Buy Bata India - Motilal Oswal

Motilal Oswal has given a Buy call on Bata India at the current market price of Rs.888 with a target price of Rs.1025.

Bata India is the largest organized player in footwear with one of the best balance sheet and return ratios in the industry.

The company is an excellent proxy to play consumer demand in India, which will ensure good stock performance in the short run because of investor's flight to safety due to prevailing uncertainty in the economy.

The strong cash flows will ensure strong addition of stores through internal accruals - This is helping transform the company into a marketing entity rather than a producer.

BUY with a 12 month target of Rs.1025 (27x CY13E) for 15% upside.

Source : Equity Bulls

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