Fundamental Analysis

BATA INDIA LTD. 

Ticker : 500043 
BUY : Rs 1,668.00 
Target : Rs 1,850

Bata India Limited provides the world’s most comfortable and stylish shoes, accessories as well as apparel to help consumers look & feel their best. Having its footprints in more than 165 countries around the world, Hush Puppies is a global brand, a household name, and a cultural icon. On the consolidated quarterly front, the company recorded net sales and operating income of Rs 589.91 crore for Q4FY21, recording a dip of 4.94 per cent from its net sales & operating income of Rs 620.57 crore reported for Q4FY20. The operating profit declined by 19.3 per cent to reach Rs 126.51 crore in Q4FY21 from Rs 156.75 crore posted in Q4FY20. The net profit was reported at Rs 29.47 crore in Q4FY21 from Rs 38.41 crore in Q4FY20, squeezing by 23.26 per cent. Bata India has increased its penetration in smaller towns. Also, it bears strong brand patronage and is witnessing sales ramping up from new channels. Hence, we recommend BUY.