Bata India share price shed 3 percent in the early trade on November 11, a day after the company reported loss in the quarter ended September 2020.
The company reported loss at Rs 44.3 crore in Q2FY21 against profit at Rs 71.3 crore, however its revenue plunged to Rs 367.9 crore from Rs 722 crore YoY.
Broking house Dolat Capital has maintained sell rating on the stock. It has revised FY21E and FY22E EPS estimates at Rs 1.5 and Rs 20.1, respectively and introduced FY23E at Rs 25.
The firm believe that the company would suffer due to restricted footfalls in malls, unfavorable base, expected downtrading and less scope for growth in ASP’s in the near term, given unfavorable economic environment.
The re-negotiation in rent structure outside malls would be a challenge for company and value Bata at 55x FY23E EPS to arrive at a target price of Rs 1,365, it added.
At 09:17 hrs Bata India was quoting at Rs 1,352.00, down Rs 15.45, or 1.13 percent on the BSE.
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