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.
IDBI Capital Report
Bata India Ltd.'s Q2 FY25 result was below our estimates on key parameters. Slowdown in demand due to subdued consumption weighed on sales volume. Further, higher sales through franchise stores and e-commerce put pressure on the operating margin in Q2 FY25. During the quarter, the company added 39 stores to 1955 stores.
Bata is currently facing headwinds in the mass segment led by higher competition and lower consumption. However, the premium offerings such as the EV Slide Power series and a leather collection series driving the growth in the near term.
The management is confident about recovery in the consumption in H2 FY25 led by festive season .We have broadly maintained our earnings estimates over FY25E/FY26E.
The stock has corrected significantly in price recenelty, which gives us potential upside from current level. Upgrade the stock to Buy with a target price of Rs 1,610 (unchanged), assigning 50 times PER on FY26E.
Click on the attachment to read the full report:
DISCLAIMER
This 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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
