Stock To Sell: After the continuous fall in the shares of footwear company Bata India Ltd, now even market experts seem to be scared. Global brokerage firm Goldman Sachs has reduced its ‘Neutral’ rating on Bata India Ltd shares to ‘Sell’. It has also reduced its target price from ₹ 1,470 to ₹ 1,300. Let us tell you that today on Tuesday, Bata shares were trading at Rs 1,407 in intraday. Let us tell you that Bata shares are in negative 15% in the last one year and 14% so far this year.
What did the brokerage say?
Goldman Sachs has cut Bata’s earnings per share (EPS) estimates for fiscal years 2025, 2026 and 2027 by 17%, 12% and 12% respectively. The brokerage company does not expect a sharp improvement in Bata’s same-store-sales growth at the moment. Let us tell you that Bata’s same-store-sales-growth has been negative in the last few quarters. The brokerage further wrote in its note that Bata’s EBITDA margin is unlikely to reach the level of FY 2020 even by FY 2027.
what is the detail
Out of the 22 analysts covering Bata India, 10 now have a ‘sell’ rating on the stock, while eight of them have a ‘hold’ rating and only four still have a ‘buy’ recommendation on the stock. At the current price, Bata shares are trading at a one-year forward price-to-earnings multiple of 42.9 times, which is in line with the five-year average price-to-earnings multiple of 44.3 times.
