For 3QFY2019, Bata India (BIL) posted strong set of numbers, exceeding our
expectations on bottom-line front. Revenue grew by ~16% yoy (in-line with our
estimate). The company’s operating margins improved by robust 455bps yoy. On
the bottom-line front, BIL reported growth of ~52% yoy to `104cr on the back of
strong operating performance.

Outlook and Valuation: We expect BIL to report net revenue CAGR of ~15% to
~`3,497cr over FY2018-20E mainly due to increasing brand consciousness
among Indian consumers, new product launches, higher number of store
additions in tier II/ III cities and focus on high growth women’s segment. Further,
on the bottom-line front, we expect CAGR of ~28% to `358cr over the same
period on the back of margin improvement (increasing premium product sales).
Thus, we maintain our Buy recommendation on Bata India with Target Price of

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