Bata India's target Rs 1390: Kotak Securities's Top Stock to Buy Today

Kotak Securities recommends buying Bata India shares, setting a target price of Rs 1390. This represents an upside potential of approximately 2% from the current market price of Rs 1361.9. The analysts believe that Bata India's strong brand recognition, wide distribution network, and focus on value-for-money products will continue to drive growth for the company. They also expect the company to benefit from the government's initiatives to promote domestic manufacturing.

About Bata India:

Bata India Limited, a subsidiary of the Bata Shoe Organization, is one of India's leading footwear manufacturers and retailers. Incorporated in 1931, the company has a wide product portfolio that includes shoes, sandals, slippers, and accessories. Bata India operates an extensive distribution network of over 1,435 retail stores and 7,000 authorized dealers. With a strong brand presence and a commitment to innovation, Bata India caters to a diverse customer base and holds a significant market share in the Indian footwear industry.

52 Week Price Trend:

Bata India's current market price (CMP) of Rs 1361.9 falls within a range of Rs 1380.85 (52-week low) and Rs 1771.45 (52-week high). This indicates that the stock has been consolidating within this range for the past year. While the stock has seen some volatility during this period, the overall trend has been relatively stable. Investors may consider evaluating the company's financial performance, industry outlook, and overall market sentiment before making investment decisions.

Stratzy's MOST Analysis:

BATAINDIA has been rated BB- by Stratzy's MOST framework, which evaluates stocks based on Management, Outlook, Safety, and Trend (MOST). This rating indicates that the company has medium fundamental risks. Specifically, the assessment highlights potential concerns in terms of management efficiency, outlook for future growth, and current safety margins. The overall score suggests areas where BATAINDIA may need to strengthen its fundamentals to mitigate these risks and improve its overall financial position.

Company's Fundamentals:

Bata India (NSE: BATAINDIA) exhibits a high Price-to-Earnings (PE) ratio of 63.49, indicating that investors are willing to pay a premium for its earnings. The Price-to-Book (PB) ratio of 13.09 implies that the company's market value is significantly higher than the value of its assets. Despite these metrics, Bata India offers a modest Dividend Yield of 0.95%, which may not provide substantial income to investors. The company's high PE ratio suggests growth potential, while its low Dividend Yield prioritizes capital retention for future expansion.

Fundamental and Technical information provided in this blog were last updated on 18 Apr, 2024

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