Analyst's Pick: Centrum Broking puts ‘buy’ on Bata India
Centrum Broking has rated Bata India as a ‘buy’ with a price target of Rs 132, citing strong growth prospects and attractive valuations as the key trigger.
By ET Bureau |
Research: Centrum Broking
Bata
CMP: Rs 86
Target price: Rs 132
Centrum Broking has rated Bata India as a ���buy��� with a price target of Rs 132, citing strong growth prospects and attractive valuations as the key trigger.
"Consumption slowdown has not impacted Bata���s growth trajectory due to down-trading effect. The company���s continued focus on improving shoe designs, particularly for women and youth, together with stricter cost-control measures; improved product mix; modernisation and consolidation of manufacturing operations and transformation of the wholesale operation makes us sanguine on the company���s robust business model," the Centrum note to clients said.
"Superior performance during a period of dampening consumer demand has enhanced our confidence in the management���s capabilities and business model. The stock trades at an attractive P/E of 7.5 times CY09 (estimated) and 6.2 times CY10 (estimated)," the note added.
Bata
CMP: Rs 86
Target price: Rs 132
Centrum Broking has rated Bata India as a ���buy��� with a price target of Rs 132, citing strong growth prospects and attractive valuations as the key trigger.
"Consumption slowdown has not impacted Bata���s growth trajectory due to down-trading effect. The company���s continued focus on improving shoe designs, particularly for women and youth, together with stricter cost-control measures; improved product mix; modernisation and consolidation of manufacturing operations and transformation of the wholesale operation makes us sanguine on the company���s robust business model," the Centrum note to clients said.
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"Superior performance during a period of dampening consumer demand has enhanced our confidence in the management���s capabilities and business model. The stock trades at an attractive P/E of 7.5 times CY09 (estimated) and 6.2 times CY10 (estimated)," the note added.
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