Recent Price Movement and Market Context
On 16 Feb 2026, Bata India’s share price declined by 2.68% during the trading session, hitting an intraday low of Rs.821.55. This level represents the lowest price the stock has traded at in the past year, down sharply from its 52-week high of Rs.1,376.55. The stock has been on a losing streak for four consecutive days, cumulatively falling by 9.92% over this period. This underperformance is notable given that the broader Sensex index recovered strongly after a negative start, closing 0.36% higher at 82,923.32, just 3.9% shy of its own 52-week high of 86,159.02.
Bata India’s decline contrasts with the market’s positive momentum, where mega-cap stocks led gains. The stock also underperformed its sector by 1.9% today, indicating sector-specific and company-specific factors weighing on investor sentiment.
Technical Indicators Highlight Bearish Trends
From a technical perspective, Bata India is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad-based weakness across short, medium, and long-term technical indicators signals persistent selling pressure and a lack of upward momentum. Such positioning often reflects cautious market outlooks and can influence trading behaviour negatively.
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Financial Performance and Profitability Metrics
Bata India’s recent financial results have contributed to the subdued market response. The company reported flat results for the December 2025 half-year period, with profit after tax (PAT) declining by 22.72% to Rs.91.85 crore. This contraction in profitability has been a key factor in the stock’s negative trajectory over the past year.
Return on Capital Employed (ROCE) for the half-year stood at 13.34%, which is the lowest recorded in recent periods. This metric is critical as it reflects the efficiency with which the company utilises its capital to generate earnings. Additionally, the debtors turnover ratio has decreased to 21.22 times, indicating a slower collection cycle compared to previous periods.
Despite these challenges, Bata India maintains a relatively strong management efficiency profile, with a ROCE of 15.35% noted in other assessments. The company’s ability to service debt remains robust, supported by a low Debt to EBITDA ratio of 0.97 times, which suggests manageable leverage levels.
Long-Term Growth and Valuation Considerations
Operating profit growth has been healthy over the longer term, with an annualised increase of 41.77%. This indicates that while recent periods have been difficult, the company has demonstrated capacity for expansion in its core earnings. The stock’s valuation metrics also reflect an attractive profile, trading at an enterprise value to capital employed ratio of 5, which is below the average historical valuations of its peers in the footwear sector.
However, the stock’s one-year total return of -36.82% starkly contrasts with the Sensex’s positive 9.18% return over the same period. This consistent underperformance extends over the last three years, with Bata India lagging behind the BSE500 index in each annual period. Such a trend highlights ongoing challenges in regaining investor confidence and market share relative to broader benchmarks.
Shareholding and Market Sentiment
Institutional investors hold a significant stake in Bata India, accounting for 35.49% of the shareholding. This level of institutional ownership suggests that the stock is closely monitored by investors with substantial analytical resources. The current Mojo Score of 44.0 and a Mojo Grade of Sell, upgraded from a previous Strong Sell on 11 Nov 2025, reflect a cautious stance based on fundamental and technical factors.
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Summary of Key Concerns
The stock’s fall to Rs.821.55 represents a culmination of several factors: subdued profit growth, declining returns on capital, and a technical downtrend across all major moving averages. The company’s performance has been flat in recent reporting periods, with profitability metrics showing contraction. Additionally, the stock’s consistent underperformance relative to the Sensex and BSE500 indices over multiple years underscores persistent challenges in market positioning.
While the company maintains strengths in management efficiency and debt servicing capacity, these have not yet translated into positive momentum in the share price. The current market environment, with broader indices recovering and mega-cap stocks leading gains, further accentuates the relative weakness of Bata India’s stock.
Market Outlook and Valuation Context
Despite the recent decline, Bata India’s valuation metrics suggest it is trading at a discount compared to its historical peer averages. The company’s operating profit growth over the longer term remains a positive indicator of underlying business potential. However, the recent financial results and technical indicators have weighed on the stock’s performance, leading to the new 52-week low.
Investors and market participants will continue to monitor the company’s financial disclosures and market developments closely, given the stock’s significant underperformance and the broader sector dynamics.
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