Bata India
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Bata India's management is focused on a strategic shift towards premiumisation and operational efficiency, which is expected to enhance revenue growth and margins over the long term. The implementation of initiatives like Zero Base Merchandising (ZBM) and a new ERP system aims to improve inventory management and agility, crucial for navigating competitive pressures and rising input costs. Despite these positive developments, the company faces challenges from inflationary pressures and a cautious consumer sentiment, which could impact margins in the near term. Vista's financial outlook reflects stable revenue growth and improving margins, supported by the company's focus on premium products and digital expansion. The expected upside of approximately 21% aligns with the anticipated benefits from operational efficiencies and franchise expansion. However, the market should remain vigilant regarding potential headwinds from raw material costs and competitive intensity. Over the next 12-24 months, key opportunities include the successful rollout of a redesigned product funnel and continued growth in e-commerce, while watchpoints include the sustainability of demand recovery and the impact of inflation on consumer spending
Why We Like This Stock
- Management's focus on premiumisation and operational efficiency is expected to drive long-term revenue growth and margin improvement
- The implementation of Zero Base Merchandising and a new ERP system will enhance inventory management and agility
- The expansion of digital channels and franchise operations is set to capture a broader market share
Things To Watch Out For
- Rising raw material costs and inflationary pressures may constrain margins and impact profitability
- Intense competition in the retail sector could challenge market share and pricing power
- The sustainability of the current demand recovery remains uncertain, necessitating close monitoring
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 3,479 | 3,489 | 3,516 | 3,595 | 3,846 |
| Profit Before Tax (Cr.) | 394 | 306 | 231 | 290 | 312 |
| PBT Margin | 11.3% | 8.8% | 657.0% | 8.1% | 8.1% |
| Net Profit (Cr.) | 280 | 226 | 149 | 217 | 234 |
| Earnings Per Share | 21.8 | 17.6 | 11.6 | 16.9 | 18.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ► Hold | 755 | 17-Aug-2026 |
| Elara Capital | ► Accumulate | 781 | 04-Jun-2026 |
| IDBI Capital | ▲ Buy | 839 | 14-Aug-2026 |
| Motilal Oswal | ► Neutral | 645 | 14-Aug-2026 |
| Nuvama | ▼ Reduce | 598 | 14-Aug-2026 |
Company Overview
Show Company Profile
Bata India Limited manufactures, sells, and trades in footwear and accessories through its retail and wholesale network in India and internationally. It offers men's footwear, including casual shoes, slippers and flipflop, as well as ethnic, formals, loafers, sandals, sneakers, sports, and outdoor shoes; women's footwear, such as ballerinas, boots, casual, flats, flipflop, loafers, mule, sandals, sneakers, sports, thongs, and toe ring shoes, as well as heel footwears; kids' footwear; apparel, including joggers and bottoms, shorts, t-shirt, and Polos for men and women; and accessories, such as belts, handbags, laptop bags, belts, wallets, school bags, and other bags. The company also engages in property letting activities. It sells its products primarily under the Bata, Hush Puppies, Nine West, North Star, Power, Bata Red Label, Bata Comfit, Bubblegummers, Disney, Naturalizer, Marie Claire, Scholl, Floatz by Bata, Weinbrenner, and Bata Industrials brand names through retail and franchisee stores, a wholesale network, and e-commerce. The company was formerly known as Bata Shoe Company Private Limited and changed its name to Bata India Limited in 1973. Bata India Limited was incorporated in 1931 and is based in Gurugram, India. Bata India Limited is a subsidiary of Bata (BN) B.V.