Update on the Indian Equity Market:
\nOn Friday, Nifty closed 1.1% lower at 11,178. Among the sectoral indices PSU banks (-2.3%), Auto (-2.6%) and Bank (-2.3%) closed lower. Pharma (+1.4%) and Metal (+1.1%) closed on a positive side. Eicher Motors (-7.2%), Tata Motors (-4.8%) and M&M (-3.3%) closed on a negative note. JSW Steel (+2.6%), Coal India (+2.3%), and Sun Pharma (+2.0%) were among the top gainers.<\/p>\n
Excerpts from an interview of Mr. Ashwani Windlass, Chairman, Bata India with Business Line on 13th August 2020:<\/p>\n
\u2022\tThe market place is still uncertain. There are intermittent lockdowns happening and the pandemic is surging in different places.<\/p>\n
\u2022\tConsumers are still not going out as they use to go before and that puts a question in terms of demand.<\/p>\n
\u2022\tCategories like sports, chappals, sandals and casuals are more popular and are moving faster, as opposed to formal footwear.
\n\u2022\tThis behaviour is also justifiable with the current scenario as there are not many social gatherings and people are not going to offices.<\/p>\n
\u2022\tThe company is responding to the trends through offerings in stores and also on digital campaigns.<\/p>\n
\u2022\tMarkets are opening up but the footfall is less. Factories are also working with staff limitations.<\/p>\n
\u2022\tKey metros like Delhi, Mumbai, Chennai are showing positivity.<\/p>\n
\u2022\tThe company is hopeful that after the current \u2018End of Season\u2019 sale, some demand will be back in festival season <\/p>\n
\u2022\tTier-I towns in India, including metros, are more congested, and they witnessed a different level of surge first. Now, the spread is into tier-II or tier-III towns. For example, the tier-II towns in Karnataka and Kerala were doing well before the surge happened there.<\/p>\n
\u2022\tThe impact in smaller cities will not be as much as what it is in the metros that has the bulk of the demand.
\n\u2022\tAt this moment, Bata is supplying what customer wants.<\/p>\n
\u2022\tOn new store openings, Bata adds 50 retail outlets which are company-owned and at least 50 which are franchisee-owned in a normal year. However, this year the company will focus on cash conservation and look for franchisees. <\/p>\n
Consensus Estimate: (Source: market screener & Investing.com websites)
\n\u2022\tThe closing price of Bata India was \u20b9 1,234\/- as of 14-August-2020. It traded at 218x\/40x\/34X the consensus earnings per share estimate of \u20b9 5.6\/30.5\/35.9 for FY21E\/FY22E\/FY23E respectively.
\n\u2022\tThe consensus average target price for Bata India Ltd is \u20b9 1,296\/- which implies a PE multiple of 36x on FY23E EPS of \u20b9 35.9\/-.<\/p>\n
Disclaimer: \u201cThe views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Update on the Indian Equity Market: On Friday, Nifty closed 1.1% lower at 11,178. Among the sectoral indices PSU banks (-2.3%), Auto (-2.6%) and Bank (-2.3%) closed lower. Pharma (+1.4%) and Metal (+1.1%) closed on a positive side. Eicher Motors (-7.2%), Tata Motors (-4.8%) and M&M (-3.3%) closed on a negative note. JSW Steel (+2.6%), […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[375,147],"tags":[512,511],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1286"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=1286"}],"version-history":[{"count":1,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1286\/revisions"}],"predecessor-version":[{"id":1287,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1286\/revisions\/1287"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=1286"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=1286"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=1286"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}