Bata India Ltd. Stock Hits 52-Week Low at Rs.795 Amidst Continued Downtrend

Stock Price Movement and Market Context

On 25 Feb 2026, Bata India’s share price touched Rs.795, the lowest level recorded in the past year. This decline comes after two consecutive days of losses, during which the stock has fallen by 2.09%. The stock underperformed its sector by 0.48% on the day, trading within a narrow range of Rs.6. Notably, Bata India is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.

In contrast, the broader market has shown resilience. The Sensex opened 304.20 points higher and was trading at 82,694.01, up 0.57%. The index remains within 4.19% of its 52-week high of 86,159.02, supported by strong performances from mega-cap stocks. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, signalling an overall positive trend in the market.

Long-Term Performance and Relative Weakness

Over the last year, Bata India’s stock has delivered a return of -40.60%, significantly lagging the Sensex’s 10.86% gain. This underperformance extends beyond the past year, with the stock consistently trailing the BSE500 index across the last three annual periods. The 52-week high for Bata India was Rs.1,376.55, highlighting the extent of the recent decline.

Financial Metrics and Profitability Trends

The company’s latest financial results reveal a subdued performance. The profit after tax (PAT) for the most recent six-month period stood at Rs.91.85 crore, representing a decline of 22.72% compared to the previous corresponding period. Return on capital employed (ROCE) for the half-year was recorded at 13.34%, the lowest level observed recently. Additionally, the debtors turnover ratio has decreased to 21.22 times, signalling a slower collection cycle.

Despite these figures, Bata India maintains a relatively high management efficiency, with a ROCE of 15.35% noted in other assessments. The company’s ability to service debt remains strong, supported by a low debt to EBITDA ratio of 0.97 times. Operating profit has demonstrated healthy long-term growth, expanding at an annual rate of 41.77%, which contrasts with the recent decline in net profits.

Valuation and Institutional Holding

Bata India’s valuation metrics suggest an attractive entry point relative to its historical averages and peer group. The company’s enterprise value to capital employed ratio stands at 4.8, reflecting a discount compared to the average valuations of its footwear sector peers. This valuation is supported by a ROCE of approximately 13.5%, which remains competitive within the industry.

Institutional investors hold a significant stake in Bata India, with 35.49% of shares owned by such entities. This level of institutional holding indicates a degree of confidence in the company’s fundamentals from investors with extensive analytical resources.

Sector and Industry Positioning

Operating within the footwear industry and sector, Bata India faces competitive pressures that have contributed to its recent price weakness. The company’s market capitalisation grade is rated at 3, reflecting its mid-cap status. The Mojo Score assigned to Bata India is 44.0, with a Mojo Grade of Sell as of 11 Nov 2025, an improvement from a previous Strong Sell rating. This adjustment suggests some stabilisation in the company’s outlook, albeit within a cautious framework.

Summary of Key Concerns

The stock’s decline to Rs.795 is underpinned by several factors: a notable drop in profitability, subdued returns on capital, and a consistent pattern of underperformance relative to benchmark indices. The recent flat financial results and contraction in PAT highlight challenges in maintaining earnings growth. Additionally, the stock’s trading below all major moving averages signals continued pressure from a technical perspective.

Conclusion

Bata India Ltd.’s stock reaching a 52-week low of Rs.795 reflects a period of sustained underperformance amid a generally positive market backdrop. The company’s financial indicators reveal pressures on profitability and returns, while valuation metrics suggest the stock is trading at a discount relative to peers. Institutional ownership remains substantial, indicating ongoing interest from informed investors. The stock’s technical position below key moving averages underscores the challenges it currently faces in regaining upward momentum.

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