Buy Bata;target of Rs 550: Axis Securities

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Axis Securities's research report on BataNet sales, EBITDA and PATgrew 15%,30%, 28% YoY vs. consensus estimate of 12%, 20% and 24%. GPM contracted again by 320 bps YoY to 52%. Higher inventory levels (possibly due to SAP issues) have led to higher discounting led liquidation in FY16. OPM expanded 150 bps YoY to 12.9%due to lower operating costs.Given the macro situation, we lower our sales growth expectation to13% (from 15%)in FY17. Also, we reduce our EBITDA margin estimate from 13.4% to 13.2% (still 220bps riseover FY16 on the back of better gross margin). We lower our FY17 EPS by 8% to factor in lower sales growth and margin. Maintain BUY with revised TP of Rs550 (vs. Rs580) based on forward P/E of 28x.For all recommendations, 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.

Read More