Bata India: Investor confidence rises after better-than-expected Q3 numbers

In Q3, net revenues grew 15.5 per cent year-on-year (YoY) to Rs 778.7 crore, against expectations of Rs 743 crore

The stock of footwear major Bata India surged about 27 per cent in the past three months and hit its 52-week high on Wednesday, before closing at Rs 1,271.4 apiece, up 6.9 per cent. 
 

The stock also outperformed the BSE FMCG index that has risen a meagre 0.9 per cent in the past three months. Factors such as improving earnings visibility have turned investors bullish.

Better-than-expected December quarter (Q3) numbers, announced on Tuesday, reinforced investor confidence about the company’s prospects. Thus, the stock — trading at 47 times its FY20 estimated earnings — should see good upsides from current levels,