February 16, 2017 / 15:38 IST
Bata India’s Q3FY17 results were above our estimates on the revenue and EBITDA front. However, on account of exceptional item (VRS expense), PAT came in below our estimate. Revenues witnessed decent growth of 2.5% YoY to Rs 640.8 crore marginally above our estimate of Rs 630.1 crore.
Outlook
Bata is also doubling its advertising expenditure for FY17 for brand building purposes. We would watch the progress on recent initiatives undertaken by the company to revive the growth. Hence we assign a HOLD recommendation on the stock with a target price of Rs 515 (based on 27.0 FY19E EPS of Rs 19.0).
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