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BATAINDIA - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.2

Last Updated Time : 04 May 26, 11:57 am

Fundamental Rating: 3.2

Stock Code BATAINDIA Market Cap 9,234 Cr. Current Price 718 ₹ High / Low 1,301 ₹
Stock P/E 48.8 Book Value 118 ₹ Dividend Yield 2.64 % ROCE 15.2 %
ROE 15.6 % Face Value 5.00 ₹ DMA 50 748 ₹ DMA 200 942 ₹
Chg in FII Hold 0.25 % Chg in DII Hold -0.92 % PAT Qtr 71.9 Cr. PAT Prev Qtr 18.7 Cr.
RSI 47.6 MACD 5.18 Volume 1,12,426 Avg Vol 1Wk 1,85,696
Low price 605 ₹ High price 1,301 ₹ PEG Ratio 1.44 Debt to equity 0.91
52w Index 16.3 % Qtr Profit Var 9.87 % EPS 13.6 ₹ Industry PE 35.2

📊 Financials: BATAINDIA shows moderate fundamentals with ROE at 15.6% and ROCE at 15.2%. EPS stands at ₹13.6, supported by quarterly PAT of ₹71.9 Cr. (up from ₹18.7 Cr.). Debt-to-equity ratio is 0.91, reflecting manageable leverage. Dividend yield at 2.64% provides steady shareholder return. However, quarterly profit variation (+9.87%) remains modest, limiting growth visibility.

💹 Valuation: The stock trades at a P/E of 48.8 compared to the industry average of 35.2, indicating stretched valuations. The PEG ratio of 1.44 suggests fair growth relative to valuation. Book value is ₹118, giving a P/B ratio of ~6.1, which is expensive. Current price of ₹718 is below both 50 DMA (₹748) and 200 DMA (₹942), showing weak technical momentum.

🏢 Business Model & Competitive Advantage: BATAINDIA operates in the footwear sector, benefiting from strong brand recognition and wide distribution. Its competitive advantage lies in brand loyalty and dividend support. However, stretched valuations and weak price trends reduce attractiveness for fresh entry.

🎯 Entry Zone: A favorable entry zone lies near ₹700–₹720 (close to support levels). Current price of ₹718 is within this zone, offering balanced risk-reward.

📈 Long-Term Holding Guidance: Suitable for long-term investors only if earnings growth accelerates. Partial allocation is recommended, with profit booking near ₹780–₹800 resistance.

Positive

  • ROE (15.6%) and ROCE (15.2%) show moderate efficiency

  • EPS at ₹13.6 provides earnings base

  • Quarterly PAT improved significantly (₹71.9 Cr. vs ₹18.7 Cr.)

  • Dividend yield at 2.64% adds shareholder value

  • FII holdings increased (+0.25%)

Limitation

  • High P/E (48.8) vs industry average (35.2)

  • P/B ratio ~6.1 indicates premium valuation

  • Trading below both 50 DMA and 200 DMA

  • Quarterly profit variation remains modest (+9.87%)

  • DII holdings declined (-0.92%)

Company Negative News

  • Weak technical momentum with price below moving averages

  • Decline in domestic institutional holdings (-0.92%)

Company Positive News

  • Quarterly PAT surged to ₹71.9 Cr. from ₹18.7 Cr.

  • FII holdings increased (+0.25%), showing foreign investor confidence

  • Dividend yield at 2.64% supports long-term investors

Industry

  • Footwear sector trades at industry P/E of 35.2

  • Sector outlook remains stable with consumer demand recovery

Conclusion

⚖️ BATAINDIA is a moderately strong company with brand advantage and dividend support, but stretched valuations and weak technicals limit near-term upside. Entry near ₹700–₹720 offers balanced risk-reward. Long-term holding requires stronger earnings growth; otherwise, cautious partial exposure with profit booking near ₹780–₹800 is recommended.

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