04-Nov-2026 08:22:49
CITI on Bata India ; Sell, TP cut to Rs 550 from Rs 675
Revenue grew 7.5% YoY (1% below Citi est) on a low base (-4.3%) partly affected by shift in festive period. Profitability was weak as well with EBITDA declining 1% YoY (21% below Citi est) & adj PAT declining 12% YoY (65% below Citi est) Pre-IND AS 116 EBITDA margin was 6% in 1HFY27 vs 7.5% in 1HFY26 (16.0% in 1HFY20). Adj for one-off expenses, EBITDA grew by 4% YoY (18% below Citi est). Other highlights: growth was impacted due to shift in festive season partly offset by higher ASP. Bata India revenue growth and profitability have been relatively weak over the past few years and we see scope for further de-rating Cut FY27-28E EPS est by 17% & target P/E multiple to 25x Sep’28E (from 28x Dec’27E) factoring weak growth and profitability.
BATA INDIA LTD