Bata India Q4 Results Review - Expect Gradual Recovery; Downgrade To Reduce: 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 Q4 FY24 results were ahead estimate. Revenue grew by 2.5% with 39% volume growth across e-com channel. On a four-year basis, Relaxo exhibited 8.4% growth while Bata registered 6.5% increase.The company has continued its sneakerization journey. In Q4 FY24, Bata implemented sneaker studios across 698 stores. Further, it launched first Power exclusive brand outlet during the quarter. Moreover, it plans to extend Power brand across categories like apparel (currently present in 70 stores). Bata aims to open 10 Power EBO’s and expand apparel reach to 100 stores by Dec-24. In addition, Bata also scaled up its distribution reach across 1,538 towns..Bata continued with its retail expansion drive in tier-3/4/5 cities through franchise route and added 24 (net) new stores, taking the franchise store count to 533. Further, the franchise volume growth was ~25%. Going ahead, management aspires to add 40 franchise every quarter.We lower our FY25/26E EPS estimates by 7.6/8.2% at Rs 27.2/32.9 to factor Q4 performance. .Key triggers are-favorable base,new advertising campaigns, continued E-com traction and ramp-up in store openings. Increase in brand investment would pressurize margin in FY25E. Valuing at 45 times FY26E EPS we arrive at target price of Rs 1,480. Downgrade to ‘Reduce’ rating from Accumulate..Click on the attachment to read the full report:.Bata India Q4 Results: Net Profit Down 3%.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 Q4 Results Review - Expect Gradual Recovery; Downgrade To Reduce: Dolat Capital

The company has continued its sneakerization journey.

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Bata India Q4 Results Review - Expect Gradual Recovery; Downgrade To Reduce: Dolat Capital

The company has continued its sneakerization journey.

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