Sharekhan has given Buy recommendation for Bata India with a target price of Rs. 2370 in its research report issued on Dec 02, 2021
Sharekhan’s research report on Bata India
Bata is eyeing growth through its strategic levers of maintaining a relevant product portfolio, expanding its network, becoming an aspirational brand for youth, increasing digital footprint, creating an efficient supply chain, and curbing costs. Casuals’ portfolio fetched 30% of pre-COVID revenue; share has risen to 40% now. Bata aims to build a portfolio with focus on casualisation. Bata had 270 franchise stores in mid-November; it plans to add over 150 more, taking store count to over 500 in 2-3 years.
We maintain Buy on stock with an unchanged PT of Rs. 2,370. Bata trades at 52.5x/45x its FY2023E/FY2024E EPS and 22.8x/19.6x its FY2023E/FY2024E EV/EBIDTA.