According to Bonanza, investors can buy Bata India on dips near Rs 70 level i.e. about 7.4X PE, for a target of Rs 94.
Bonanza’s report:
Bata India is the largest branded Footwear manufacturer and retailer in India. The company has strong brand image. In view of the focus on strengthening of the retail network, it is expected that the sales would expand. Bata is expected to report an EPS of Rs 9.36 in CY 09. Investors can buy on dips near Rs 70 level i.e. about 7.4X PE, for a target of Rs 94 i.e. 10X PE on CY 09 estimates. In view of the current state of the market, the investors should not rush into buying BUT accumulate over period once market stabilizes.
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