Mehabe score: 4 G Factor: 5 Piotski Score: 5 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 5.
Description
Bata India is primarily engaged in the business of manufacturing and trading of footwear and accessories through its retail and wholesale network.Site:BATAINDIAMain Symbol:BATAINDIA
Stock trades at 1768.0, above its 50dma 1710.67. It also trades above its 200dma 1573.15. The stock remains bullish on techicals
The 52 week high is at 1848.70 and the 52week low is at 1263.60
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Stock is trading at 12.93 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -6.75% over past five years.
– has a low return on equity of 11.02% for last 3 years.
Competition
– The industry trades at a mean P/E of 22.7x. Relaxo Footwear trades at the industry’s max P/E of 96.74x. BATAINDIA trades at a P/E of x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 7.0. BATAINDIA has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is 5.5%. The max 1- month return was given by Sreeleathers: a return of 17.28 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 267.0 cr compared to Rs 135.0 cr for period ended Jun 2020, a rise of 97.8%
Company reported negative operating profit of Rs -32.0 cr for period ended Jun 2021. For same period last year, operating profit was -86.0
The EPS for Jun 2021 was Rs -5.41 compared to Rs 2.29 for previous quarter ended Mar 2021 and Rs -7.85 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1840.0 cr for period ended TTM vis-vis sales of Rs 1708.0 cr for the period ended Mar 2021, a growth of 7.2%. The 3 year sales cagr stood at -14.4%.
Operating margins expanded to 12.0% for period ended TTM vis-vis 10.0% for period ended Mar 2021, expansion of 200.0 bps.
Net Profit reported at Rs -58.0 cr for period ended TTM vis-vis sales of Rs -89.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -5.0% compared to 11.0% over the last 3 Years. – The stock has given a return of 36% on a 1 Year basis vis-vis a return of 23% over the last 3 Years. – The compounded sales growth on a TTM bassis is -20% vis-vis a compounded sales growth of -13% over the last 3 Years. – The compounded profit growth on a TTM basis is -143% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 5.23% vis-vis 5.33% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 14.51% vis-vis 15.71% for Mar 2021
Conclusion
– – Stock is trading at 12.93 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -6.75% over past five years.
– has a low return on equity of 11.02% for last 3 years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 1710.67 and is trading at 1768.0, thus bullish price action wise.
