Bata India Ltd. share price target

Bata has constantly undertaken efforts for transforming its brand image from a mass brand to a premium one with launch of new trendy collections. The management indicated that premium products (50% of sales) was growing at a faster pace than the mass product portfolio providing an uptick in the average retail selling price, which was up 4.5% during Q3FY20. Enhanced share of premium products has led gross margins to improve significantly by 290 bps to 56% in FY17-19. The management has the long term aim to enhance the share of premium products by ~500 bps in the next two to...

Bata posted a moderate Q3FY20 and slightly missed our estimates. Revenue grew 6.7% y-o-y to INR 831 cr, slightly below the estimate of a 10% YoY growth.

BATA has in recent times been re-branding the products and positioned itself in the higher value products category.

Rent expense as % of sales improved by 70bps YoY. Further, store additions via franchisee route will control fixed costs. BIL's strong initiatives to increase footfalls along with acceleration in store additions via franchisee will support revenue growth....

Bata posted a moderate Q2FY20 and slightly missed street estimates. Revenue grew 7.4% YoY to INR 722 cr, slightly below the estimate of a 10% YoY growth.

Bata has constantly undertaken efforts towards transforming its brand image from a mass brand to a premium one through launch of new trendy collections, investing in marketing spends and redesigning existing store models. Recently, the company inaugurated its fifth experience centre store, with the aim of providing complete foot-care services like 360 foot scanning, customised insoles, medicated pedicure and shoe laundry. The store also offers a wide assortment of fashion and working women styles, premium collections and a sneaker studio. Enhanced share of...

Premiumization and SSSG Growth - The Usual Theme Working Wonders: Bata posted a strong set of numbers in Q1FY20 reporting an increase in its net profit by 22.5% to Rs. 1009.7 Mn in Q1FY20 as against Rs. 824.1 Mn YoY.

Bata has a robust distribution network having ~1420 stores, including ~150 franchisee stores. The company has charted out aggressive store expansion plans mainly in Tier II/Tier III cities. In a bid to enhance the market share in smaller towns, the management intends to open ~ 500 franchisee stores in the next five years. Asset light expansion model is expected to further...

Bata posted a strong Q1FY20 beating our and street estimates. Net Sales at INR 883 cr were up 11% YoY and in line with estimates.

View: Steady growth in retail channel; Maintain Accumulate Bata's Q1FY20 financial performance was in line our estimates. Despite slowdown in most of the consumer categories, the company was able to post strong growth due to new campaigns and attractive product launches during the quarter. The e-com business posted double digit growth, which was encouraging considering its moderate performance in Q4FY19. The retail channel continues to grow steadily aided by premiumization. We have broadly maintained our FY20E and FY21E EPS estimates at ` 27.9 and...