Stock gained in a decade, still has power. Stock Market News.



The stock gained 1,600% in a decade, still has power.


New Delhi: Performing consistently well in the stock market means a lot. There is a company whose stock has jumped over 1,600 per cent in the last 10 years. Analysts have high expectations from this stock in the coming times as well.

We are talking about the footwear company Bata India, whose stock has jumped 1,661 per cent in the last 10 years. It has given a return of 168.12 per cent in the last five years. The stock has grown 290 per cent in the last three years, while it has strengthened to 54.44 per cent in one year.

The stock has consistently outperformed the Sensex. At the end of 2019, the share price was Rs 1,750. Rilaxo Footwear, a rival of this stock, has also performed well in the last 10 years. However, another rival Khadim India has lost 67.27 per cent of its value during this period.



Relaxo Footwear shares have risen 67.64 per cent in the last one year, while in the last three years it has shown a jump of 206.33 per cent. In the last five years, this stock has given a strong return of 336.60 per cent and in the last 10 years, 6,311 per cent.

According to data from Reuters Econ, Bata India is currently trading at a PE of 62.20. As of January 1, 2020, according to data, three analysts have advised buying the stock, four analysts hold and two analysts sell.


In its note presented on December 9, Nirmal Bang Securities had advised increasing investment in this stock. Brokarez said, "We believe that there is a lot of growth in the Indian footwear industry. The industry may report good growth in the coming time."



India is the world's largest footwear market after China. According to the Ministry of Small, Small and Medium Enterprises, India produces more than 16 billion pairs of footwear every year, which is 13 per cent of the world. India makes 2 billion pairs of different categories of leather and non-leather footwear every year.

A total of 15,000 units in India are active in making footwear, with a total turnover of 50,000 crores. Of this, Rs 32,000 crore is the turnover of the domestic market and Rs 18,000 crore comes through exports.


ICICI Direct also expressed confidence in Bata's shares. The brokerage said that the company's cash-rich and debt-free balance sheet looks very attractive. The company's business model is quite efficient in terms of capital operations.


The brokerage said, "The company's portfolio is solid, including premium names. The company is pushing for volume growth and premium growth. In addition, the company is continuously increasing the number of stores in non-metro cities, thereby boosting growth will get."

Brokerages have advised to buy this stock with a target price of Rs 1,995. Bata India's net profit rose 28.22 percent to Rs 71.37 crore in the September quarter, while sales rose 7.26 percent to Rs 721.96 crore.


The parent company of Bata India is Bata Biwi of the Netherlands, which holds 52.96 per cent stake in it. Domestic mutual fund companies hold 15.22 per cent stake in the company through 97 schemes. Foreign institutional investors hold 11.27 per cent and LIC holds 3.05 per cent.



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