Bata India rallies nearly 5% post-March quarter results; should you buy?
Bata India Ltd share price: The earnings release showed that the shoemaker registered a consolidated net profit of Rs 65.62 crore for Q4FY23 against Rs 62.96 crore a year ago.
Bata India Ltd share price: Shares of Bata India rose as much as 4.64 per cent on the NSE on May 19, a day after the company reported its March quarter (Q4FY23) numbers. At the time of filing this report, Bata India's scrip stood at Rs 1,542.8 on the NSE, up 1.13 per cent. the stock closed 0.31 per cent on the upside at Rs 1,531 apiece.
The earnings release showed that the shoemaker registered a consolidated net profit of Rs 65.62 crore for Q4FY23 against Rs 62.96 crore a year ago. The company’s revenue from operations during the quarter under review surged 17.03 per cent to Rs 778.58 crore from Rs 665.24 crore logged in the corresponding quarter of the previous fiscal. Bata India's total expenses in the fourth quarter grew 16.82 per cent to Rs 700.22 crore year-on-year (YoY) as compared to Rs 599.39 crore.
The shoemaker’s total income in the March quarter rose 15.28 per cent to Rs 788.52 crore. It reported a net profit of Rs 102.99 crore in FY22.
"The results for the year showcase the significant contribution of strategic growth levers helping Bata India drive growth over pre-COVID levels through innovation, expansion and evolution," Bata said in its earning statement.
The Board has recommended a dividend of Rs 13.50 (270 per cent) per equity share of Rs 5 each, fully paid-up of the company, amounting to Rs 173.512 crore for the financial year ended March 31, 2023, for approval of the Members at the ensuing Annual General Meeting.
Sharekhan has maintained a ‘buy’ call on Bata India for a target price of Rs 1,775 apiece. “Considering long-term growth prospects and limited downside risk we maintain a buy,” the brokerage said.
Brokerage firm ICICI Direct has given a ‘buy’ call on Bata India for a target price of Rs 2,065 apiece.
“Bata, over the last five years, has delivered 20 per cent CAGR returns. Focus on cost reduction, omni channel, change in product mix (higher proportion of casual footwear) and calibrated expansion of retail network through asset-light franchisee can be structurally positive,” ICICI Direct said in its report.
Bata India's share price history
On a year-to-date (YTD) basis, Bata India stock has declined over 6 per cent as compared to Nifty50’s decline of 0.30 per cent. On a six-month basis, the stock has slipped nearly 8 per cent against Nifty50’s decline of over 0.09 per cent.
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