1. At a Glance
Once the go-to shoe for every Indian school kid, Bata India is now trying to reinvent itself as a cool lifestyle brand. But with sales growth flatter than an old flip-flop and a P/E of 67x, is this leather-bound legacy becoming a drag in a fast-fashion world?
2. Introduction with Hook
If you didn’t own a pair of Bata shoes in school, were you even allowed to grow up in India?
Founded in 1931, Bata India is that old-school player now stuck between millennial sneaker hype and Gen Z’s obsession with athleisure. With:
- Over 1,500 stores, 600+ franchisees, and presence in 700+ cities.
- ROE at 15.4%, yet sales growth crawling at 2.68% over 5 years.
- And a P/E of 67, for a company growing slower than its warehouse inventory.
Is it time to walk the talk or just walk away?
3. Business Model (WTF Do They Even Do?)
Bata India is a footwear manufacturer, retailer, and wholesaler.
- 80% of revenue from in-house brands (Bata, Power, Hush Puppies, North Star).
- Distribution split across exclusive retail stores, online, wholesale, and multi-brand outlets.
- Key target market: middle-income consumers with increasing lean towards premium segment.
Strategy? Expand premium offerings + boost franchise reach + reduce manufacturing intensity. Fancy shoes, fancy margins.
4. Financials Overview
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Sales | ₹3,452 Cr | ₹3,479 Cr | ₹3,489 Cr |
| Net Profit | ₹323 Cr | ₹263 Cr | ₹331 Cr |
| EPS | ₹25.13 | ₹20.42 | ₹25.73 |
| OPM | 23% | 23% | 21% |
| ROCE | 20% | 19% | 15% |
| ROE | 18% | 15% | 15.4% |
Flat sales, steady profits, but margins slowly shrinking. Brand might be timeless, but consumer preferences aren’t.
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹1,259 |
| Market Cap | ₹16,161 Cr |
| EPS (FY25) | ₹25.73 |
| P/E | 67.4x |
| Book Value | ₹123 |
| P/B | 10.3x |
| Dividend Yield | 1.51% |
Fair Value Range (based on normalized growth + 5-year mean P/E) = ₹950 – ₹1,150
Current price: Market still paying a brand premium… but growth? Not matching the sole.
6. What’s Cooking – News, Triggers, Drama
- Final Dividend ₹9/share announced
- Store Expansion: Added new format stores, especially franchise outlets to control cost and boost ROCE.
- Inventory Rationalization underway.
- Youth-focused product revamp (hello, white sneakers and Power rebranding).
- E-commerce ramp-up (omnichannel + online sales are up 23% YoY).
But here’s the real kicker: Jun 2025 net profit fell to ₹46 Cr, a 73% QoQ drop.
7. Balance Sheet 💰
| Item | FY25 |
|---|---|
| Equity Capital | ₹64 Cr |
| Reserves | ₹1,511 Cr |
| Borrowings | ₹1,446 Cr |
| Other Liabilities | ₹802 Cr |
| Fixed Assets | ₹1,800 Cr |
| Total Assets | ₹3,823 Cr |
Key Point: Rising debt + flat reserves = not the best combo for a conservative brand. They’ve stepped up the borrowings for store expansion.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹629 Cr | ₹439 Cr | -₹1,011 Cr | ₹57 Cr |
| FY24 | ₹453 Cr | ₹40 Cr | -₹518 Cr | -₹24 Cr |
| FY25 | ₹738 Cr | ₹53 Cr | -₹638 Cr | ₹153 Cr |
Cash flow from ops is solid. But that financing cash flow = dividends + repayments. Capital management under stress.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE | 15.4% |
| ROCE | 15% |
| OPM | 21% |
| Debt-to-Equity | 0.96 |
| P/E | 67.4x |
| Dividend Payout | 74% |
| Inventory Days | 195 |
Stressy: Inventory still bloated.
Sexy: Dividend payout and cash gen.
10. P&L Breakdown – Show Me the Money
| Year | Sales | OPM % | Net Profit | EPS |
|---|---|---|---|---|
| FY23 | ₹3,452 Cr | 23% | ₹323 Cr | ₹25.13 |
| FY24 | ₹3,479 Cr | 23% | ₹263 Cr | ₹20.42 |
| FY25 | ₹3,489 Cr | 21% | ₹331 Cr | ₹25.73 |
Profit margin slipping a bit. EPS recovered in FY25 after a lull in FY24. But sales plateau? Still here.
11. Peer Comparison
| Company | CMP | P/E | ROE | OPM % | Sales (Cr) | PAT (Cr) |
|---|---|---|---|---|---|---|
| Metro Brands | ₹1,179 | 91.6 | 19.6% | 30.2% | ₹2,507 | ₹350 |
| Relaxo | ₹495 | 72.3 | 8.3% | 13.7% | ₹2,790 | ₹170 |
| Campus Active | ₹286 | 72.2 | 17.2% | 15.3% | ₹1,593 | ₹121 |
| Redtape | ₹138 | 45.0 | 23.7% | 16.6% | ₹2,020 | ₹170 |
| Bata India | ₹1,259 | 67.4 | 15.4% | 21.0% | ₹3,489 | ₹331 |
Bata has scale, brand, and balance sheet — but Metro and Redtape are stealing the style game.
12. Miscellaneous – Shareholding, Promoters
| Category | % Holding (Mar 2025) |
|---|---|
| Promoters | 50.16% |
| FIIs | 6.93% |
| DIIs | 29.46% |
| Public | 13.45% |
| Total Shareholders | 2.34 Lakh |
Zero promoter activity in years. No buybacks. No stake changes. Passive play by global parent?
13. EduInvesting Verdict™
Bata India is a premium brand stuck in value-mode execution.
- Great legacy + distribution.
- Mediocre growth.
- Overvalued for a single-digit sales CAGR.
- Inventory control still a challenge.
- Solid dividend, but weak market sentiment.
Verdict: This isn’t a turnaround play. It’s a slow-walk transformation into a lifestyle brand — if it works. If not, it’s just a stylish treadmill.
Metadata
– Written by EduInvesting Team | 15 July 2025
– Tags: Bata India, Footwear Stocks, Consumer Brands, Legacy Companies, Retail, Dividends, Brand Transformation
