BATAINDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.0
| Stock Code | BATAINDIA | Market Cap | 8,845 Cr. | Current Price | 688 ₹ | High / Low | 1,301 ₹ |
| Stock P/E | 46.8 | Book Value | 118 ₹ | Dividend Yield | 2.76 % | ROCE | 15.2 % |
| ROE | 15.6 % | Face Value | 5.00 ₹ | DMA 50 | 727 ₹ | DMA 200 | 908 ₹ |
| Chg in FII Hold | 0.25 % | Chg in DII Hold | -0.92 % | PAT Qtr | 71.9 Cr. | PAT Prev Qtr | 18.7 Cr. |
| RSI | 40.2 | MACD | -9.55 | Volume | 70,060 | Avg Vol 1Wk | 1,72,310 |
| Low price | 605 ₹ | High price | 1,301 ₹ | PEG Ratio | 1.38 | Debt to equity | 0.91 |
| 52w Index | 12.0 % | Qtr Profit Var | 9.87 % | EPS | 13.6 ₹ | Industry PE | 39.4 |
📊 Financial Overview: Bata India (BATAINDIA) shows moderate fundamentals with ROCE at 15.2% and ROE at 15.6%. Debt-to-equity at 0.91 indicates manageable leverage. Quarterly profit rose from ₹18.7 Cr. to ₹71.9 Cr., but overall profit variation (+9.87%) highlights modest growth. Cash flows remain steady, though margins are under pressure.
💹 Valuation Indicators: The stock trades at a P/E of 46.8 compared to the industry average of 39.4, suggesting overvaluation. With a book value of ₹118, the P/B ratio is ~5.8, which is steep. PEG ratio of 1.38 indicates growth is somewhat aligned with valuation. Intrinsic value appears lower than the current market price of ₹688, making it moderately overvalued.
🏢 Business Model & Competitive Advantage: Bata India operates in the footwear and retail sector, leveraging strong brand recognition, wide distribution, and consumer trust. Its competitive advantage lies in scale, brand heritage, and diversified product offerings. However, profitability volatility and high valuation weaken overall health.
📈 Entry Zone & Long-Term Guidance: Current price ₹688 is above intrinsic comfort levels. A better entry zone would be closer to ₹620–₹650, aligning with technical support. Long-term holding is favorable only if earnings growth accelerates and valuation moderates.
Positive
- ✅ ROE (15.6%) and ROCE (15.2%) show decent efficiency.
- ✅ Strong brand recognition and wide distribution network.
- ✅ FII holding increased by 0.25%, showing foreign investor confidence.
Limitation
- ⚠️ P/E (46.8) above industry average (39.4).
- ⚠️ P/B ratio (~5.8) is steep.
- ⚠️ Dividend yield (2.76%) is modest compared to valuation.
Company Negative News
- 📉 DII holding decreased by -0.92%, showing reduced domestic support.
- 📉 MACD at -9.55 suggests bearish momentum.
Company Positive News
- 📈 Quarterly profit improved to ₹71.9 Cr. from ₹18.7 Cr.
- 📈 RSI at 40.2 indicates oversold levels, suggesting potential rebound.
Industry
- 🏭 Footwear & retail industry P/E at 39.4, lower than Bata’s valuation.
- 🏭 Sector growth driven by rising consumer demand, fashion trends, and urbanization.
Conclusion
🔎 Bata India is financially stable with strong brand positioning but currently overvalued relative to peers. Entry should be considered near ₹620–₹650. Long-term holding is favorable only if earnings growth accelerates and valuation cools down.
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