Bata India Ltd. share price target

For 1QFY2019, Bata India (BIL) posted strong set of numbers, exceeding our expectations on bottom-line front. Revenues grew by ~8% yoy (in-line with our estimate). The company's operating margins improvement by robust 355bps yoy. On the bottom-line front, BIL reported growth of ~37% yoy to `83cr on the back of strong operating performance..

Bata India Ltd (BIL) is the largest retailer and leading manufacturer of footwear in India with ~1400 retail stores as on June 2018. BIL reported strong earnings growth of 37%YoY supported by 8%YoY growth in revenue and 350bps improvement in EBITDA margin....

Bata India Ltd (BIL) is the largest footwear retailer in India, offering footwear, accessories and bags across brands like Bata, Hush Puppies, Naturalizer, Power, etc. BILs ~70% revenue is derived from Men & Kids segment and balance from womens segment. BIL has over 1,400 Bata retail stores across India. Outlook and Valuation: We ex..

Focus On Value-Added Products & Efficiencies In Cost Structure: ForQ4FY2018, Bata India Ltd reported 5.7% YoY increase in revenue at Rs. 6323 Mn (revenue is reported net of GST). However, on a comparable basis, the revenue grew in double digits with same-store sales growth (SSSG) of 5-6%. The gross margin has expanded because of the focus on value-added products in its revenue mix and soft input prices.

In effort to keep pace with customers changing preferences, Bata India has adopted a strategy to design products based on various customers. Company already has strong brand presence in leather footwear, now it has started focusing on products catering to youth,...

Revenues for the quarter grew 6.9% YoY to | 632.3 crore (I-direct estimate: | 636.6 crore). Post GST implementation, excise duty was subsumed in GST and not a part of revenue. Hence, revenues are not directly comparable on a YoY basis Sustained efforts towards premiumisation of product mix led to gross margin expansion of 180 bps YoY to 55.9%. Furthermore, a controlled operational cost structure (rental and other expenses as a percentage of sales down 174 bps, 58 bps, respectively) led to a...

Bata's Q4FY18 results came broadly in line with our estimates. We anticipated lower revenue growth for Bata compared to Relaxo (+18%)and Khadim (+31%) based on our recent channel checks. In addition, margin improvement benefiting from implementation of GST, was in line with 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. Nevertheless, its new offerings in select segments would gain traction. Further, premiumization, implementation and cost saving...

Q3 above estimates: Reported sales grew 5%; we estimate 10% comparable sales growth after adjusting for GST. EBTIDA grew 33% (EBITDA margin improved 330 bps to 16.5%) supported by change in mix towards higher ASP products. PAT growth moderated to 15% due to lower other income.

ICICI Securities Ltd | Retail Equity Research Revenues for the quarter grew 6.2% YoY to | 674.0 crore (I-direct estimate: | 708.1 crore). Post GST implementation, excise duty was subsumed in GST and was not a part of revenue. Hence, revenues are not directly comparable on a YoY basis On account of higher proportion of value added products in the revenue mix, gross margins for the quarter improved 155 bps YoY to 55.1%. Furthermore, controlled operational cost structure and...

Hiccups in wholesale business: The transition to GST has had an industry-wide impact, with destocking at the wholesale level. BATA too witnessed subdued offtake in 1HFY18 on account of non-compliant wholesalers, which resulted in a ~12% YoY decline in wholesale business in 1HFY18. However, the retail business grew ~9% YoY and since retail contributes over 80% of overall revenue, BATA managed to post an overall growth of 6% YoY in 1HFY18. Growth was also aided by an early festive season. With GST netted off from the topline, we expect similar growth of 6% YoY in 2HFY18....