Neutral Bata India; target of Rs 1900: Motilal Oswal

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26 Aug, 2025 12:21

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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.

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Bata India - 14 -11-2022 -moti