Bata India Ltd. share price target

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...

Bata India Ltd (BIL) is the largest retailer and leading manufacturer of footwear in India with ~1300 retail stores as on March 2019. Q4FY19 revenue growth was moderate at 7%YoY impacted by weak performance of E-com channel due to legislation change and one-off institutional order in YoY quarter. EBITDA margin improved by 90bps YoY largely due to expansion in gross margin (120bps YoY) on account of increasing mix of premium products. PAT growth was strong at 69%YoY. Rent expense as % of sales moderately increased by 10bps YoY....

Premiumisation of product portfolio drives growth in FY19 FY19 was an eventful year for Bata with various initiatives undertaken such as sustained efforts towards enhancing share of premiumised product portfolio, refurbishing and redesigning existing store models and enhanced focus on categories like women, youth and sports. In conjunction with the launch of new collections, Bata has increased its investments in branding and advertising by 50-60% over the last two years (3% as a percentage to revenue). Efforts were visible with Bata reporting healthy revenue growth of...