E EPS at Rs 39.0. Going ahead,favorable base, new advertising campaigns,continued E-com traction and ramp-up in store openings would be key triggers. Valuing at 44 times FY26E earnings per share arrived at target price of Rs 1,717. Maintain 'Accumulate'..Click on the attachment to read the full report:.Relaxo Footwears Q2 Results Review - Margins Would Take Time To Normalise; Downgrade To 'Sell': Dolat Capital.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bata Q2 Results Review - Recovery Expected Ahead Of Festive Season; Maintain 'Accumulate': Dolat Capital

During the quarter, the company added 28 (net) new franchise stores, taking the franchise store count to 476.

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