Recent Price Movement and Market Context
On 21 Nov 2025, Bata India’s share price touched Rs.997.65, representing a decline of 0.94% on the day and underperforming its sector by 0.35%. The stock has recorded losses for seven consecutive trading sessions, resulting in a cumulative return of -5.49% over this period. This persistent slide has placed the stock below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a broad-based weakness in price momentum.
In comparison, the Sensex opened lower by 285.28 points and was trading at 85,316.06, down 0.37% on the day. Despite this, the Sensex remains close to its 52-week high of 85,801.70, trading just 0.57% below that peak. The benchmark index continues to hold above its 50-day and 200-day moving averages, indicating a generally bullish trend in the broader market, contrasting with Bata India’s subdued performance.
One-Year Performance and Relative Underperformance
Over the last twelve months, Bata India’s stock has declined by 22.09%, a stark contrast to the Sensex’s positive return of 10.61% during the same period. This divergence underscores the stock’s consistent underperformance against the benchmark index. Furthermore, Bata India has lagged behind the BSE500 index in each of the past three annual periods, reflecting a prolonged period of relative weakness within its sector and market segment.
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Financial Results and Profitability Trends
Bata India’s recent quarterly results reveal a decline in net sales by 14.92%, which has contributed to a challenging earnings environment. The company reported a profit after tax (PAT) of Rs.19.85 crore for the quarter, reflecting a reduction of 64.0% compared to the average of the previous four quarters. This sharp contraction in profitability has weighed on investor sentiment and contributed to the stock’s downward pressure.
The operating profit to interest ratio for the quarter stood at 4.28 times, the lowest recorded in recent periods, indicating a tighter margin of safety in covering interest expenses. Additionally, the company’s debt-to-equity ratio at the half-year mark reached 2.94 times, the highest level observed, signalling an elevated leverage position that may be a concern for credit metrics and financial flexibility.
Operational Efficiency and Debt Servicing
Despite the pressures on profitability and leverage, Bata India demonstrates certain strengths in management efficiency. The company’s return on capital employed (ROCE) remains robust at 15.35%, reflecting effective utilisation of capital resources. Moreover, the debt to EBITDA ratio is relatively low at 0.97 times, suggesting a manageable level of debt servicing capability in relation to earnings before interest, tax, depreciation, and amortisation.
Operating profit has exhibited a compound annual growth rate of 44.45%, indicating underlying growth in core earnings before the recent quarterly decline. The company’s valuation metrics also show an enterprise value to capital employed ratio of 5.9, which is attractive relative to peer averages, with the stock currently trading at a discount compared to historical valuations within the footwear sector.
Shareholding and Institutional Interest
Institutional investors hold a significant stake in Bata India, accounting for 36.29% of the share capital. This level of institutional ownership reflects a substantial presence of investors with resources and expertise to analyse the company’s fundamentals. Such holdings often provide a degree of stability in shareholding patterns, even amid periods of price volatility.
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Historical Price Range and Valuation Context
The stock’s 52-week high was recorded at Rs.1,476.95, which places the current price of Rs.997.65 approximately 32.5% below that peak. This wide price range over the past year highlights the volatility experienced by Bata India shares and the challenges faced in maintaining upward momentum. The stock’s valuation discount relative to peers may reflect market caution given recent earnings trends and leverage levels.
While the company has demonstrated healthy long-term growth in operating profit, the recent quarterly results and leverage metrics have contributed to the current price weakness. The stock’s performance over the past year, with a return of -22.09% and a profit decline of 21.7%, illustrates the pressures on both market valuation and earnings generation.
Sector and Industry Considerations
Bata India operates within the footwear industry, a sector that has faced varied demand conditions and competitive pressures. The stock’s underperformance relative to the sector and broader market indices suggests that company-specific factors have played a significant role in its recent price movements. The footwear sector itself has experienced mixed performance, with some companies maintaining growth trajectories while others face headwinds from cost inflation and changing consumer preferences.
Summary of Current Concerns
The key factors contributing to Bata India’s 52-week low include a notable decline in net sales, a sharp fall in quarterly profits, elevated leverage ratios, and a stock price trading below all major moving averages. These elements collectively indicate a period of subdued market confidence and highlight the challenges faced by the company in the current operating environment.
Broader Market Environment
While Bata India’s shares have declined, the broader market as represented by the Sensex remains near its 52-week high and trades above key moving averages, suggesting that the stock’s weakness is not reflective of overall market conditions. This divergence emphasises the company-specific nature of the stock’s recent performance.
Conclusion
Bata India’s fall to a new 52-week low of Rs.997.65 marks a significant milestone in its recent price trajectory. The stock’s performance over the past year and quarter reflects a combination of declining sales, reduced profitability, and increased leverage. Despite certain strengths in management efficiency and debt servicing capacity, the stock remains under pressure relative to its historical price range and sector peers. Investors and market participants will continue to monitor the company’s financial metrics and market developments as the stock navigates this challenging phase.
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