Buy Bata India; target Rs 1050: Firstcall Research
Brokerage house Firstcall Research is bullish on Bata India and has recommended buy rating on the stock with a target price of Rs 1050 in its November 14, 2013 research report.
November 20, 2013 / 14:05 IST
Firstcall Research report on Bata India
"Bata India reported 17.3 percent rise in its profit at Rs. 375.88 mn in Q3 CY13 against Rs.320.43 mn in the corresponding quarter previous year. Net profit margin at 7.76 percent rose by 20 basis points YOY.Net sales rose by 14.3 percent at Rs. 4844.29 mn in the current September quarter. EBDITA rose at a higher rate of 19 percent at Rs. 721.58 mn against Rs. 606.79 mn in Q3 CY12. EBDITA margin YOY improved by 75 basis points. High inflation and economic slowdown has taken a toll on Bata's revenues as sales fell by 15.4 percent QOQ. Finance costs are constant at Rs 2.4 mn and total expenditure has been reduced by 12 percent QOQ. Bata India has evolved itself with the changing times and has started providing online and home delivery services to cater to the new generation.""The company has wide reach of 1250 retail stores and has opened approximately 100 stores in the current year. Bata India has launched 'Sundrops' in women's segment in 2012 and associated with 'angry birds brand' to launch new collection of casual shoes and accessories for children and teenagers. The company is debt free, an added advantage in the present volatile high interest scenario. Bata has been operating in India for the last 80 years and is still going strong with its quality products in organized footwear Industry. Promoters have raised their stake by 0.95 percent in November 2013 which shows faith of the management in India's growth story even in the present volatile economic environment. The company is a sure 'BUY' (TP Rs 1050) for long term value investors," says Firstcall Research report.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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