Saturday, June 15, 2024
HomeMarket NewsBroker’s call: Bata (Hold) - The Hindu BusinessLine

Broker’s call: Bata (Hold) – The Hindu BusinessLine

Published on

Latest articles

Kotak Mahindra shares rise 4% on RBI nod to Zurich Insurance buying 70% in Kotak General

Kotak Mahindra shares rise 4% on RBI nod to Zurich Insurance buying 70% in...

Vodafone Idea shares zoom 14% today; key technical levels to watch out for

Vodafone Idea shares zoom 14% today; key technical levels to watch out for Vodafone Idea...

Nadeem Amin is the New President for Netstal Americas

Nadeem Amin is the New President for Netstal Americas Netstal appoints Nadeem Amin as its...

SCREEN Launches High-Density SU Ink For Uncoated Papers Used By Truepress JET 520HD Mono

SCREEN Launches High-Density SU Ink For Uncoated Papers Used By Truepress JET 520HD Mono It...


Target: ₹1,780

CMP: ₹1,648

Bata India result was below estimates. Revenue grew by 2 per cent YoY (2 per cent on a 4-Year CAGR) and volume growth of 1-2 per cent impacted owing to weak demand environment and lesser wedding occasions. The mass portfolio (about 22 per cent of sales as per our est.) continued to remain under pressure.

The premium portfolio (MRP > ₹1,000) continues to remain strong, which was led by Sneakers and Hush Puppies, moreover Floatz achieved highest qtr revenue led by new monsoon collection.

Management reiterated that renovation of the stores which was started 18 months back is likely to continue for another two quarters post which it will accelerate the COCO store expansion, however majority about 80 per cent) of the stores expansion will be franchise stores.

We remain positive on the long-term outlook as the company’s investment in the back end processes will drive overall efficiency and its efforts on premiumisation and casualisation strategy through fast-growing sneakers and franchise-led expansion in Tier 3-5 towns will bear fruits in the longer run.

However, the company is facing short-term challenges such as: A large part of the mass portfolio is still under pressure; and the management’s continued investments in strengthening systems and processes technology adoption (SAP, MSD, HPM) as well as higher ad-spends.





Source link

More like this

Kotak Mahindra shares rise 4% on RBI nod to Zurich Insurance buying 70% in Kotak General

Kotak Mahindra shares rise 4% on RBI nod to Zurich Insurance buying 70% in...

Vodafone Idea shares zoom 14% today; key technical levels to watch out for

Vodafone Idea shares zoom 14% today; key technical levels to watch out for Vodafone Idea...

Nadeem Amin is the New President for Netstal Americas

Nadeem Amin is the New President for Netstal Americas Netstal appoints Nadeem Amin as its...