Chart Analysis for BATA INDIA (Weekly Timeframe)Hello, Everyone. I hope you all will be doing well in your life and investing. Here I have brought a stock that is going to break its consolidation. Boarding Allowance & Travel Allowance—(Surprisingly Bata) is the name of the stock. CMP is 1460. Strong support at 1300-1340. Price is consolidating between 1000 and 2000 from August 2018. If it crosses 1550 and closes above it on a weekly basis, then there's no turning back. It may break 2000 by Aug 2025 after 7 years. And if it breaks 2000, then the chances of upside are 2200 and 2700 to 3500 as per Fibbo. The risk-to-reward looks very good. With 1300 SL, the target is 2000+. Just an assumption. Please do your research. Not a suggestion of buying.
Source: Screener.in
Bata India Ltd
About
Bata India is primarily engaged in the business of manufacturing and trading of footwear and accessories through its retail and wholesale network.
Key Points
Parentage
As of June 2024, the Bata Corporation holds a 50% stake in the company. Founded in 1894 in the Czech Republic, Bata Corporation is the world's leading shoemaker by volume having a retail presence of over 5,300 shops in more than 70 countries across 5 continents, and operates 21 production facilities in 18 countries.
Market Leadership
The company is the largest footwear retailer and leading manufacturer in the Indian footwear industry with 1,860+ retail stores across ~1,500 towns including franchisees in FY24 growing from ~1,700 stores across ~890 towns in FY20. It has an overall retail space of 3.68 mn sq ft.
Manufacturing Facilities
The company has 4 manufacturing units at Batanagar (Kolkata), Bataganj (Bihar), Peenya (near Bangalore), and Hosur (Tamil Nadu). It has a manufacturing capacity to produce 21 Mn Footwear Per Annum.
Brand Portfolio
Bata, Power, Marie Claire, North Star, Naturaiser, Scholl, Bata Comfit, Weinbreneer, Bata Comfit, Hush Puppies, Power, etc.
Technical Collaboration with GFS,Singapore
The company entered into a 10-year agreement with Global Footwear Services Pte. Ltd. As per this agreement, Bata receives guidance, training of personnel, and services from GFS in connection with R&D, marketing, brand development, footwear technology, testing & quality control, etc. for which the company paid a fee of Rs. ~50 Cr in FY24 (~1.5 % of revenues).
Shift to Asset Light Business Model
The company focuses on an asset-light model of operations by opening more franchise stores compared to company-owned and company-operated (COCO) stores and remodeling the existing ones. As of FY24, it has a network of 500+ franchise stores and 1,320+ COCO stores compared to ~170 franchises and ~1,390 COCO stores in FY20. The company renovated 180+ stores in FY24.
Non-Retail Business
The non-retail business division comprises Multi-Brand Outlets, Key Accounts, industrial and institutional business divisions, and exports. Its MBO network has been expanded to 1500+ towns. 700+ enterprises provide Bata shoes to their Employee/Customers through its B2B Division.
E-commerce Footprints
The company has one of the largest Omni-network (home delivery) in India covering 1700+ stores. This channel contributed to 1+ million pairs of sales in FY24. Its e-commerce marketplaces business registered a growth of 41% YoY and Bata.com registered a growth of 31% YoY in FY24.
Diversifying Portfolio
In FY24, the company launched its First Power EBO store in Noida, with plans to add 10 new stores by Q3 FY25. It also launched Power apparel for athleisure in India, as of FY24, Power apparel is present in 70 stores, and plans to expand it to 100 stores by Q3 FY25.
The company tied up with ABG brands in 2023 and launched Nine West, a premium brand during Q4 FY4 by launching 40 stores and it is planning to add 30 new stores by the end of Q3 FY25. It also expands Floatz Kiosk from 11 stores in FY24 to 30 in Q3 FY25. Sneaker Studios implemented in 698 stores.
Focus
The company’s business strategy is focused on premium brands like Hush Puppies, Power, Nordstar, Comfit, etc. which contribute 40% of revenue as of FY24.
This is just to boost my confidence. No Suggestions for buying.
Disclosure: I am not SEBI registered. The information provided here is for educational purposes only. I will not be responsible for any of your profit/loss with these suggestions. Consult your financial advisor before making any decisions.
