Bata India stock rally has more legs; keeps analysts outlook positive

Revival in revenue growth, margin expansion keeping analysts positive

Shares of footwear major Bata India have delivered over 35 per cent returns to investors in the past one year, much ahead of the 11.3 per cent rise in the S&P BSE Sensex. But, analysts still see a 12-18 per cent upside in the next year and a half, owing to a revival in the company’s revenue growth and margin expansion.

During October-December 2017 (Q3), Bata had reported a 6.5 per cent year-on-year (y-o-y) growth in revenue and a 417-basis point (bps) expansion in its Ebitda (earnings before interest, tax, depreciation and amortisation) margin. An increase in share of premium