Bata India Ltd. Stock Hits 52-Week Low at Rs.788.6 Amidst Continued Downtrend

Recent Price Movement and Market Context

On 27 Feb 2026, Bata India’s share price touched Rs.788.6, the lowest level seen in the past year, down from its 52-week high of Rs.1,343.95. This decline comes amid a broader negative trend in the Sensex, which after a flat opening, fell by 455.73 points or 0.59% to close at 81,764.75. While the S&P Bse Oil Gas index hit a new 52-week high on the same day, Bata India’s stock performance remained subdued, trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning underscores the stock’s current bearish momentum.

Over the last year, Bata India has delivered a total return of -38.32%, significantly underperforming the Sensex, which posted a positive return of 9.57% over the same period. The stock has also consistently lagged behind the BSE500 index in each of the past three annual periods, highlighting a trend of relative underperformance within the broader market.

Financial Performance and Key Metrics

Bata India’s latest financial results for the six-month period ending December 2025 showed a decline in profitability, with the Profit After Tax (PAT) falling by 22.72% to Rs.91.85 crores. This contraction in earnings has contributed to the subdued investor sentiment and pressure on the stock price.

The company’s 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 declined to 21.22 times, indicating a slower collection cycle compared to previous years. These metrics reflect some challenges in capital efficiency and working capital management.

Despite these headwinds, Bata India maintains a relatively strong management efficiency with a ROCE of 15.35% reported in other periods, suggesting that the company retains the ability to generate returns on its capital base under certain conditions. The company’s debt servicing capacity remains robust, with a low Debt to EBITDA ratio of 0.97 times, indicating manageable leverage levels.

Valuation and Market Position

From a valuation standpoint, Bata India is trading at an attractive level relative to its peers, with an Enterprise Value to Capital Employed ratio of 4.7. This discount to historical peer valuations may reflect the market’s cautious stance given the recent earnings decline and price weakness.

Operating profit growth remains a positive aspect, having expanded at an annual rate of 41.77%, which points to underlying business strength despite the recent earnings contraction. However, the overall profit decline of 22.4% over the past year has weighed on the stock’s performance.

Institutional investors hold a significant stake in Bata India, with 35.49% of shares owned by these entities. This level of institutional holding typically indicates confidence in the company’s fundamentals, even as the stock price navigates a challenging phase.

Sector and Industry Context

Bata India operates within the footwear industry, a sector that has experienced varied performance across companies and market cycles. The stock’s recent underperformance contrasts with some sector peers who have shown resilience or growth, underscoring the differentiated challenges faced by Bata India.

The company’s Mojo Score currently stands at 44.0, with a Mojo Grade of Sell as of 11 Nov 2025, an upgrade from a previous Strong Sell rating. This reflects a modest improvement in the company’s overall assessment but still indicates caution in the stock’s outlook.

Technical Indicators and Trading Patterns

Technically, Bata India’s share price trading below all major moving averages signals a bearish trend. The stock’s four-day consecutive decline and underperformance relative to the sector’s movement today suggest persistent selling pressure. The day’s change of -0.68% aligns with the sector’s overall performance, indicating that the stock’s weakness is not isolated but part of broader market dynamics.

Comparatively, the Sensex is trading below its 50-day moving average, although the 50-day average remains above the 200-day average, indicating mixed signals for the broader market. Bata India’s relative weakness within this environment highlights company-specific factors influencing its price trajectory.

Historical Performance and Long-Term Trends

Over the last three years, Bata India has consistently underperformed the benchmark indices, including the BSE500. This trend is reflected in the stock’s negative returns and subdued financial metrics, suggesting structural challenges in maintaining competitive growth and profitability.

While the company has demonstrated healthy long-term operating profit growth, the recent decline in net profits and key efficiency ratios has contributed to the stock’s downward pressure. The gap between operating profit growth and net profit contraction points to factors such as increased costs or other financial impacts affecting the bottom line.

Summary of Key Data Points

- New 52-week low: Rs.788.6 (27 Feb 2026)
- 52-week high: Rs.1,343.95
- One-year return: -38.32%
- Sensex one-year return: 9.57%
- PAT (latest six months): Rs.91.85 crores, down 22.72%
- ROCE (half-year): 13.34%
- Debtors Turnover Ratio (half-year): 21.22 times
- Debt to EBITDA ratio: 0.97 times
- Enterprise Value to Capital Employed: 4.7
- Institutional holdings: 35.49%
- Mojo Score: 44.0 (Grade: Sell, upgraded from Strong Sell on 11 Nov 2025)

The combination of these factors paints a comprehensive picture of Bata India’s current market position, highlighting the challenges reflected in its share price decline to a 52-week low.

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