Stock Price Movement and Market Context
On 19 Jan 2026, Bata India Ltd. recorded its lowest price in the last year at Rs.890, down 1.09% on the day. This decline aligns with the sector’s performance, as the footwear industry has faced headwinds recently. The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent bearish momentum.
The broader market, represented by the Sensex, also experienced a negative session. After opening flat with a minor decline of 75.86 points, the Sensex fell by 487.83 points to close at 83,006.66, down 0.67%. Despite this, the Sensex remains within 3.8% of its 52-week high of 86,159.02. However, the index has been on a three-week losing streak, shedding 3.21% over this period, and is trading below its 50-day moving average, though the 50DMA remains above the 200DMA.
Recent Performance and Financial Metrics
Over the past year, Bata India Ltd. has underperformed significantly compared to the Sensex. The stock has delivered a negative return of 32.01%, while the Sensex has gained 8.35% over the same period. The stock’s 52-week high was Rs.1,425, highlighting the extent of the recent decline.
The company’s financial results have contributed to the subdued sentiment. In the quarter ending September 2025, Bata India reported a 14.92% decline in net sales. Profit before tax excluding other income (PBT less OI) dropped sharply by 89.2% to Rs.6.13 crore compared to the previous four-quarter average. Similarly, profit after tax (PAT) fell by 64.0% to Rs.19.85 crore in the same period. The operating profit to interest ratio also reached a low of 4.28 times, reflecting tighter margins and increased financial pressure.
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Long-Term Underperformance and Market Position
Bata India Ltd. has consistently underperformed the benchmark indices and its peer group over the last three years. The stock has generated negative returns in each of the last three annual periods relative to the BSE500 index. This trend reflects challenges in maintaining growth momentum and market share within the competitive footwear sector.
Despite the recent setbacks, the company maintains a market capitalisation grade of 3 and a Mojo Score of 33.0, with a current Mojo Grade of Sell, downgraded from Strong Sell as of 11 Nov 2025. This indicates a cautious stance on the stock’s near-term prospects based on quantitative assessments.
Financial Strength and Operational Metrics
On the positive side, Bata India exhibits strong management efficiency, with a return on capital employed (ROCE) of 15.35%, signalling effective utilisation of capital resources. The company’s debt servicing capability remains robust, with a low Debt to EBITDA ratio of 0.97 times, suggesting manageable leverage levels.
Operating profit has demonstrated healthy long-term growth, expanding at an annual rate of 44.45%. The company’s valuation metrics also appear attractive, with a ROCE of 13.5% and an enterprise value to capital employed ratio of 5.3, indicating that the stock is trading at a discount relative to its peers’ historical valuations.
However, profitability has declined over the past year, with profits falling by 21.7%, which has contributed to the stock’s negative returns. Institutional investors hold a significant stake of 36.29%, reflecting confidence from entities with greater analytical resources.
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Summary of Key Metrics
To summarise, Bata India Ltd.’s stock has reached a 52-week low of Rs.890 after a sustained period of decline. The company’s financial results have shown contraction in sales and profits, with key profitability ratios weakening in recent quarters. The stock’s performance has lagged the broader market and sector indices over the past year and longer term.
Nonetheless, the company retains strengths in capital efficiency, debt management, and long-term operating profit growth. Its valuation remains below peer averages, and institutional ownership is relatively high. These factors provide a comprehensive view of the stock’s current standing within the footwear sector and the broader market environment.
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