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Last Updated : May 29, 2018 04:46 PM IST | Source: Moneycontrol.com

Buy Bata India; target of Rs 900: Geojit

Geojit is bullish on Bata India has recommended buy rating on the stock with a target price of Rs 900 in its research report dated May 28, 2018.

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Geojit's research report on Bata India

Bata India Ltd (BIL) is the largest retailer and leading manufacturer of footwear in India with ~1290 retail stores as on March 2018. BIL reported strong earnings growth of 45%YoY supported by 340bps improvement in EBITDA margins for Q4FY18 and revenue grew by 6.9%. Gross margin has been improving since Q1FY18 from 52.3% to 55.9% aided by premiumisation, lower rent and benefit from input tax credits.

Outlook

BIL is currently trading at 36x 1yr fwd P/E (at 1Yr Avg). The healthy outlook on earning is expected to support valuations. We value BIL at 38x on FY20E EPS and revise upwards our target price to Rs.900 (Earlier Rs772) and recommend Buy.

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For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



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First Published on May 29, 2018 04:46 pm
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