⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
BATAINDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.0
| Stock Code | BATAINDIA | Market Cap | 8,654 Cr. | Current Price | 673 ₹ | High / Low | 1,301 ₹ |
| Stock P/E | 45.8 | Book Value | 118 ₹ | Dividend Yield | 2.82 % | ROCE | 15.2 % |
| ROE | 15.6 % | Face Value | 5.00 ₹ | DMA 50 | 818 ₹ | DMA 200 | 1,016 ₹ |
| Chg in FII Hold | -0.71 % | Chg in DII Hold | -0.08 % | PAT Qtr | 71.9 Cr. | PAT Prev Qtr | 18.7 Cr. |
| RSI | 16.6 | MACD | -46.7 | Volume | 4,89,503 | Avg Vol 1Wk | 3,03,622 |
| Low price | 665 ₹ | High price | 1,301 ₹ | PEG Ratio | 1.35 | Debt to equity | 0.91 |
| 52w Index | 1.22 % | Qtr Profit Var | 9.87 % | EPS | 13.6 ₹ | Industry PE | 34.1 |
📊 Financial Overview
- Revenue & Profitability: PAT improved from 18.7 Cr. to 71.9 Cr., but quarterly profit variation (+9.87%) indicates modest growth.
- Margins & Returns: ROCE (15.2%) and ROE (15.6%) are decent, reflecting moderate efficiency.
- Debt: Debt-to-equity ratio at 0.91, manageable leverage.
- Cash Flow: EPS at 13.6 ₹, modest relative to valuation multiples.
💹 Valuation Metrics
- P/E Ratio: 45.8 vs Industry PE of 34.1 → Overvalued.
- P/B Ratio: Current Price ₹673 vs Book Value ₹118 → Highly stretched.
- PEG Ratio: 1.35 → Reasonable, suggesting valuation aligns with growth prospects.
- Intrinsic Value: Current price above fair value zone, limited upside.
🏢 Business Model & Competitive Advantage
- Strong brand recognition in footwear retail with wide distribution.
- Dividend yield at 2.82% provides income support.
- However, valuations are stretched and profitability growth remains modest.
📈 Entry Zone Recommendation
- Technicals: RSI at 16.6 (oversold), MACD negative, price below 50DMA & 200DMA.
- Suggested entry zone: ₹600–₹640 for accumulation.
- Long-term holding viable only if earnings growth accelerates and valuations normalize.
✅ Positive
- Strong brand recognition and market presence.
- Dividend yield at 2.82% provides steady income.
- Debt-to-equity ratio low (0.91).
⚠️ Limitation
- P/E ratio (45.8) significantly above industry average.
- P/B ratio highly stretched.
- Quarterly profit growth modest (+9.87%).
📉 Company Negative News
- FII holding reduced (-0.71%).
- DII holding reduced (-0.08%).
- Weak technical momentum with RSI oversold and MACD negative.
📈 Company Positive News
- Quarterly profits improved sequentially.
- Dividend yield supports investor confidence.
🏭 Industry
- Industry PE at 34.1, lower than company’s 45.8.
- Retail and footwear sector stable but competitive, requiring strong brand positioning.
🔎 Conclusion
- Bata India shows strong brand presence and dividend support but trades at stretched valuations.
- Profitability growth is modest, limiting near-term upside.
- Best strategy: Accumulate in the ₹600–₹640 zone.
- Long-term holding viable only if earnings growth improves and valuation aligns closer to industry averages.