Bata India Ltd. share price target

With a 3% downside from the CMP, we maintain our HOLD rating on the stock.

Bata India's (Bata) Q1FY26 result was in-line with our estimates on key parameters. Q1FY26 was relatively tough, showing only flattish growth, though it seemed slightly better than the previous quarter. There is still stress in the mass segment, particularly the middle and mass segments of the consumer base. Consumers in the target middle-class segment have experienced a pinch due to inflation, necessitating a focus on value for money in products. Further, there is a structural shift in consumer behaviour towards online platforms, leading to growth in e-commerce and direct-to-consumer (D2C) brands. The...

With a 1% downside from the CMP, we maintain our HOLD rating on the stock.

Bata India (BATA) delivered yet another weak quarter with 1% YoY revenue decline (5% miss) and ~230bp YoY gross margin contraction. The weak performance was attributed to the company’s deliberate shift toward valuedriven offerings to boost volume amid subdued demand.

With a 2% downside from the CMP, we maintain our HOLD rating on the stock

With a 3% downside from the CMP, we maintain our HOLD rating on the stock.

Bata India (BATA) delivered a modest growth recovery with 2% YoY revenue growth. The 10% miss on EBITDA was primarily driven by lower gross margin (-140bp YoY) on account of a shift in the channel mix.

With a 5% downside potential from the CMP, we maintain our HOLD rating on the stock.

Bata India’s (Bata’s) Q1FY2025 numbers were weak, with revenues declining by 1.4% y-o-y, and EBITDA margin falling by 393 bps y-o-y to 21.2%, dragging down adjusted PAT by 27.5% y-o-y.

With an 8% upside potential from the CMP, we maintain our HOLD rating on the stock.

Recommendation: With a 5% upside potential from the CMP, we maintain HOLD