Bata India rallies over 2% as parent company buys shares

MUMBAI: Shares of Bata India gained momentum in a weak market as parent company Bata BN bought shares from open market.

On November 12, Bata BN BV bought 6,08,657 shares of Bata India at Rs 888.05 on the BSE. Meanwhile, ICICI Brokerage Services sold 6,27,000 shares at Rs 888.35.

At 09:30 a.m.; the stock was at Rs 971, up Rs 19.15 or 2.01 per cent, on the BSE. It touched a high of Rs 974 and a low of Rs 959.70 in trade today.

The stock is available at trailing EPS of Rs 21.47 and a price-to-earnings ratio of 44.38. The book value is Rs 108.98 per share. The price-to-book ratio is 8.73 and dividend yield is 0.63 percent.

“We believe Britannia Industries will benefit from: 1) consumers up trading to high-end biscuits and branded dairy products, which should yield higher-than-sector value growth for the company; 2) new management using Britannia’s expertise for brand extensions; and 3) higher growth from distribution network expansion, as the company increases its share of rural markets,” said UBS report.

The brokerage has maintained ‘Buy’ rating and price target of Rs 1,050.
Mitesh Thacker, Technical Analyst, miteshthacker.com has advised traders to buy the stock with a stop loss of Rs 937 for a target of Rs 985.