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A Holistic Look At Bata India Limited (NSE:BATAINDIA)

Simply Wall St

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Attractive stocks have exceptional fundamentals. In the case of Bata India Limited (NSE:BATAINDIA), there's is a company with great financial health as well as a a strong history of performance. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, take a look at the report on Bata India here.

Flawless balance sheet with solid track record

BATAINDIA delivered a bottom-line expansion of 49% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did BATAINDIA outperformed its past performance, its growth also exceeded the Luxury industry expansion, which generated a 16% earnings growth. This is an optimistic signal for the future. BATAINDIA's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. Investors should not worry about BATAINDIA’s debt levels because the company has none! This means it is running its business only on equity capital funding, which is rather impressive for a ₹184b market cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.

NSEI:BATAINDIA Income Statement, June 17th 2019

Next Steps:

For Bata India, I've compiled three essential aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for BATAINDIA’s future growth? Take a look at our free research report of analyst consensus for BATAINDIA’s outlook.
  2. Valuation: What is BATAINDIA 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 BATAINDIA is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BATAINDIA? Explore our interactive list of stocks with large 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.