Dolat Capital recommended Accumulate rating on Bata India with a target price of Rs 1415 in its research report dated May 27, 2019.
Dolat Capital's research report on Bata India
Bata’s Q4FY19 revenues and EBITDA were below our estimates, but APAT was in line. The lower revenue growth in the quarter was due to the below-normal performance in the e-commerce channel and a one-off institutional order in base quarter. However, the retail channel grew in double digits. We have broadly maintained our FY20E and FY21E EPS estimates at ` 27.9 and ` 31.1, respectively.
We value Bata at 45x FY21E EPS to arrive at a TP of ` 1,415. We believe that the company has a high growth potential, especially after the recent changes at the stores and strong new brand building campaigns. Therefore, the high valuations for the stock is justified. Maintain Accumulate.
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