Let’s Step into the world of Bata India, where each stride in their recent earnings call feels as exciting as finding that perfect pair of shoes!
Today, let’s step into the fascinating world of Bata India, where their recent conference call unveiled exciting strategies and achievements. Bata, a prominent name in footwear, recently hosted a Q2 FY24 earnings call via Axis Capital Limited. The call featured Gunjan Shah, the MD and CEO, Anil Somani, the Director Finance and CFO, and Nitin Bagaria, the Company Secretary.
Amidst a dynamic industry landscape, Bata India showcased its expansion prowess, boasting about 2150 points of sale. They emphasized multi-brand outlets, store renovations, and alliances like the collaboration with 9 West for global style offerings in India. The brand’s Sneaker Studios witnessed robust growth, nearing 600 stores, while their casual washable footwear line, Floatz, continued to gain momentum.
The footwear industry in India has witnessed a paradigm shift with brands like Bata navigating towards omnichannel experiences, emphasizing digital expansion, retail excellence, and product innovation to resonate with evolving consumer preferences.
we’ll also address the burning question: Will Bata India achieve its price target of ₹3,000? Join us as we dissect the company’s performance, market strategies, and factors influencing its stock price trajectory.
About Bata India Ltd
Bata India stands as a prominent player in the footwear and accessories industry, operating extensively through retail and wholesale channels. Established in 1931 after the parent company, Bata Corporation, originated in 1894 in the Czech Republic, the brand holds a global footprint across 70 countries with over 5,300 retail outlets and production units spanning 18 nations.
In India, Bata is a household name with 1,569 stores strategically positioned across various cities and a retail space covering 3.07 million square feet. The company’s manufacturing prowess is evident through four units capable of producing a staggering 21 million footwear units annually.
Diversification defines Bata’s portfolio, showcasing an array of renowned brands like Bata, Power, Marie Claire, North star, Scholl, Hush Puppies, and more. The brand invests in Research & Development and enhanced comfort technology.
Collaborating with Global Footwear Services Pte. Ltd. of Singapore, Bata embarked on a decade-long partnership, fortifying their R&D, marketing, and brand development initiatives. Their retail strategy emphasizes tier 3-4 cities, adding franchise stores and renegotiating rents across 1000+ outlets to optimize costs.
Not just restricted to retail, Bata’s non-retail segment encompasses wholesale, industrial, and institutional divisions, extending to over 1000 towns through multi-brand outlets and catering to 550 enterprises.
Expanding into e-commerce, Bata achieved significant sales milestones, leveraging digitally-enabled platforms and shipping orders through store networks. Their diverse portfolio, including the successful launch of ‘Sneaker Studios,’ demonstrates Bata’s adaptability to evolving market trends.
The brand’s loyalty program, “Bata Club,” boasts over 13 million active members, contributing to increased repeat rates and footfall through personalized campaigns and discounts.
Recent News Around Bata India Ltd
- Bata India expanded to 2150 points of sale, emphasizing multi-brand outlets and renovating existing stores.
- Forged a strategic alliance with Global Brand 9 West to elevate global style offerings and enhanced e-commerce presence.
- Expanded Sneaker Studios to nearly 600 stores, emphasizing Floatz casual washable footwear, and invested in brand development.
- Implemented technology investments such as HbM and ERP systems, enhancing Floatz production with IMEVA capability.
- Witnessed strong EBITDA growth despite muted revenue, targeting sustainable double-digit growth and a revenue goal of ₹5,000 crores by 2025.
- Prioritized customer satisfaction, implementing a variable incentive structure for retail outlets and focusing on store experience.
Bata India Ltd Q2 Fy2024 Key Points And Summary:
- Bata witnessed a marginal decline in Q2 FY24 revenue, resting at ₹8,191 Mn, down by 1.3% from the prior year.
- EBITDA showed robust growth, surging by 12.8% to ₹1,817 Mn, signaling enhanced operational efficiency.
- The EBITDA margin expanded from 19.4% to 22.2%, showcasing improved profitability and operational effectiveness.
- Profit before tax marked a substantial uptick of 20.7% to reach ₹870 Mn in Q2 FY24.
- An exceptional item related to VRS amounted to ₹409 Mn, constituting 5% of the total figures.
- Net profit after tax experienced a notable decline, registering ₹340 Mn, down by 38.0% from the prior year’s numbers.
- In H1 FY24, Bata sustained marginal revenue growth at 0.3%, reaching ₹17,773 Mn compared to the previous year.
- Despite varied performance in net profit, the company maintains a focus on consistent EBITDA margins and aims for sustained growth.
Shareholding Pattern
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Shareholding Pattern
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| Sep 2022 | Dec 2022 | Mar 2023 | Jun 2023 | Sep 2023 | |
| Promoters + | 50.16% | 50.16% | 50.16% | 50.16% | 50.16% |
| FIIs + | 7.87% | 4.86% | 5.85% | 6.63% | 7.51% |
| DIIs + | 28.97% | 31.58% | 30.56% | 30.31% | 29.97% |
| Public + | 13.00% | 13.41% | 13.42% | 12.89% | 12.36% |
| No. of Shareholders | 2,16,979 | 2,28,678 | 2,31,072 | 2,22,909 | 2,09,846 |
The shareholding pattern of Bata India Ltd over the specified periods reflects some interesting trends:
- Promoters’ Stake:
- Consistently maintained at 50.16% across all periods, indicating a stable and unwavering ownership stance.
- FIIs (Foreign Institutional Investors):
- Witnessed fluctuations from 7.87% to 7.51% between September 2022 and September 2023.
- Initially decreased to 4.86% in December 2022 before gradually increasing again.
- This volatility might suggest varying foreign investor interest or strategic portfolio adjustments within the company.
- DIIs (Domestic Institutional Investors):
- Displayed fluctuations from 28.97% to 29.97% during the observed periods.
- Showed a slight increase by the end of the period compared to the initial stake.
- Public Shareholding:
- Hovered around 13%, exhibiting marginal fluctuations from 12.36% to 13.42%.
- The public interest in shareholding remained relatively consistent throughout.
- Number of Shareholders:
- Witnessed fluctuations, starting from 2,16,979 shareholders and decreasing to 2,09,846 by September 2023.
- This reduction might indicate certain shareholders exiting or consolidating their positions.
Overall, while the promoter’s stake remained unchanged, fluctuations in FIIs, DIIs, and the number of shareholders suggest varying investor sentiments and potential changes in institutional investment strategies over the observed periods.
Bata India Ltd Share Price Target 2024 To 2030
Bata India Ltd Share Price Target 2024
| When | Maximum Price | Minimum Price |
| January 2024 | ₹1,802.15 | ₹1,567.09 |
| February 2024 | ₹1,838.93 | ₹1,599.07 |
| March 2024 | ₹1,876.46 | ₹1,631.70 |
| April 2024 | ₹1,821.80 | ₹1,584.18 |
| May 2024 | ₹1,794.88 | ₹1,560.77 |
| June 2024 | ₹1,859.50 | ₹1,616.95 |
| July 2024 | ₹1,840.90 | ₹1,600.78 |
| August 2024 | ₹1,914.54 | ₹1,664.82 |
| September 2024 | ₹1,991.12 | ₹1,731.41 |
| October 2024 | ₹1,952.08 | ₹1,697.46 |
| November 2024 | ₹2,010.64 | ₹1,748.38 |
| December 2024 | ₹2,060.91 | ₹1,792.09 |
Bata India Ltd’s projected share price targets for 2024 reveal a fluctuating trend, showcasing both ascending and descending price ranges across the months. The range will vary from a high of ₹2,060.91 in December 2024 to a low of ₹1,560.77 in May 2024. This fluctuation could be attributed to multiple factors impacting the stock market, including industry-specific dynamics, market sentiment, and macroeconomic conditions.
The ascending trend observed from September to December 2024, with the maximum price target escalating from ₹1,991.12 to ₹2,060.91, might suggest positive market sentiment, potentially influenced by robust company performance, strategic initiatives, or favorable market conditions.
Conversely, the intermittent dips in price targets during the earlier months might have been influenced by factors like market corrections, global economic fluctuations, or sector-specific challenges.
Bata India Ltd Share Price Target 2025
| when | Maximum Price | Minimum Price |
| January 2025 | ₹2,102.13 | ₹1,617.02 |
| February 2025 | ₹2,156.03 | ₹1,658.48 |
| March 2025 | ₹2,240.11 | ₹1,723.16 |
| April 2025 | ₹2,196.19 | ₹1,689.37 |
| May 2025 | ₹2,132.22 | ₹1,640.17 |
| June 2025 | ₹2,228.17 | ₹1,713.98 |
| July 2025 | ₹2,184.48 | ₹1,680.37 |
| August 2025 | ₹2,252.04 | ₹1,732.34 |
| September 2025 | ₹2,330.86 | ₹1,792.97 |
| October 2025 | ₹2,391.47 | ₹1,839.59 |
| November 2025 | ₹2,451.25 | ₹1,885.58 |
| December 2025 | ₹2,512.53 | ₹1,932.72 |
In 2025, Bata India Ltd’s share price projections continued to display a fluctuating pattern, reflecting diverse highs and lows throughout the year. The range will vary significantly, from a maximum of ₹2,512.53 in December 2025 to a minimum of ₹1,617.02 in January 2025.
The upward trend in price targets from January to December 2025 showcased consistent growth, hitting a peak of ₹2,512.53 by the year-end. This upward trajectory may suggest positive market sentiments, potentially influenced by robust company performance, strategic advancements, or favorable industry conditions.
Conversely, periodic dips observed in the price targets throughout the year might have been affected by market corrections, macroeconomic shifts, or sector-specific challenges impacting investor confidence.
Bata India Ltd Share Price Target 2026 To 2030
| Year | Maximum Price | Minimum Price |
|---|---|---|
| 2026 | ₹2,638.16 | ₹1,846.71 |
| 2027 | ₹2,901.98 | ₹2,031.38 |
| 2028 | ₹4,062.77 | ₹2,031.38 |
| 2029 | ₹3,517.55 | ₹1,758.77 |
| 2030 | ₹4,572.81 | ₹3,200.97 |
The expected price trajectory suggests that Bata India Ltd’s shares will follow an upward trend in the upcoming years. It’s anticipated that the expected prices will aim for higher peaks annually, reaching an estimated high of ₹2,638.16 in 2026, while not dropping below ₹1,846.71 during the same year. Moving forward, the anticipated prices are expected to progressively rise, hitting a projected high of ₹4,572.81 in 2030, with the expected low hovering around ₹3,200.97 in the same year. This projection indicates a consistent incline, implying the potential for sustained growth and positive market sentiment.
Anticipating this trajectory, it’s projected that Bata India Ltd’s share prices will continue on an ascending path, largely influenced by several factors. These could include strategic expansions, innovative product launches, sustained market confidence, and potentially favorable industry conditions. The company’s focused approach towards technological advancements, market penetrations, and enhanced brand salience could contribute significantly to this growth.
The ascending trend reflects an optimistic outlook, underlining the potential for Bata India Ltd’s shares to progressively ascend and potentially reach the speculated highs, benefiting from strategic initiatives and an optimistic market sentiment.
Bata India Ltd’s Financial Condition (Last 5 Years)
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | TTM | |
| Sales + | 2,931 | 3,056 | 1,708 | 2,388 | 3,452 | 3,456 |
| Expenses + | 2,441 | 2,210 | 1,540 | 1,960 | 2,647 | 2,647 |
| Operating Profit | 490 | 846 | 169 | 427 | 804 | 809 |
| OPM % | 17% | 28% | 10% | 18% | 23% | 23% |
| Other Income + | 66 | 66 | 87 | 54 | 39 | 5 |
| Interest | 14 | 129 | 108 | 99 | 118 | 112 |
| Depreciation | 64 | 296 | 265 | 242 | 295 | 315 |
| Profit before tax | 478 | 487 | -117 | 140 | 430 | 388 |
| Tax % | 31% | 32% | 23% | 26% | 25% | |
| Net Profit + | 329 | 329 | -89 | 103 | 323 | 290 |
| EPS in Rs | 25.6 | 25.59 | -6.95 | 8.01 | 25.13 | 22.54 |
| Dividend Payout % | 24% | 16% | -58% | 680% | 54% |
Bata’s financial trajectory over recent years reveals a narrative of fluctuating performance marked by notable shifts in key financial metrics. From 2019 to 2023, the company experienced a sales surge from ₹2,931 to ₹3,452, maintaining a consistent trajectory in the trailing twelve months (TTM). Operating profits followed suit, rising from ₹490 to ₹809 over the same period, with a steady TTM operating profit margin (OPM) at 23%.
However, the bottom line exhibited significant volatility. Net profits oscillated, ranging from ₹329 in 2019 to a concerning -₹89 in 2021 before rebounding to ₹290 in the TTM. This erratic pattern was reflected in the earnings per share (EPS), fluctuating between ₹25.6 and -₹6.95, eventually settling at ₹22.54 in the TTM.
Anomalies surfaced in dividend payouts, swinging between 16% and an extraordinary 680%, indicating irregular dividend disbursements. These financial oscillations were notably influenced by varying tax percentages, evident from fluctuations in the tax rate, ranging from 31% to 25% during the observed period.
While recent years showcase signs of recovery and positive growth trends, these irregularities underscore the necessity for a comprehensive examination of fiscal policies and operational strategies within Bata. This evaluation is crucial to fortify consistency in financial performance and shareholder returns, ensuring resilience against market volatilities and reinforcing the company’s long-term sustainability amidst a dynamic economic landscape.
FAQS
1. What is the significance of Bata India Ltd’s current stock price?
The current stock price for Bata India Ltd stands at ₹1,647 as of the most recent market data, reflecting the value at which the stock is currently being traded.
2. Could you explain Bata India Ltd’s Market Capitalization?
Bata India Ltd’s Market Capitalization amounts to ₹21,164 Cr, signifying the total market value of its outstanding shares.
3. What do the High and Low figures represent in Bata India Ltd’s context?
The High/Low values for Bata India Ltd’s stock represent the highest and lowest prices at which the stock has traded during a specified period, with ₹1,771 being the highest and ₹1,381 being the lowest.
4. What does Stock P/E signify for Bata India Ltd?
The Stock P/E (Price/Earnings) ratio for Bata India Ltd is calculated at 67.3, indicating the stock’s valuation in relation to its earnings per share.
Should one invest in Bata India Ltd?
Bata India Ltd’s financial narrative embodies both resilience and volatility. Over a decade, the company witnessed consistent sales growth, culminating in ₹3,452 crores in the trailing twelve months (TTM), rebounding from a low of ₹1,708 crores in March 2021. Operating profits followed suit, ascending to ₹809 crores in the TTM, with operating margins peaking at 23%.
However, the profitability narrative was erratic, swinging from ₹259 crores in 2011 to a concerning -₹89 crores in 2021 before recovering to ₹290 crores in the TTM. This variance echoes in the earnings per share (EPS), fluctuating between ₹25.6 and -₹6.95 before stabilizing at ₹22.54 in the TTM. Likewise, dividend payouts oscillated from 15% to a substantial 680%.
While reserves showed a consistent upward trajectory, reaching ₹1,339 crores in March 2023, borrowings also surged to ₹1,263 crores in the same period. Cash flows exhibited moderate improvements over time.
Ownership patterns experienced minor shifts, with promoters settling at 50.16%, and institutional investors gradually increasing their stake.
Bata India Ltd’s financial journey is a tale of promise amid fluctuations. It reflects potential for growth but also underscores areas demanding scrutiny. A more comprehensive evaluation of the company’s market positioning, strategic initiatives, and financial stability would be advisable before considering investment.
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