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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 quality company, based on a 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 not a good buy now, based on weak price trend analysis suggesting prices may fall. 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 2.7% , indicating slower growth.
Q.2 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.3 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.4 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 Historic Median
Gross Profit Margin 19.3 19.3
Operating Profit Margin 21.59 21.59
Net Profit Margin 9.48 7.55
Q.5 Return on Asset of Bata India Ltd?
Bata India Ltd Return on Asset is 9.29(x), which is above its 5 year historical median of 7.94(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Bata India Ltd?
Bata India Ltd Return on equity is 21.32% for FY-2025 , which is above its historical median of 17.71%, indicating the business is making better use of its shareholders capital.
Q.7 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 estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Bata India Ltd?
Bata India Ltd Cash conversion cycle is 56 , above its historical median of 52 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.98 0.98
ROE 21.32 17.71
ROCE 36.57 32.16
Cash Conversion Cycle 56 52
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 0.22 , 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, indicating the business is able to service its debt comfortably.

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 0.00% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 3,488.8 578.7
Gross Profit 673.4 49.5
Operating Profit 750 51
Net Profit 331 15.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.98 1.02
ROE 21.32 7.57
ROCE 36.57 8.93
Cash Conversion Cycle 56.13 87

Valuation & price assessment

Q.1 Stock return of Bata India Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 3% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 3% -11% -19.4% -41%
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 measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 51.68 66.29 42.98
Price to Book 5.78 9.51 1.33
Price to Sales 2.64 7.38 0.96
EV to EBITDA 10.6 26.49 11.48

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