To buy Customized Research reports, please email: suhani.adilabadkar@gmail.com or call: 9701063320

Tuesday 28 November 2017

BATA INDIA LTD- Q2 FY18

BATA INDIA LTD, one of the most trusted Indian footwear brand reported stable September quarter FY18 with double digit growth for PAT & EBDITA and mild uptick of 1% in Revenues. Revenue was reported at Rs. 5869 Mn against Rs. 5837 Mn same period previous year. PAT or Net Profit  stood at Rs. 429 Mn in the current quarter compared to Rs. 346 Mn same period previous year. EBDITA jumped YOY from Rs. 676 Mn in Q2 FY17 to Rs. 793 Mn in the current Q2 FY18. Sequential growth is negative with respect to Revenue, EBDITA & PAT as September quarter has been somber compared to the previous June quarter. June is the strongest quarter for BATA as schools & educational institutions re-open during the quarter. BATA India is still regarded as the most trusted brand for school & Kids footwear across India. EBDITA Margin was reported at 13.51% in current quarter compared to 11.58% corresponding quarter previous year jumping 193 basis points YOY. Net Profit Margin jumped 138 basis points YOY and was reported at 7.31% in Q2 FY18. Lower finance costs & depreciation declining 39% & 10% respectively improved the Net Profit Margin in the current quarter. Other Income has increased 44% YOY and 28% sequentially in the current quarter. Other Income was reported at Rs. 148 Mn against Rs. 103 Mn same period previous year.

BATA has well maintained its leadership in the branded footwear industry and is working towards being a contemporary lifestyle brand evident from the launch of SS 2017 collection which included international styles for women like Espadrilles and Bata Insolia range in the previous quarter. Women  footwear contributes 26% to total revenues. BATA has been constantly premiumizing its product offering with several new launches in men & women categories like Hush puppies, Naturalizer, North Star as part of its AW17 collections with digital promotions. The company also introduced first of its kind, new category of footwear, TWEENS for 10-14 year olds. BATA has maintained its margins focusing on value added products and coast efficiencies in cost structure.


Bata stands for Trust, Superior Quality & Credibility and it has maintained it for over more than 85 years. In the present scenario, the company has over 1290 Bata stores, sells 50 million pairs and serves 120,000 customers every day. We recommend BUY for the stock for medium & long term investment with target price of Rs. 875.00.


Disclaimer                                       
                                      
The information and opinions contained in the research reports have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. The research report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in this research is suitable for their particular circumstances and, if appropriate, seek professional advice, including but not limited to tax advice. The reports do not take into account the particular investment objectives, financial situations, risk profile or needs of individual clients. The user assumes the entire risk of any use made of this information. This report is not to be relied upon in substitution for the exercise of independent judgment.

The price and value of investments referred to in this research and the income from them may fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur.

Research data and reports published/ emailed/ text messaged via Short Messaging Services, Online Messengers, WhatsApp etc/transmitted through mobile application/s, including but not limited to FLIP™, Video Widget, telephony networks, print or electronic media and or those made available/uploaded on social networking sites (e.g. Facebook, Twitter, LinkedIn etc) is for informational purposes only. The reports are provided for assistance and are not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Though disseminated to clients simultaneously, not all clients may receive the reports at the same time. We will not treat recipients as clients by virtue of their receiving this report.

The reports include projections, forecasts and other predictive statements which represent our assumptions and expectations in the light of currently available information. These projections and forecasts are based on industry trends, circumstances and factors which involve risks, variables and uncertainties. The actual performance of the companies represented in the report may vary from those projected.

The opinions expressed in the reports are subject to change but we have no obligation to tell our clients when our opinions or recommendations change. The reports are non-inclusive and do not consider all the information that the recipients may consider material to investments.

We shall not be in any way responsible for any indirect, special or consequential damages that may arise to any person from any inadvertent error in the information contained in the reports nor do they take guarantee or assume liability for any omissions of the information contained therein. Information contained therein cannot be the basis for any claim, demand or cause of action. These data, reports and information do not constitute scientific publication and do not carry any evidentiary value whatsoever.

The user should consult their own advisors to determine the merits and risks of investment and also read the Risk Disclosure Documents for Capital Markets and Derivative Segments as prescribed by Securities and Exchange Board of India before investing in the Indian Markets. The securities discussed in this report may not be suitable for all investors. Investors must make their own investment decision based on their own investment objectives, goals and financial position and based on their own analysis. Prospective investors and others are cautioned that any forward-looking statements, if any, are not predictions and may be subject to change without notice.

This report may provide the addresses of, or contain hyperlinks to websites. Except to the extent to which the report refers to material we take no responsibility whatsoever for the contents therein. Such addresses or hyperlinks are provided solely for your convenience and information and the content of the linked site does not in any way form part of this report. Accessing such website or following such link through this report shall be at your own risk.


The author of this Research Report accepts no liability and will not in any way be responsible for the contents of this report or for any losses, costs, expenses, charges, including notional losses/lost opportunities incurred by a recipient as a result of acting or non-acting on any information/material contained in the report. This is not an offer to sell or a solicitation to buy any securities or an attempt to influence the opinion or behavior of investors or recipients or provide any investment/tax advice. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.

1 comment: