Rahul Arora, CEO at Nirmal Bang Institutional Equities told CNBC-TV18, "We have done a lot of ground research on Bata India, we met about 30 stores last month to a month and a half and a lot of people tell us that the stocking doesn’t happen as per their requirements from the parent or from the original warehouse. So they are now currently implementing SAP, they have hired Accenture to help them on supply chain and logistics aspect. So I don’t have any concerns on Bata. Any dip should be used to buy."
"I still think this company can give you about Rs 450 crore worth of free cash flow over the next two years. About 18-20 percent growth in topline over two years and about 30 percent growth in bottomline. So if you look at it on a CY16 basis, it is probably giving you about 26-27 times. I would still value the company at 30 times and still look for 20-25 percent gain in Bata," he added.
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