Check Before You Invest : Bata India Ltd

BSE: 500043 NSE: BATAINDIA ISIN: INE176A01028

| Sector: FMCG | Industry: Footwear

Snapshot

Q.1 Which industry/sub-sector does Bata India Ltd belong to?

Bata India Ltd belongs to the FMCG sector, operating specifically within the Footwear segment.

Q.2 Is Bata India Ltd a good quality company?

Bata India Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Bata India Ltd undervalued or overvalued?

Bata India Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Bata India Ltd a good buy now?

Bata India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Bata India Ltd?

Bata India Ltd revenue growth is 0.3% for FY-2025, which is below its 5-year CAGR of 2.68%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Bata India Ltd?

Bata India Ltd Return on capital employed is 36.57% for FY-2025, which is above its 5-year historical median of 32.16%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Bata India Ltd?

Bata India Ltd Return on Asset is 9.29%, which is above its 5-year historical median of 7.94%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Bata India Ltd?

Bata India Ltd Return on equity is 21.32% for FY-2025, which is above its 5-year historical median of 17.71%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Bata India Ltd?

Bata India Ltd Cash conversion cycle is 56 days, above its 5-year historical median of 52 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.98	0.98
ROE	21.32	17.71
ROCE	36.57	32.16
Cash Conversion Cycle	56 days	52 days

Q.6 Gross Profit margin of Bata India Ltd?

Bata India Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.3% for FY-2025, which is in line with its 5-year median of 19.3%, indicating stable margins.

Q.7 Operating Profit Margin of Bata India Ltd?

Bata India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.59% for FY-2025, which is in line with its 5-year median of 21.59% indicating stable margins.

Q.8 Net Profit Margin of Bata India Ltd?

Bata India Ltd Net Profit Margin is 9.48% for FY-2025, is above with its 5-year median of 7.55%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	19.3	19.3
Operating Profit Margin	21.59	21.59
Net Profit Margin	9.48	7.55

Q.9 Debt to Equity ratio of Bata India Ltd?

Bata India Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.35, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Bata India Ltd?

Bata India Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Bata India Ltd?

Promoters hold 50.16% of the Bata India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Bata India Ltd vs industry peers?

Bata India Ltd revenue CAGR is 2.68%, compared to the industry median CAGR of 0.71%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	0.3	0.7
Gross Profit Growth	-7.7	-0.7
Operating Profit Growth	-5.7	-1.3
Net Profit Growth	25.9	-2.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.98	1.01
ROE	21.32	5.53
ROCE	36.57	10.23
Cash Conversion Cycle (days)	56.13	87

Valuation & price assessment

Q.1 Stock return of Bata India Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 2.4% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	2.4%	-11.9%	-21.2%	-40.2%

Q.3 Valuation ratios of Bata India Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	52.14	66.96	32.02
Price to Book	5.83	11.89	1.33
Price to Sales	2.67	5.26	0.96
EV to EBITDA	10.7	21.51	11.55

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