Hold Bata India: Bonanza Research

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Bonanza Research has recommended hold rating on Bata India , in its March 04, 2010 research report.

"Footwear major Bata India has announced its year end results and has stepped up the dividend to 30% for 2009 which is highest in more than last ten years. It has posted 20.3% y-o-y and 93.17% q-o-q rise in net profit to Rs 25.40 crore in Q4CY09. The full year net profit increased marginally by 3.03% in FY09. The company has generated cash profit of Rs 35.04 crore in Q4CY09 which is 33% rise y-o-y basis justifying its better fundamentals. Its top line grew by 12.8%y-o-y to Rs 288.09 crore as against Rs 255.22 crore in Q4FY08 where as its full year net turnover grew by 10.8% to Rs 1090.18 crore."

"Bata India reported a considerable growth in its bottom lines in q-o-q as well as y-o-y basis. The restructuring process it has undergone for last few years started showing results which are reflected in its financials. At CMP Rs 206.4 the share is trading at forward earnings multiple of 18.17 x (CY11E). Investor can continue to hold the scrip."

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