Hold Bata India, target price Rs 1800: ICICI Securities

ICICI Securities has hold call on Bata India with a target price of Rs 1800. The current market price of Bata India Ltd. is Rs 1733. Time period given by analyst is one year when Bata India Ltd. price can reach defined target.

Bata India Ltd., incorporated in the year 1931, is a Large Cap company (having a market cap of Rs 22137.58 Crore) operating in Leather sector.

Bata India Ltd. key Products/Revenue Segments include Footwear and Other Operating Revenue for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 854.81 Crore, up 36.63 % from last quarter Total Income of Rs 625.66 Crore and up 35.93 % from last year same quarter Total Income of Rs 628.84 Crore. Company reported net profit after tax of Rs 72.32 Crore in latest quarter.

Investment Rationale
The brokerage believes, while Bata’s focus on premiumisation, improving brand perception and expanding distribution are steps in the right direction, there will be challenges along the way. That said, the execution seems to be improving and some easy wins will improve the (earnings) trajectory. The footwear segment now has multiple good-quality listed names, hence historical 'scarcity premium' may continue to recede.

Promoter/FII Holdings
Promoters held 52.96 per cent stake in the company as of 31-Mar-2022, while FIIs owned 6.66 per cent, DIIs 27.41 per cent.