By Aditya Raghunath
Investing.com -- Shares of footwear maker Bata (NS: BATA ) have fallen over 4% in the last two trading sessions. The shares are currently trading at Rs 1,528. The company reported results for the third quarter of FY21, ended December 2020.
The numbers weren’t great with revenues falling 26% to Rs 615 crore compared to the corresponding quarter in FY20. Profits fell by a whopping 78% to Rs 26 crore. After all, when people have spent most of 2020 sitting at home there’s not going to be a lot of demand for footwear. However, Bata has seen significant improvement in the October-December quarter compared to the previous quarter when it reported a loss of Rs 44 crore.
This shows that demand is coming back as the economy reopens and people head back to work as offices open. Bata says sales have recovered to 74% of pre-COVID levels. The company has resumed production at 100% of pre-COVID levels and this is a good sign of demand recovery.
Brokerage firm Sharekhan has recommended a buy on Bata with a price target of Rs 1,765. The company is increasing its digital footprint and around 15% of Q3 sales came from the Bata website and online marketplaces, plus other initiatives like Bata ChatShop, Bata Home Delivery, and Bata Store on Wheels. IDBI Capital has also recommended a buy on the stock with a price target of Rs 1,745.
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Yes. This is correct. Stock is at low level since a year now. Now its time for move on. It is undoubtable a market leader. Coming festivals and marriage season will be great factor for this company.Like 1