Bata India Ltd. share price target

Bata, India's largest footwear retailer, we believe is at an inflection point driven

A Strong Quarter, Courtesy-Shift of Festive Season, Boom in the Premium Segment: Bata India Ltd's revenue for Q3FY19 came in at Rs. 7790 Mn, up 15.5% YoY and 15.7% QoQ. EBITDA for the quarter was at Rs. 1636 Mn, up 46.8% YoY and 87.3% QoQ.

ICICI Securities Ltd | Retail Equity Research Bata reported one of its best quarterly performances with a strong beat across all parameters. It reported robust revenue growth of 15.5% YoY | 778.7 crore (I-direct estimate: | 722.9 crore). This is the second consecutive quarter wherein Bata reported double digit revenue growth after 10 quarters. Sustained enhancement of product mix drove realisations (up ~13% YoY) with volume growth of 3%. Furthermore, SSSG grew 12% for the quarter...

Q2FY19 showed continued margin traction: Bata India Ltd's revenue for Q2FY19 came in at Rs. 6730 Mn, up 14.7% YoY but down by 15.6% QoQ , almost in line with our estimate. EBITDA for the quarter came in at Rs. 719.9 Mn, up 35.5% YoY (down 34% QoQ).

Bata reported healthy revenue growth of 14.7% YoY | 673.1 crore (Idirect estimate: | 645.9 crore). Reported growth was the highest in the last 10 quarters. The management indicated that its latest brand campaign Be surprised' has been successful. Also, Bata has rapidly...

Bata India Ltd (BIL) is the largest retailer and leading manufacturer of footwear in India with ~1400 retail stores as on Sept 2018. BIL continued to report strong earnings growth of 30%YoY supported by 15%YoY growth in revenue and 200bps improvement in EBITDA margin....

For 2QFY2019, Bata India (BIL) posted strong set of numbers, exceeding our expectations on bottom-line front. Revenues grew by ~15% yoy (in-line with our estimate). The companys operating margins improvement by robust 199bps yoy. On the bottom-line front, BIL reported growth of ~30% yoy to `56cr on the back of strong operating performanc..

The recent Red Label Collection' led to healthy footfalls and an increase in sales in the ladies' category. Efforts towards premiumisation of the product portfolio and maintaining volume growth yielded improved realizations for Bata. Current average realization by a good amount while volumes remained tapered at ~ 50 Mn pairs in FY18.

Bata reported steady revenue growth of 8.3% YoY to | 797.3 crore (I-direct estimate: | 815.0 crore). The management indicated that its latest Red Label Collection' witnessed strong traction, which led to healthy footfalls and an increase in sales of the women's category On account of higher proportion of value added products in the revenue mix, gross margins for the quarter improved 100 bps YoY to 53.3%. Furthermore, a controlled operational cost structure and positive operating leverage (rental & other expenses down 147 bps...

Bata's Q1FY19 revenue was in line, EBITDA and PAT exceed estimates. We anticipated lower revenue growth for Bata compared to peers based on our recent channel checks. Nevertheless, margin improvement benefiting from implementation of GST, was ahead of our anticipation. Going ahead, we believe that Bata sales growth would remain lower vs peers, mainly due to increased competition, better and economic offerings by peers and persistent execution issues with Bata. Nevertheless, we believe that the company's new initiative Bata @ Home should address ongoing execution issues. Further, its new...