Get technical stocks tips totally free, which are technically analyzed by our expert. And also get "Free Technical Analysis Courses" on this blog.
Monday, June 25, 2012
Buy stocks of Bata India; target of Rs 1008
"Bata India Ltd. (BIL) focused on premium products and sacrificed volume, which grew by a mere 1.1% in CY11. It has started focusing again on volume and as a result, volume grew 14% in 1QCY12. As per the management, volume growth is expected to remain in double-digits in CY12. Strong volume growth along with higher realisation (due to better product mix) should result in revenue growing 20.0-25.0% as against our estimate of 19.7% in CY12E. Revenue has already grown by a robust 30.6% in 1QCY12. The management is confident of doubling its revenue in the next four-five years."
"BIL opened ~67 new outlets (including Hush Puppies stores) in 1QCY12. It set up ~25 more stores in 2QCY12 and new store addition has already touched ~92 in 1HCY12, which is expected to be ~150-170 by the end of CY12. Of the total 146 outlets opened in CY11, around 53% were opened in 2HCY11, which resulted in high inventory and lower revenue from these outlets in CY11. Currently, BIL is front-loading the setting up of new outlets and out of the total target of ~150-170 outlets planned in CY12, it has already opened ~92 outlets in 1HCY12. BIL has started bar-coding its products and currently 60-70% of its products are bar-coded. As a result, BIL would be able to report healthy revenue growth and also control its inventory in CY12. BIL plans to incur a capex of Rs1,000mn - ~Rs700mn in retail and ~Rs300mn in upgrading its manufacturing facility - in CY12E."
"Footin, owned by BSO (Bata Shoe Organization), is very popular in Thailand, Bangladesh etc, catering to college-going youth in the range of 15-25 years. BIL launched Footin in India in 1QCY12, with its USP being contemporary designs at an affordable price of Rs500-700/pair. In order to de-link Bata’s brand image, BIL is setting up exclusive Footin outlets of 1,000-1,500 sq ft. It has already opened nine Footin outlets till now in Delhi and Mumbai, where the response has been excellent. Currently, the exercise is more of a trial and if the response stays buoyant, BIL plans to aggressively open Footin outlets in the next two-three years. BIL is also very bullish on kids and women segments and is looking at launching new brands, either BSO-owned or strong in-licensed brands, in India."
Subscribe to:
Post Comments (Atom)
-
Lupin’s Q2FY17 revenues were in-line with our estimates. Revenues grew by 32% YoY to INR 42.1 bn (as compared to our estimate of INR 41.9 b...
-
Volume grew by 4.2% QoQ, best in last 12 quarters. The company expects strong volume momentum to continue despite the mixed view on clie...
-
Neeraj Deewan, Quantum Securities told CNBC-TV18, “I would not really buy metals right now because I need to get lot more clarity regard...
No comments:
Post a Comment