Shares of Bata India fell 3 percent intraday on Friday as investors turned cautious after Motilal Oswal downgraded the stock.
The broking firm downgraded the stock to sell, with a target of Rs 578, a downside of 23 percent.
The brokerage highlighted how the company’s focus has been on product premiumisation. “The intent is to expand average realization through premiumization and increase the revenue contribution of premium products from 30% to 45% in FY18.
However, with subdued growth in 1HFY18, we expect the ramping up of premium products’ contribution to get pushed to FY19, with marginal margin expansion of 70bp in FY18 to 12% and 100bp thereafter to 13% in FY19,” the brokerage said in a report.
For more information Call us ✆ +91 9111-179961 or Visit Dollar Advisory
The broking firm downgraded the stock to sell, with a target of Rs 578, a downside of 23 percent.
The brokerage highlighted how the company’s focus has been on product premiumisation. “The intent is to expand average realization through premiumization and increase the revenue contribution of premium products from 30% to 45% in FY18.
However, with subdued growth in 1HFY18, we expect the ramping up of premium products’ contribution to get pushed to FY19, with marginal margin expansion of 70bp in FY18 to 12% and 100bp thereafter to 13% in FY19,” the brokerage said in a report.
For more information Call us ✆ +91 9111-179961 or Visit Dollar Advisory
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