Citi has maintained its sell call on Bata India, setting a target price of ₹1,050 per share, implying a 21% downside from the current market price of ₹1,331. The brokerage highlights muted revenue growth, with a compound annual growth rate (CAGR) of only 3.0% over the pre-COVID period, as a major factor for its recommendation.
Despite early festival sales and several initiatives, revenue growth continues to lag, according to Citi. Profitability has also come under pressure, with EBITDA showing a declining trend. Citi further noted that Bata India’s current valuation multiples, at 47x and 40x P/E for FY26 and FY27 respectively, appear expensive, limiting upside potential.
This call reflects Citi’s cautious view on Bata India, given the combination of weak revenue growth, declining profitability, and high valuations.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with a financial advisor before making any investment decisions.
