Bata India re-rating hinges on strong show by revenue spinning premium biz

Analysts believe Bata's margin and earnings growth would see relatively more pressure than players like Relaxo Footwears

As the economy gets unlocked in phases, the sentiment towards discretionary sectors is also likely to improve. 

However, for footwear, the product mix is playing a key role. Analysts believe the premium footwear segment will see delayed recovery due to muted demand and, in turn, will put a lid on earnings. Therefore, after gaining 9.4 per cent over a month till September 3, the stock of Bata, which has a higher share of the premium footwear portfolio, has shed about 8 per cent in the past five trading sessions. In comparison, its peer Relaxo Footwears and the BSE Sensex are down