Buy Bata India, target price Rs 2065: ICICI Direct

ICICI Direct has buy call on Bata India with a target price of Rs 2065.The current market price of Bata India is Rs 1643.8.

Bata India, incorporated in the year 1931, is a Large Cap company (having a market cap of Rs 21129.93 Crore) operating in Leather sector.

Bata India key Products/Revenue Segments include Footwear and Other Operating Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 841.62 Crore, down -11.62 % from last quarter Total Income of Rs 952.31 Crore and up 34.52 % from last year same quarter Total Income of Rs 625.66 Crore. Company has reported net profit after tax of Rs 54.82 Crore in latest quarter.

The company’s top management includes Mr.Ashwani Windlass, Mr.Ravindra Dhariwal, Ms.Radha Rajappa, Mr.Ashok Kumar Barat, Mr.Shaibal Sinha, Mr.Alberto Toni, Ms.Kanchan Chehal, Ms.Vidhya Srinivasan, Mr.Gunjan Shah, Mr.Akshay Chudasama. Company has B S R & Co. LLP as its auditors. As on 30-06-2022, the company has a total of 13 Crore shares outstanding.

Investment Rationale
The brokerage expects Bata to record 11% revenue growth with sneaker category (~20% revenues) to outperform formal category.

Promoter/FII Holdings
Promoters held 50.16 per cent stake in the company as of June ended quarter while FIIs owned 6.84per cent and DIIs 30.11 per cent.