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Bata India Ltd Stock Analysis

Large Cap
Evaluated by 5472 users | BSE: 500043 | NSE: BATAINDIA |
Retailing

Bata India has incorporated as Bata Shoe Company Private Limited in 1931. The company was set up initially as a small operation in Konnagar (near Calcutta) in 1932. In January 1934, the foundation stone for the first building of Bata’s operation - now...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Bata India Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Dec'10Dec'11Dec'12Dec'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 22.26%35.99%28.3%27.2%23.91%14.88%14.84%16.53%21.09%23.22%
Value Creation Index 1.332.221.541.441.140.330.330.480.891.08
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,2761,5491,8422,0652,1552,4232,4742,6342,9313,056
Y-o-Y Gr. Rt.-21.4%18.9%12.1%4.4%12.4%2.1%6.5%11.3%4.3%
Adjusted EPS (Rs.) 6.8114.0213.3515.5713.0712.1113.8817.1925.6225.83
Y-o-Y Gr. Rt.-105.9%-4.8%16.6%-16.1%-7.4%14.6%23.9%49%0.8%
Book Value per Share (Rs.) 27.8642.2452.1463.1761.8994.99103.04114.74135.52147.36
Adjusted Net Profit 87.5180172200168156178221329332
Net Op. Cash Flow (Rs. Cr.) 58.931.418418395204257160345582
Debt to Cash Flow from Ops 1.29000000000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Bata India Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 10.2%7.2%7.3%4.3%
Adjusted EPS 16%14.6%23%0.8%
Book Value per Share 20.31912.78.7
Share Price 16.3% 25.1% 25.4% 22.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Dec'10Dec'11Dec'12Dec'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 24.0337.3326.9826.0122.5713.8914.0115.7920.4718.26
Operating Profit Margin (%) 12.6615.4315.5716.3513.0812.1311.9613.8116.7127.74
Net Profit Margin (%) 6.8611.639.319.697.86.437.218.3911.2310.86
Debt to Equity 0.21000000000
Working Capital Days 147130114124118146144148145147
Cash Conversion Cycle 27293540354138272231
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 52.96%
Institutions 31.33%
Non-Institutions 15.71%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Bata India Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Bata India Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Bata India Ltd's performance infers:

Bata India Ltd earnings have grown by 14.6%, whereas share price has appreciated 25.1% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Bata India Ltd share prices over the last 10 years. Here is what we found out:

Bata India Ltd share price has appreciated 20.2% annually over the past ten years.

Bata India has incorporated as Bata Shoe Company Private Limited in 1931. The company was set up initially as a small operation in Konnagar (near Calcutta) in 1932. In January 1934, the foundation stone for the first building of Bata’s operation - now called the Bata. In the years that followed, the overall site was doubled in area. This township is popularly known as Batanagar. It was also the first manufacturing facility in the Indian shoe industry to

Bata India has incorporated as Bata Shoe Company Private Limited in 1931. The company was set up initially as a small operation in Konnagar (near Calcutta) in 1932. In January 1934, the foundation stone for the first building of Bata’s operation - now called the Bata. In the years that followed, the overall site was doubled in area. This township is popularly known as Batanagar. It was also the first manufacturing facility in the Indian shoe industry to receive the ISO: 9001 certification. The company went public in 1973 when it changed its name to Bata India. Today, Bata India has established itself as India’s largest footwear retailer. Its retail network of several stores gives it a reach / coverage that no other footwear company can match. The stores are present in good locations and can be found in all the metros, mini-metros and towns. Bata’s smart looking new stores supported by a range of better quality products are aimed at offering a superior shopping experience to its customers. The company also operates a large non retail distribution network through its urban wholesale division and caters to millions of customers through many dealers.

Business area of the company

The company is the largest retailer and leading manufacturer of footwear in India and is a part of the Bata Shoe Organization. The company’s four state-of-the-art production facilities are located strategically across India, producing all kinds of footwear. Currently, the company owns brands like Mocassino, Hush Puppies, Scholls, North Star, Power, Marie Claire, Bubblegummers, Ambassador, Comfit.

Awards

2010:

  • 'Brand Equity' recognized Bata in the 'TOP 50 Most Trusted Brands'.
  • Listed amongst India's Largest Corporations by Fortune India Magazine.
  • Received Images Fashion Award for the Most Admired Retail Partner of the Year.
  • Received the ‘Most Admired Footwear Brand’ of the year award by Images Fashion Forum.

2011:

  • Awarded ‘Retailer of Year (Footwear/Non Apparel)’ by the Asia Retail Congress at Mumbai.
  • Received the ‘Most Admired Footwear Brand’ of the year award by Images Fashion Forum in Mumbai.
  • Amity University awarded Bata India ‘Corporate Excellence Award for the Best Retail Chain’.
  • Recognized as the Most Trusted Brand at 18th position by the Brand Trust Report.
  • Awarded the ‘SUPERBRANDS’ status again for the year 2012.

2012:

  • Brand equity recognized Bata as one of the 'Top most trusted brands' in November 2012. 
  • Awarded the 'Most Admired Large Format Multi Brand Footwear Retailer of the Year - National Chain' by the Images Shoes & Accessories forum.
  • Awarded the 'Customer & Brand Loyalty Award in the Footwear Sector ' from AIMIA.
  • The Brand Trust Report recognized Bata India as the most trusted brand at the 18th position.

2013:

  • Bagged the No. 1 position in the FOOTWEAR category by Brand Equity.
  • Awarded Images Most Admired National Footwear Retail Chain of the Year.
  • Ranked at the 11th position by DNA Newspaper on the basis of a survey conducted by research firm TRA amongst the top Brands in India.

2014-15:

  • 'Pitch Top 50 Brands 2014' Awards by Pitch Magazine.
  • 'Platinum Awards Winner-2014'- Reader's Digest Trusted Brands by India Today.
  • 'The Economic Times Best 200 Brands in India' by The Economic Times.
  • 'Dun & Bradstreet Corporate Awards -2014' by Dun & Bradstreet.
  • Brand Equity recognized BATA in the ‘Top 50 Most Trusted Brands’ of the Country and recognized BATA at the 9th position.
  • 'Delhi NCR's Hot 50 Brands' Awards by Hindustan Times.
  • 'Golden Global Achiever's' Awards by Institute of Economic Studies.
  • 'Child's Most Popular Award - 2014' by The Child Magazine.

2015-16:

  • Dun & Bradstreet Corporate Awards-2015.
  • The Most Trusted Brand-Brand Trust Report, India Study 2015.
  • Best Footwear Brand 2015 - Brand with outstanding e-Retail Performance and re-design/re-launch of the Year by Franchise India.

2017-18:

  • IMAGES Most Admired Footwear Brand of the year 2017 at the 18th Annual IMAGES Fashion Awards.
  • Featured among AFAQ’S 2017 India’s Buzziest Brands.
  • Dun & Bradstreet corporate award 2017.

2018-19:

  • Awarded for Most Admired Fashion Brand of the Year at India Fashion Forum.
  • Awarded as Most Admired Fashion Brand of the Year (FOOTWEAR) at 19th Annual IMAGES Fashion Awards.
  • Awarded for Outstanding Sales in 2017-18 for Hush Puppies.
  • Named the Champion in Supplier Development at 11th CII National Competitiveness and Cluster Summit, 2018.
  • Named the 2018 Reader’s Digest Most Trusted Brand.

2019-20:

  • Best Customer Retail Experience’2019 Awarded by Customer Fest Awards.
  • Most Admired Fashion Brand of The Year (Footwear)’ 2019 Awarded by Images Fashion Awards.
  • Most Influential Brand of The Year’2019 Awarded by Images Fashion Awards.
  • Best Innovation in Retention Strategy’2019 Awarded by RAI.
  • Silver Kaizen for ‘5S & Safety’ Awarded at 12th CII National Competitiveness & Cluster Summit 2019.
  • Marquee 2019 Award by AdClub.
  • Winner ‘Zero Defect Manufacturing’ Case Study Awarded at 12th CII National Competitiveness & Cluster Summit 2019.
  • Recognition for ‘OEM Initiative For Supplier Development’ Awarded at 12th CII National Competitiveness & Cluster Summit 2019.
  • Winner ‘Cluster Approach On Supplier Development’ Awarded at 12th CII National Competitiveness & Cluster Summit 2019.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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