Here's What Analysts Are Forecasting For Bata India Limited (NSE:BATAINDIA) After Its First-Quarter Results
Investors in Bata India Limited (NSE:BATAINDIA) had a good week, as its shares rose 4.9% to close at ₹756 following the release of its first-quarter results. It was a credible result overall, with revenues of ₹9.8b and statutory earnings per share of ₹10.44 both in line with analyst estimates, showing that Bata India is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following the latest results, Bata India's nine analysts are now forecasting revenues of ₹37.3b in 2027. This would be a modest 5.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 44% to ₹16.34. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹37.4b and earnings per share (EPS) of ₹17.87 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
View our latest analysis for Bata India
The consensus price target held steady at ₹739, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Bata India analyst has a price target of ₹904 per share, while the most pessimistic values it at ₹598. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bata India's past performance and to peers in the same industry. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 6.8% growth on an annualised basis. That is in line with its 8.3% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 13% per year. So although Bata India is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Bata India's revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹739, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Bata India going out to 2029, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 2 warning signs for Bata India you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.