Bata is a multinational footwear brand that came to India in 1931 under the name Bata Shoe Company Private Limited. The brand grew consistently from then and went public in India in 1973. During this time, the company became Bata India Limited following an official name change. From then until now, the company has established a large network in India with over 1,375 stores and 30,000 dealers.
As of 23 July 2018, the company had a market capitalisation of about Rs. 11,579 crore.
Bata India’s Wealth and Recent Performance
- According to the unaudited financial results for the first quarter of the financial year 2018–2019, the total income of the company was Rs.8,092.59 million. The total income for the previous quarter was Rs.6,460.21 million. Thus, an increase of Rs.1,632.38 million was noticed.
- For the financial year ending in March 2018, the audited financial results indicate that the total income for that year was Rs.26,871.62 million. This was an increase from the total income recorded in the previous financial year at Rs.25,438.87 million.
- The profit for the period spanning the first quarter of the FY 2018–2019 was Rs.825.53 million. The profit for the previous quarter was Rs.520.84 million. Thus, a profit increase of Rs.304.69 million was achieved in the first quarter of FY 2018–2019.
- Notably, the profit for the period spanning the previous financial year, 2017–2018, was Rs.2,235.78 million. This was a solid increase from the profit recorded the previous financial year at Rs.1,587.48 million.
- The total assets of the company increased from Rs.19,225.97 million in the financial year ending March 2017 to Rs.21,448.66 million in the subsequent financial year ending March 2018.
Bata India Stock Trends in 2018
- Bata India’s stock began with a price of about Rs.755 in January 2018. This was followed by a very slight increase that preceded a dip in prices. Prices fell until the first week of February 2018 to about Rs.681.
- After this, the stock began a slow recovery and gained to settle over Rs.700. The stock remained at over Rs.700 till about mid-March 2018. After about four days, the stock regained a price over Rs.700. The stock did not drop below Rs.700 until July 2018.
- The stock began April 2018 at about Rs.753. Then, the stock continued on an upward trajectory that led to the stock briefly breaching the Rs.800 mark twice in the same month.
- In May 2018, the stock began at over Rs.800 but dipped well below that mark through the course of the month.
- In June 2018, the stock began trading at about Rs.765. After mid-June, the stock began recovering and an upward tick was noticed. This was followed by the stock breaching the Rs.800 mark again around June 18, 2018. The stock remained well over Rs.800 for the rest of the month, ending the month at about Rs.859.
- The stock began with a slight dip in July 2018 but had begun gaining by 20th of July to breach the Rs.900 mark by July 23, 2018.
Bata India Stock Trends in 2016 and 2017
- In January 2016, the Bata India Stock opened at about Rs.515 and in December 2016, the stock closed at about Rs.450.
- While the stock opened at over Rs.500 in January 2016, it dropped below the Rs.500 mark by the first week. The stock fluctuated between Rs.450 and Rs.500 for the rest of January. This trend continued till the end of February 2016. Beginning in March 2016, the stock began steadily gaining, breaching the Rs.500 mark again by about March 22, 2016.
- The upward trend of the stock continued from March 2016 and carried over into April 2016 with the stock breaching the Rs.550 mark by the last week of April 2016. The stock sustained a price of over Rs.550 for the month of May 2016 with only a brief dip. The stock recovered again to close at about Rs.572 by the end of May. While the stock began trading strongly in June 2016, it did not manage to sustain the high. The stock even once briefly dipped to a low of about Rs.522. The stock recovered again but did not manage to sustain the growth enough to reach above Rs.550 again at the end of the month.
- In July 2016, the stock recovered strongly, to breach the Rs.550 mark and stayed above that for the rest of the month. This month saw a sustained growth in prices, with the stock even breaching the Rs.600 mark by the end of the month. August 2016 saw a steep dip in prices with the stock going below the Rs.550 mark again. After August, the stock continued on a price drop till December 2016. In September, the stock opened at about Rs.537. After that, the stock saw a steady downward tick, dropping below the Rs.500 mark. It closed for the month at about Rs.490.
- The stock seemed poised to recover in October 2016, but it only briefly breached the Rs.500 mark before dropping below it again. It ended for the month at about Rs.483. In November 2016, the stock dropped even lower, falling well below the Rs.450 mark. The stock closed for November at about Rs.415. In December 2016, the stock seemed to begin a path to recovery, with the stock steadily gaining a few rupees at a time finally closing for the month at about Rs.450.
- In January 2017, the stock began at about Rs.447 and closed in December 2017 at about Rs.747. During the majority of the year, the stock appeared to be on a strong growth path in contrast to its performance in 2016.
- After beginning the year at about Rs.447, the Bata India stock began to rise. It breached the Rs.450 mark and stayed well above it for the rest of the month. But the stock did not breach the Rs.500 mark during this month. The stock closed at about Rs.479 for the month. The stock opened at a higher rate in February 2017 at about Rs.489 which was a ten rupee increase over the previous day. This kind of increase caused the stock to breach the Rs.500 by the end of the first week of February. The stock fluctuated between Rs.490 at the lower end and Rs.510 at the higher end for the rest of the month. Beginning March 1, 2017 until about March 10, 2017, the stock continued to fluctuate the same way it had the previous month. After that, the stock gained steadily for the rest of the month. During this month, the stock breached the Rs.550 mark again and closed at about Rs.567 by the end of March.
- During April 2017, the stock continued to stay above the Rs.550 mark but there were not many steep fluctuations. In fact, the highest the stock reached was about Rs.584. In May, the prices reduced again with the stock dropping gently until about the second week of March. By the third week, the stock had dropped to below Rs.550 again. The stock did not regain its position over the Rs.550 mark for the rest of the month. The stock closed for the month at about Rs.545. June 2017 also saw a slight increase to over Rs.550 but that soon disappeared as the stock dipped again. It closed for the month at about Rs.529.
- The stock again gained a bit during the first week of July 2017, breaching the Rs.550 mark again. On July 6, 2017, a final 70% divided was announced. The stock price reduced a little after that but did not go below the Rs.550 mark for the rest of the month. August 2017 was a great month for Bata India with the stock breaching the Rs.600 mark within the first week of the month and achieving a high of about Rs.641 by the end of the first week. The stock then continued to rise steadily to close for the month at about Rs.680. In September 2017, the stock opened at about Rs.684, a gain of four rupees over the previous day. This gain period continued for the month of September with the stock breaching the Rs.700 mark. The stock remained at over Rs.700 for another two weeks but dipped again to end the month at about Rs.689.
- In October 2017, the stock began at about Rs.689 and saw a sustained increase in prices with the stock breaching the Rs.700 mark again. Briefly on October 18, 2017, the stock breached even the Rs.800 mark. However, the stock dipped again the very next day. This was followed by a period of low growth but the stock ended the month at over Rs.800. The stock began at over Rs.800 in November, but did not sustain the price for long. This was followed by a gentle dip that continued till the end of the month. The stock ended the month at about Rs.734. In December 2017, the stock dipped even further but eventually regained enough to close for the month at about Rs.747.
Should You Invest in Bata India?
- The company, Bata India Limited, is part of the larger Bata Shoe Organization which has a solid business presence in more than 70 countries around the world.
- Worldwide, the company serves over a million customers each day.
- In the final quarter of the financial year ending March 2017, Bata reported a 27% increase in net profit. Showcasing similar growth, the standalone net profit of the company rose 36.60% in the quarter ending June 2018.
- The company has received a number of awards in 2013, 2014, and 2017 including Brand Equity’s Top Most Trusted Brands award.
- In order to take advantage of the popularity of cricket in India, the company has taken on board Smriti Mandhana, from the Indian Women’s Cricket Team in order to advertise Power which is the name of their sports brand.
- In order to better connect with the Indian masses, the company also has associated with actresses Diana Penty and Kriti Sanon.
- The company signed Manushi Chillar, who was Miss India 2017, in order to advertise their collection for the festive season.
- Flagship stores in India have been redesigned to follow a European theme in order to appeal to a wider demographic.
- In FY 2017–2018, the company increased its presence in India by adding over 100 retail stores and revamped close to another hundred. The company is planning to establish 100 more retail and 50 more franchise stores in the FY 2018–2019.
- The company is planning to invest almost Rs.1 billion in India in the FY 2018–2019 as part of an aggressive expansion strategy. The money will go towards establishing new stores and refurbishing some old store locations.
- While all of these indicate that the company appears to be on a path to doing well financially for itself and its shareholders, it would be best to invest in the company’s stocks after further research based on personal interests, financial commitments, and risk appetites.
The company Bata India Limited specialises in footwear and has a large presence in India. It manufactures and sells footwear and is one of the biggest footwear companies in India to do so. The company is part of the bigger and global Bata Shoe Organization. Bata India Limited has four manufacturing units and 1,375 retail stores all over India. Its corporate office is located in Kolkata.
History of the Company
The Bata Shoe Organization begun as “The T&A Bata Shoe Company” in 1894 in present-day Czech Republic. It was founded by Tomáš Ba?a. Antonin, his brother, and Anna, his sister, helped him in this endeavour. The company made its initial foray into India in 1931 as the Bata Shoe Company Private Limited. Operations began in 1932 in a place called Konnagar which is located near Calcutta (Kolkata). Slowly, the company developed a township around the place which was known as Batanagar. This manufacturing facility also has the distinction of having received the ISO : 9001 Certification. Eventually, in 1973, the company went public. The company then changed its name to Bata India Limited. Currently, the company has over 1,375 store locations in India.
Management of the Company
The list of people who comprise the Board of Directors is as follows:
Mr. Uday Khanna - Chairman and Independent Director
Mr. Rajeev Gopalakrishnan - Managing Director
Mr. Sandeep Kataria - Whole-time Director and Chief Executive Officer
Mr. Ram Kumar Gupta - Director Finance and Chief Financial Officer
Mr. Christopher Kirk - Non-Executive Director
Mr. Shaibal Sinha - Non-Executive Director
Ms. Anjali Bansal - Independent Director
Mr. Ravindra Dhariwal - Independent Director
Mr. Akshay Chudasama - Independent Director
Bata India Limited Listings in NSE, BSE, and Other Indices
Bata India Limited’s stock is traded on both the BSE and the NSE.
The following are the codes for the listings:
IND: Leather/Synthetic Products
ISIN Code: INE176A01028
The stock is also listed on the Cochin Stock Exchange Limited, Madras Stock Exchange Limited among other exchanges.
The company is part of indices like the Nifty 200, Nifty 500, S&P BSE 500 among other indices.
The registered office address of Bata India Limited is:
27B, Camac Street, First Floor, Kolkata - 700016, West Bengal
Telephone: +91 33 2301 4400
Fax: +91 33 2289 5748
Stocks vs. Mutual Funds: here's what we recommend
Stock market investments require a lot of research and knowledge. They do not generally offer any tax benefits and are regarded as high-risk investments. Hence,it is crucial to have a diversified portfolio. At Bankbazaar, we encourage our readers to invest on mutual funds.It doesn't require a lot of knowledge and equity linked mutual fund schemes offer tax benefits. Additionally, since mutual funds comprise stocks from multiple companies, they help in building a diversified portfolio.