Bata India Ltd. Stock Falls to 52-Week Low of Rs.800.15

Stock Price Movement and Market Context

On 24 Feb 2026, Bata India’s share price declined by 1.11%, closing at the new low of Rs.800.15. This level marks a significant drop from its 52-week high of Rs.1,376.55, representing a decline of approximately 41.9%. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.

The broader market context has also been challenging. The Sensex opened 242.12 points lower and closed down 479.31 points at 82,573.23, a fall of 0.87%. Despite this, the Sensex remains 4.34% below its 52-week high of 86,159.02, with the 50-day moving average still positioned above the 200-day moving average, indicating some underlying market resilience. However, Bata India’s performance has lagged significantly behind the benchmark, with a one-year return of -39.69% compared to the Sensex’s positive 10.90%.

Financial Performance and Key Metrics

Bata India’s recent financial results have contributed to the stock’s subdued performance. The company reported flat results for the December 2025 quarter, with profit after tax (PAT) for the latest six months at Rs.91.85 crore, reflecting a decline of 22.72% compared to the previous period. This contraction in profitability has weighed on investor sentiment.

Return on Capital Employed (ROCE) for the half-year stood at 13.34%, marking the lowest level in recent periods. Additionally, the debtors turnover ratio has decreased to 21.22 times, indicating a slower collection cycle relative to historical levels. These metrics highlight some areas of concern regarding capital efficiency and working capital management.

Long-Term Performance and Valuation Considerations

Over the last three years, Bata India has consistently underperformed the BSE500 index, with annual returns falling short of the broader market. The stock’s one-year return of -39.69% further emphasises this trend of underperformance. Despite this, the company maintains a relatively attractive valuation profile, with an enterprise value to capital employed ratio of 4.8, which is lower than the average historical valuations of its peers in the footwear sector.

Operating profit growth remains a positive aspect, having increased at an annual rate of 41.77%, suggesting some underlying business strength. The company’s ROCE of 15.35% also indicates a degree of management efficiency in generating returns from capital employed. Furthermore, Bata India’s debt servicing capability is robust, with a low debt to EBITDA ratio of 0.97 times, reflecting prudent financial leverage.

Institutional Holdings and Market Sentiment

Institutional investors hold a significant stake in Bata India, accounting for 35.49% of the shareholding. This level of institutional ownership typically reflects confidence in the company’s fundamentals and governance, although it has not prevented the recent decline in share price. The company’s Mojo Score currently stands at 44.0, with a Mojo Grade of Sell, an upgrade from a previous Strong Sell rating on 11 Nov 2025, indicating some improvement in the assessment of the stock’s prospects.

Summary of Key Concerns

The stock’s decline to Rs.800.15 is a reflection of several factors, including subdued profit growth, declining return metrics, and a weaker debtors turnover ratio. Bata India’s consistent underperformance relative to the Sensex and BSE500 over multiple years has contributed to a cautious market stance. The trading below all major moving averages further underscores the current bearish trend in the stock price.

While the company demonstrates strengths in management efficiency and debt servicing, these have not yet translated into a reversal of the stock’s downward trajectory. The market’s broader weakness, as seen in the Sensex’s decline, has also compounded the pressure on Bata India’s shares.

Market Position and Sectoral Context

Bata India operates within the footwear industry, a sector that has faced varying demand patterns and competitive pressures. Despite these challenges, the company’s operating profit growth rate of 41.77% annually indicates resilience in its core business operations. However, this has not been sufficient to offset the impact of declining profitability and valuation pressures on the stock price.

Conclusion

The fresh 52-week low of Rs.800.15 for Bata India Ltd. highlights the ongoing challenges faced by the company in the current market environment. The stock’s performance remains subdued relative to benchmarks, with key financial indicators signalling areas requiring attention. While certain operational metrics and valuation factors remain favourable, the overall market sentiment and recent financial results have contributed to the stock’s decline to this significant price level.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today