Buy Bata India with target of Rs 650: Agarwal

Buy Bata India with a target of Rs 650, says Rajesh Agarwal, Head of Research at Eastern Financiers.

Agarwal told CNBC-TV18, "One can buy Bata with a stop loss of Rs 624 and a target of Rs 650. As we all know Bata operates into footwear segment and is one of the largest company in this segment listed in India, with around 1200 owned stores and 30,000 dealers across the country."
He further added, "They are opening new stores, restructuring loss making stores and closing them down. Even they are moving into premium segment from the lower segment, which will add to the margins. On the valuation front also trading at 18 times, which I think is highly undervalued. One can buy this with a stop loss of Rs 624 and a target of Rs 650."