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Neutral Bata India; target of Rs 1900: Motilal Oswal

Motilal Oswal recommended Neutral rating on Bata India with a target price of Rs 1900 in its research report dated November 14, 2022.

November 25, 2022 / 03:32 PM IST
 
 
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Motilal Oswal's research report on Bata India


BATA reported a healthy recovery in revenue, up 35% YoY and 15% from pre-COVID levels. However, rising RM prices and higher ad spends pulled down PAT 23% below pre-COVID levels (33% miss). The slower recovery from pre-COVID levels, the impact of inflation on consumers, and GST rate hikes are still affecting the Mass Consumer segment. However, the ongoing cool-off in RM prices is a silver lining. Subsequently, we have cut our FY23 PAT estimate by 6%, factoring in a revenue/PAT CAGR of 23%/81% over FY22-25. We maintain our neutral rating.


Outlook


We ascribe a P/E of 40x on a FY25 basis to arrive at our TP of INR1,900. We maintain our Neutral rating.


For all recommendations report, click here


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Bata India - 14 -11-2022 -moti

Broker Research
first published: Nov 25, 2022 03:32 pm