Bata India Q1 Results Review - Underperformance Continues: Dolat Capital

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Bata India Ltd.’s Q1 FY25 revenue was in line, while Ebitda and adjusted profit after tax were below estimate. Revenue de-grew by 1.4% YoY due to harsh summer season and elections in Q1 FY25. On a five-year basis, Relaxo exhibited 2.9% growth while Bata registered a 1.4% increase. The company continued with its retail expansion drive in tier-3/4/5 cities through franchise route and added 33 (net) new stores, taking the franchise store count to 566. Further, the company added 54 total net stores to take the store count to 1,916. Going ahead, management aspires to add 40-45 stores every quarter.We lower our FY25/26E EPS estimates by 8.3/7.4% at Rs 24.9/30.5 to factor in Q1 performance. Key triggers are-favorable base,new advertising campaigns,continued E-com traction andramp-up in store openings. However, an increase in brand investment would pressurize the margin in FY25E. Valuing at 50 times FY26E earnings per share we arrive at target price of Rs 1,523. Maintain ‘Reduce’ rating. .Click on the attachment to read the full report:.Bata India Q1 Results: Profit Jumps 63%.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bata India Q1 Results Review - Underperformance Continues: Dolat Capital

Going ahead, the company is expected to increase franchise and SIS contribution compared to company owned-company operated stores, says the brokerage.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Bata India Q1 Results Review - Underperformance Continues: Dolat Capital

Going ahead, the company is expected to increase franchise and SIS contribution compared to company owned-company operated stores, says the brokerage.

Choose a plan

Follow Us

DOWNLOAD THE APP