Recent Price Movement and Market Context
On 20 Feb 2026, Bata India’s share price slipped to Rs.816.9, the lowest level in the past year. This decline comes after three consecutive days of losses, during which the stock has fallen by 2.22%. The day’s performance saw the stock underperform its sector by 0.6%, continuing a pattern of relative weakness. Notably, the share price is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling persistent bearish momentum.
In contrast, the broader market has shown resilience. The Sensex, after a negative start, rebounded sharply by 570.41 points to close at 82,842.90, up 0.42%. The index remains within 4% of its 52-week high of 86,159.02, supported by gains in mega-cap stocks. This divergence highlights Bata India’s continued underperformance relative to the benchmark.
Long-Term Performance and Relative Weakness
Over the past year, Bata India’s stock has declined by 35.14%, a stark contrast to the Sensex’s 9.38% gain during the same period. This negative return is compounded by the company’s consistent underperformance against the BSE500 index over the last three annual periods. The stock’s 52-week high was Rs.1,376.55, underscoring the extent of the recent correction.
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Financial Metrics Reflecting Current Challenges
Bata India’s recent financial results have been subdued. 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 crores. Return on Capital Employed (ROCE) for the half-year stood at 13.34%, the lowest in recent periods, indicating reduced efficiency in generating returns from capital invested.
Additionally, the Debtors Turnover Ratio has fallen to 21.22 times, the lowest level recorded, suggesting slower collection cycles or increased receivables. These factors contribute to the cautious market sentiment surrounding the stock.
Operational and Valuation Considerations
Despite the recent setbacks, Bata India maintains certain strengths. The company exhibits high management efficiency, with a ROCE of 15.35% reported in other periods, reflecting its ability to generate returns from capital. Its debt servicing capacity remains robust, supported by a low Debt to EBITDA ratio of 0.97 times, indicating manageable leverage levels.
Operating profit has demonstrated healthy long-term growth, expanding at an annual rate of 41.77%. The stock’s valuation metrics also suggest an attractive entry point relative to peers, with an Enterprise Value to Capital Employed ratio of 4.9, indicating a discount compared to historical averages within the footwear sector.
Institutional Holding and Market Perception
Institutional investors hold a significant stake in Bata India, accounting for 35.49% of share ownership. This level of institutional participation reflects a degree of confidence in the company’s fundamentals, despite the recent price weakness. These investors typically possess greater resources and analytical capabilities to assess company performance and prospects.
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Summary of Key Performance Indicators
To summarise, Bata India’s current market position is characterised by:
- A 52-week low share price of Rs.816.9, reflecting a 35.14% decline over the past year.
- Underperformance relative to the Sensex and BSE500 indices over multiple years.
- Flat half-year financial results with a 22.72% decline in PAT and a low ROCE of 13.34%.
- Strong management efficiency and debt servicing capacity, with ROCE around 15.35% and Debt to EBITDA ratio below 1.
- Healthy operating profit growth at an annualised rate of 41.77%, indicating underlying business strength.
- Institutional holdings at 35.49%, signalling continued interest from professional investors.
Market Grade and Outlook
According to the latest assessment dated 11 Nov 2025, Bata India holds a Mojo Score of 44.0 and a Mojo Grade of Sell, upgraded from a previous Strong Sell rating. The company’s market capitalisation grade stands at 3, reflecting its mid-tier status within the footwear sector. These ratings encapsulate the stock’s current valuation and performance metrics as analysed by MarketsMOJO.
While the stock’s recent price action and financial indicators highlight areas of concern, the company’s operational metrics and institutional backing provide a nuanced picture of its current standing in the market.
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