What Are Analysts Saying About Bata India Limited's (NSE:BATAINDIA) Growth?
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Based on Bata India Limited's (NSE:BATAINDIA) earnings update in March 2019, analyst forecasts appear to be conservative, with earnings growth rate expected to be 12% next year, which is within range of the past five-year average earnings growth of 13%. By 2020, we can expect Bata India’s bottom line to reach ₹3.7b, a jump from the current trailing-twelve-month of ₹3.3b. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Bata India in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
View our latest analysis for Bata India
Exciting times ahead?
The longer term view from the 10 analysts covering BATAINDIA is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of BATAINDIA's earnings growth over these next few years.
By 2022, BATAINDIA's earnings should reach ₹4.9b, from current levels of ₹3.3b, resulting in an annual growth rate of 13%. EPS reaches ₹38.49 in the final year of forecast compared to the current ₹25.6 EPS today. With a current profit margin of 11%, this movement will result in a margin of 12% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Bata India, I've compiled three relevant factors you should look at:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is Bata India worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Bata India is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Bata India? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
