Kotak Securities's Stock Idea: Buy Bata India with Target Rs 1460

Kotak Securities issued a buy recommendation for Bata India on January 10, with a target price of Rs 1460. This represents a potential upside of 2.7% from the current market price of Rs 1422.15. The brokerage cited the company's strong performance in recent quarters and its continued expansion into new markets as key reasons for its bullish outlook. Bata India is a footwear manufacturer and retailer with a presence in over 100 countries. The company has been facing some challenges in recent years due to the rise of online retailers but has been taking steps to adapt to the changing market environment.

About Bata India:

Bata India, a subsidiary of the global footwear giant Bata, is one of India's leading footwear manufacturers and retailers. Established in 1931, the company operates over 1,400 retail stores across India and has a strong presence in various footwear segments, including casual, formal, and athletic shoes. Bata India is known for its wide range of products, catering to a diverse customer base, and has a strong brand recognition in the Indian market. It also operates manufacturing facilities in various locations across the country, ensuring a consistent supply chain and quality control.

52 Week Price Trend:

Bata India's current market price (CMP) stands at Rs 1422.15, reflecting a notable decline from its 52-week high of Rs 1633. Despite this setback, the stock has rebounded from its 52-week low of Rs 1269, indicating a potential recovery. Investors may consider observing the stock's performance in the near term to gauge its stability and potential for further growth. The company's fundamentals, financial performance, and industry dynamics should be taken into account when making any investment decisions.

Stratzy's MOST Analysis:

BATAINDIA has a MOST rating of AA-, indicating a medium fundamental risk. This rating is based on Stratzy's analysis of the company's management, outlook, safety, and trend. The rating suggests that BATAINDIA has strong management and a positive outlook, but there are some concerns about its safety and trend. Overall, the rating indicates that BATAINDIA is a company with a solid foundation, but investors should be aware of potential risks before investing.

Company's Fundamentals:

Bata India (NSE: BATAINDIA) is a renowned footwear company with a prominent presence in India. Its key financial metrics provide valuable insights into its valuation and performance. The Stock PE ratio of 52.64 indicates that investors are willing to pay 52.64 times the company's earnings for each share. The PB Ratio of 12.46 suggests that the market value of Bata India's assets is 12.46 times its book value. Lastly, the Dividend Yield of 0.84% represents the annual dividend paid to shareholders as a percentage of the current share price, offering a modest income stream for investors.

Fundamental and Technical information provided in this blog were last updated on 10 Jan, 2025

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