Buy Bata India, target price Rs 1450: Edelweiss

Edelweiss has given a buy rating to Bata India with a target price of Rs 1450. The share price moved up by 0.06 per cent from its previous close of Rs 1376.30. The stock’s last traded price is Rs 1377.10.

Bata India Ltd., incorporated in the year 1931, is a Large Cap company (having a market cap of Rs 17878.18 Crore) operating in Leather sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 367.87 Crore, up 172.35 % from last quarter Sales of Rs 135.08 Crore and down -49.05 % from last year same quarter Sales of Rs 721.96 Crore. Company reported net profit after tax of Rs -44.32 Crore in latest quarter.


Investment Rationale
Stock has taken support at its 21 day exponential moving average and is close to range breakout. RSI indicator has closed at 3 months high yesterday indicating strong momentum.

Promoter/FII Holdings
Promoters held 53 per cent stake in the company as of June 30, 2020, while FIIs held 11.1 per cent, DIIs 21.4 per cent and public and others 14.5 per cent.