The 18 reports from 6 analysts offering long term price targets
for Bata India Ltd. have an average target of 1653.00. The consensus estimate
represents an upside of 4.81%
from the last price of 1577.20.
Bata India witnessed a revenue recovery rate (adjusted) reaching 80% in Q4FY21 vs. 74% in Q3FY21. Lower revenues from formal & fashion footwear continued to impact gross margin YoY though QoQ gross margins witnessed an improvement. Revenue fell 5% YoY to | 589.9 crore in Q4FY21. Aligning with the current demand scenario, Bata tweaked its product portfolio from formals & fashion categories to casuals, fitness & essential categories. Gross margins contracted ~570 bps YoY to 53.1% mainly owing to unfavourable product mix. Cost control measures led to lower other...
We trim our FY22/23E estimates given subdued discretionary demand due to extended lockdown in Q1FY22 and continue to maintain HOLD rating with a revised TP of Rs. 1500/share (Rs. 1600 earlier) we roll forward our target PE multiple of 45x to its FY23E EPS.
Volumes Picking Up Gradually, but We Expect Stress to Remain in FY22E: Recovery is clearly visible from the latest two quarterly numbers, with YoY revenues in Q2FY21 and Q3FY21 coming in at 51% and 74% of the numbers seen in the corresponding quarters in the previous year.
Q3FY21 revenue de-grew by ~26% YoY owing to Covid-19 led disruption, but on a sequential basis, growth was strong at +67% supported by festival demand and company's channel expansion initiatives. The overall volumes reached 88% of preCovid levels. Sales through digitally enabled platforms now contributes ~15% of total revenue (10% in Q2FY21). For strengthening E-commerce channel, BIL rolled out Bata ChatShop', Bata Home Delivery' & Bata Stores on Wheels'. To reach smaller towns, the company opens new stores via franchise route and ensures availability in multi-brand outlets via distribution channels. BIL opened 45 new franchise stores in the quarter taking the total franchisee to 221 and targets to open 500 in smaller towns...
Bata continues to penetrate newer towns through franchise operated stores (opened 45 stores taking total store count to 221 franchise stores). Some of the new towns include Itanagar, Varkala, Sivakasi, Pali and Ratnagiri (all having population between 50,000 and 3 lakh). It has reiterated its vision of opening 500 franchise stores by 2023 and reaching towns with population of less than 2 lakh. Furthermore, in a bid to strengthen its wholesale distribution channel (~12% of revenues), Bata has significantly ramped up its touch-points with Bata now servicing ~30,000 multi-branded outlets. This...
We trim our FY21E estimates and continue to maintain HOLD rating with a revised TP of Rs. 1600 (Rs. 1308 earlier) we roll forward our target PE multiple of 45x to its FY23E EPS.
A changing business model - BATA in the process of re inventing itself: BATA over the last few years has focused on higher value products and re-inventing itself to cater to the younger and urban population with the aggressive addition of stores and the introduction of red collection and increased focus on women footwear.
A changing business model - BATA in the process of re inventing itself: BATA over the last few years has focused on higher value products and re-inventing itself to cater to the younger and urban population with the aggressive addition of stores and the introduction of red collection and increased focus on women footwear.
We believe, BIL will be able to revive its revenue growth trajectory when the economy is back to normal. We value BIL at 42x on FY23 EPS. Gradual recovery led by channel expansion initiatives Q2FY21 revenue de-grew by ~49% YoY owing to Covid-19 led disruption, but the growth was robust on a sequential basis (+173% QoQ). Currently, all of the stores are open (Vs.85% in Q1FY21) and the company's channel expansion initiatives supported the growth. To generate demand in the current scenario, BIL has launched two new products to suit work at home. For strengthening E-commerce channel, the company...
The management highlighted that smaller towns witnessed a faster recovery rate (~75% of pre-Covid levels) while Tier I cities (Bata's key markets) are picking up pace at a slower rate (~50% of pre-Covid sales). In a bid to strengthen its wholesale distribution channel (~12% of revenues), Bata has significantly ramped up its touch-points with the company now servicing ~30,000 multi-branded outlets (MBOs). This enables it to leverage its brand strength in Tier III-V towns. Apart from MBOs, Bata will continue penetrating in newer towns through franchise operated stores (opened 200th store in...
We turn positive on the stock from a long term perspective given immense growth potential and revise our rating from SELL to HOLD with TP of Rs. 1,308 (earlier Rs.1,150/share) and continue to value it at a target multiple of 40x PE its FY23E EPS.
Valuation and Risks: Good brand recognition, market share and being amongst the very few companiesin the listed space in footwear, the company would continue to hold premiumvaluations.
Bata's Q1FY21 was largely impacted by extended lockdowns across the country till the first week of May and significant disturbances during the remaining period led to the contraction of revenue and Gross Margins for Bata India. Revenue for Q1FY21 declined by 85% YoY to Rs 135 cr
Q1FY21 revenue de-grew sharply by ~85% YoY owing to lock-down in April & May, and nil production due to Covid-19 pandemic. Usually Q1 is the strongest quarter on account of high demand due to school openings. However, the schools are now closed due to lock-down. Despite gradual relaxation in lockdowns, prevailing uncertainties are impacting the discretionary demand. Currently BIL's ~85% stores are open and the company has achieved ~35-40% of the pre-Covid business levels as per management. To generate demand in the current scenario, BIL has launched two new products to suit work at home, strengthening E-commerce channel, rolled out two new...
Bata generates ~50% of the revenues from premium category footwears (MRP> Rs 1000+) and largely operates through its wide retail network contributing ~84% to the revenues. We, Initiate coverage with SELL rating on the stock with a target price of Rs 1150 as we value the stock at 40x P/E on its FY23
Valuation and Risks:A cash rich and clean balance sheet, management with excellent track record and high brand recognition will help sustain valuations.
In view of the current situation, management stated that the company is expanding its e-commerce presence with enhancing online channels, allowing delivery in more than 1300 cities and rolling out home delivery. Additionally, the company is focused on several cost management efforts including rental negotiations, closure of unviable stores and thrust on digitization across the organization to boost...
