Valuation Report on Bata India Limited

Profit & Loss Account / Income Statement

BATA INDIA LTD

Rs Cr Dec-13 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Sales 2,065 2,694 2,423 2,474 2,634 2,931 3,056 1,708 2,388 3,452

% Growth YOY 30% -10% 2% 6% 11% 4% -44% 40% 45%

Expenses 1,728 2,343 2,129 2,178 2,271 2,441 2,210 1,540 1,960 2,658
Material Cost (% of Sales) 52% 50% 47% 48% 48% 47% 44% 34% 56% 45%
Power and Fuel 2% 2% 2% 2% 2% 2% 2% 2% 2% 0%
Other Mfr. Exp 1% 1% 1% 1% 1% 1% 1% 1% 1% 0%
Employee Cost 11% 12% 11% 12% 11% 11% 12% 20% 16% 12%
Selling and Admin Cost 22% 24% 25% 25% 23% 23% 12% 15% 16% 0%
Gross Profit 998 1,346 1,278 1,288 1,379 1,564 1,726 1,133 1,045 1,902
Gross Profit Margin 48% 50% 53% 52% 52% 53% 56% 66% 44% 55%

EBITDA 338 351 294 296 364 490 846 169 427 794
EBITDA Margins 16% 13% 12% 12% 14% 17% 28% 10% 18% 23%
Other Income 18 75 97 18 49 66 66 87 54 39
Other Income as % of Sales 0.8% 2.8% 4.0% 0.7% 1.8% 2.3% 2.1% 5.1% 2.3% 1.1%
Depreciation 59 79 79 65 60 64 296 265 242 295
EBIT 278 272 215 231 303 426 550 -96 185 499
Interest 13 18 16 15 15 14 129 108 99 108

Interest Coverage(Times) 23 20 20 17 24 34 5 -0 2 5
Profit before tax (PBT) 283 329 297 234 337 478 487 -117 140 430
% Growth YOY 16% -10% -21% 44% 42% 2% -124% -220% 208%

PBT Margin 14% 12% 12% 9% 13% 16% 16% -7% 6% 12%
Tax 92 98 79 75 117 149 158 -27 37 107
Actual Tax Rate 32.5% 29.7% 26.7% 32.0% 34.6% 31.1% 32.5% 23.4% 26.3% 24.9%
Net profit 191 231 217 159 221 329 329 -89 103 323
% Growth YOY 21% -6% -27% 39% 49% 0% -127% -215% 214%
Net Profit Margin 9% 9% 9% 6% 8% 11% 11% -5% 4% 9%
EPS 14.9 18.0 16.9 12.4 17.2 25.6 25.6 -7.0 8.0 25.1

% Growth YOY 21% -6% -27% 39% 49% 0% -127% -215% 214%

Price to earning 35.5 30.3 30.1 45.9 42.5 54.9 48.1 -202.3 244.7 56.4
Price 527 545 509 568 730 1,405 1,231 1,406 1,961 1,418
Dividend Payout 21.9% 18.1% 20.7% 28.3% 23.3% 24.4% 15.6% -57.6% 680.0% 53.7%
Market Cap 6,770 7,009 6,536 7,298 9,380 18,055 15,820 18,070 25,204 18,226
Retained Earnings 149 190 172 114 169 249 278 -141 -597 150
 Balance Sheet
BATA INDIA LTD
Rs Cr Dec-13 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Equity Share Capital 64 64 64 64 64 64 64 64 64 64
Reserves 776 957 1,157 1,260 1,410 1,678 1,830 1,694 1,750 1,374
Borrowings - - - - - - 1,249 1,032 1,094 1,246
Other Liabilities 542 616 512 599 667 732 589 542 616 587
Total Liabilities 1,382 1,637 1,733 1,923 2,141 2,474 3,732 3,332 3,525 3,272

Net Block 248 309 304 268 296 317 1,369 1,120 1,226 1,394
Capital Work in Progress 24 48 19 30 12 17 20 34 5 2
Investments - - - - - - - - - 1
Other Assets 1,110 1,280 1,410 1,625 1,833 2,140 2,343 2,179 2,294 1,876
Total Assets 1,382 1,637 1,733 1,923 2,141 2,474 3,732 3,332 3,525 3,272

Working Capital 568 664 898 1,027 1,166 1,408 1,754 1,637 1,678 1,289
Debtors 51 58 71 69 89 66 63 79 72 83
Inventory 583 705 685 714 765 839 874 608 871 905
Cash & Bank 256 210 342 522 591 840 964 1,097 969 531

Key Ratios Dec-13 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Debtor Days 9 8 11 10 12 8 8 17 11 9
Inventory Turnover 4 4 4 3 3 3 3 3 3 4
Net Fixed Asset Turnover 8.3 8.7 8.0 9.2 8.9 9.3 2.2 1.5 1.9 2.5
Debt/Equity 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 65.95% 58.72% 60.30% 86.67%
Return on Equity 23% 23% 18% 12% 15% 19% 17% -5% 6% 22%
Return on Capital Employed 35% 34% 26% 19% 24% 28% 20% 0% 8% 20%
Return on Invested Capital 33% 29% 25% 20% 25% 36% 15% -5% 5% 15%
Market Cap (₹ Cr) 6,770 7,009 6,536 7,298 9,380 18,055 15,820 18,070 25,204 18,226
 Common Size P&L BATA INDIA LTD
Rs Cr Dec-13 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Sales 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Raw Material Cost 51.7% 50.1% 47.2% 47.9% 47.6% 46.6% 43.5% 33.7% 56.2% 44.9%
Change in Inventory 5.7% 4.1% -0.3% 1.1% 2.0% 2.7% 1.1% -15.3% 10.7% 1.0%
Power and Fuel 2.5% 2.4% 2.3% 2.2% 2.1% 2.0% 2.0% 2.3% 1.8% 0.0%
Other Mfr. Exp 0.7% 0.7% 0.7% 0.7% 0.8% 0.7% 0.7% 0.8% 0.7% 0.0%
Employee Cost 10.8% 11.6% 10.8% 11.9% 11.2% 11.3% 12.3% 19.9% 15.9% 12.1%
Selling and Admin Cost 22.0% 23.9% 24.6% 24.8% 23.3% 22.7% 11.8% 14.9% 15.9% 0.0%
Other Expenses 1.7% 2.5% 2.0% 1.6% 3.2% 2.7% 3.1% 3.2% 2.3% 21.0%
Operating Profit 4.9% 4.8% 12.7% 9.7% 9.8% 11.3% 25.5% 40.5% -3.5% 20.9%

Other Income 0.8% 2.8% 4.0% 0.7% 1.8% 2.3% 2.1% 5.1% 2.3% 1.1%
Depreciation 2.9% 2.9% 3.3% 2.6% 2.3% 2.2% 9.7% 15.5% 10.1% 8.5%
Interest 0.6% 0.7% 0.7% 0.6% 0.6% 0.5% 4.2% 6.3% 4.2% 3.1%
Profit Before Tax 13.7% 12.2% 12.2% 9.5% 12.8% 16.3% 15.9% -6.8% 5.9% 12.5%

Tax 4.5% 3.6% 3.3% 3.0% 4.4% 5.1% 5.2% -1.6% 1.5% 3.1%
Net Profit 9.2% 8.6% 9.0% 6.4% 8.4% 11.2% 10.8% -5.2% 4.3% 9.4%
Dividend Amount 2.0% 1.6% 1.9% 1.8% 2.0% 2.7% 1.7% 3.0% 29.3% 5.0%

Common Size Balance Sheet BATA INDIA LTD

Rs Cr Dec-13 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Equity Share Capital 4.6% 3.9% 3.7% 3.3% 3.0% 2.6% 1.7% 1.9% 1.8% 2.0%
Reserves 56.1% 58.5% 66.7% 65.5% 65.9% 67.8% 49.0% 50.8% 49.7% 42.0%
Borrowings 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 33.5% 31.0% 31.0% 38.1%
Other Liabilities 39.2% 37.6% 29.6% 31.1% 31.1% 29.6% 15.8% 16.3% 17.5% 17.9%
Total Liabilities 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Net Block 18.0% 18.9% 17.5% 13.9% 13.8% 12.8% 36.7% 33.6% 34.8% 42.6%
Capital Work in Progress 1.7% 2.9% 1.1% 1.6% 0.6% 0.7% 0.5% 1.0% 0.1% 0.0%
Investments 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Other Assets 80.3% 78.2% 81.4% 84.5% 85.6% 86.5% 62.8% 65.4% 65.1% 57.3%
Total Assets 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Receivables 3.7% 3.6% 4.1% 3.6% 4.2% 2.7% 1.7% 2.4% 2.0% 2.5%
Inventory 42.2% 43.0% 39.5% 37.1% 35.7% 33.9% 23.4% 18.3% 24.7% 27.6%
Cash & Bank 18.5% 12.8% 19.8% 27.1% 27.6% 34.0% 25.8% 32.9% 27.5% 16.2%
 Ratio Analysis
BATA INDIA LTD
Profitability Ratios Dec-13 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Sales Growth 30.4% -10.1% 2.1% 6.5% 11.3% 4.3% -44.1% 39.8% 44.6%
Expenses Growth 30.5% -17.5% 5.7% 6.3% 9.5% -12.4% -55.4% 143.2% 10.5%
Sustainable Growth Rate 17.8% 18.6% 14.1% 8.6% 11.5% 14.3% 14.7% -8.0% -32.9% 10.4%
Gross Profit Growth 34.9% -5.0% 0.8% 7.1% 13.4% 10.3% -34.4% -7.7% 81.9%
EBITDA Growth 4.0% -16.4% 0.7% 22.9% 34.7% 72.7% -80.0% 153.0% 85.7%
EBIT Growth -2.3% -21.0% 7.4% 31.4% 40.4% 29.3% -117.4% -293.5% 169.2%
PBT Growth 16.3% -9.8% -21.1% 44.1% 41.7% 2.0% -123.9% -219.8% 207.7%
Net Profit Growth 21.2% -6.0% -26.9% 38.7% 49.2% 0.0% -127.2% -215.3% 213.6%
Dividend Growth 0.0% 7.7% 0.0% 14.3% 56.2% -36.0% 0.0% 1262.4% -75.2%
Dividend Payout 21.9% 18.1% 20.7% 28.3% 23.3% 24.4% 15.6% -57.6% 680.0% 53.7%
Gross Margin 48.3% 49.9% 52.8% 52.1% 52.4% 53.4% 56.5% 66.3% 43.8% 55.1%
Operating Margin 16.4% 13.0% 12.1% 12.0% 13.8% 16.7% 27.7% 9.9% 17.9% 23.0%
PBT Margin 13.7% 12.2% 12.2% 9.5% 12.8% 16.3% 15.9% -6.8% 5.9% 12.5%
Net Margin 9.2% 8.6% 9.0% 6.4% 8.4% 11.2% 10.8% -5.2% 4.3% 9.4%
Efficiency Ratios Dec-13 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Debtor Days 9.00 7.92 10.70 10.24 12.38 8.26 7.56 16.96 10.96 8.73
Debtor Turnover 40.56 46.11 34.12 35.65 29.48 44.18 48.30 21.53 33.29 41.81
Inventory Days 102.98 95.48 103.25 105.30 106.02 104.52 104.35 129.95 133.13 95.66
Inventory Turnover 3.54 3.82 3.53 3.47 3.44 3.49 3.50 2.81 2.74 3.82
Net Fixed Asset Turnover 8.32 8.73 7.97 9.23 8.89 9.26 2.23 1.53 1.95 2.48
Total Asset Turnover 1.49 1.65 1.40 1.29 1.23 1.18 0.82 0.51 0.68 1.05
Sales/Capital Employed 2.46 2.64 1.98 1.87 1.79 1.68 0.97 0.61 0.82 1.29

DuPont Ratio Dec-13 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
DuPont ROA 13.8% 14.1% 12.5% 8.3% 10.3% 13.3% 8.8% -2.7% 2.9% 9.9%
Net Profit Margin 9.2% 8.6% 9.0% 6.4% 8.4% 11.2% 10.8% -5.2% 4.3% 9.4%
Sales/Total Asset 1.49 1.65 1.40 1.29 1.23 1.18 0.82 0.51 0.68 1.05
Return on Equity 22.7% 22.7% 17.8% 12.0% 15.0% 18.9% 17.4% -5.1% 5.7% 22.5%
Capital Allocation Ratios Dec-13 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Return on Capital Employed 35.2% 34.0% 25.6% 18.8% 23.9% 28.2% 19.6% -0.3% 8.2% 20.0%
EBIT Margins 13.5% 10.1% 8.9% 9.3% 11.5% 14.5% 18.0% -5.6% 7.8% 14.5%
Sales/Capital Employed 2.46 2.64 1.98 1.87 1.79 1.68 0.97 0.61 0.82 1.29
NOPAT 187.92 191.24 157.56 156.84 198.37 293.25 371.58 -73.36 136.68 374.99
Return on Invested Capital 32.7% 28.5% 24.7% 19.8% 25.0% 36.5% 15.1% -5.3% 5.3% 15.0%
Cash Ratios Dec-13 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Free Cash Flow (Rs Cr) 104 -14 165 210 84 263 496 425 164 540
Operating Cash Flow Growth -34.9% 71.5% 26.0% -37.5% 115.2% 68.7% -20.7% -54.1% 197.3%
Free Cash Flow Growth -113.8% -1256.2% 27.3% -59.8% 211.9% 88.6% -14.3% -61.5% 230.1%
FCF/Sales 5% -1% 7% 8% 3% 9% 16% 25% 7% 16%
CFO/Total Assets 13% 7% 12% 13% 7% 14% 16% 14% 6% 19%
CFO/Total Debt 0% 0% 0% 0% 0% 0% 47% 45% 19% 50%
Cash Interest Coverage 21.92 13.18 18.91 23.11 19.68 35.56 6.75 5.01 3.50 7.82
CFO/Capex -2.31 -0.89 -5.22 -5.46 -2.11 -4.21 -6.76 -12.81 -4.41 -7.07
Valuation Ratios Dec-13 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Enterprise Value (EV) 6514.7 6798.7 6193.0 6776.1 8788.7 17214.6 16104.8 18005.1 25329.4 18941.0
EV/EBITDA 19.29 19.36 21.08 22.91 24.17 35.14 19.03 106.57 59.27 23.86
Price/Earnings 35.47 30.30 30.06 45.91 42.54 54.88 48.09 -202.30 244.70 56.42
Price/Sales 3.28 2.60 2.70 2.95 3.56 6.16 5.18 10.58 10.56 5.28
Price/CFO 37.10 59.02 32.09 28.45 58.53 52.36 27.20 39.19 119.16 28.98
Price/Book Value 8.06 6.86 5.35 5.51 6.36 10.37 8.35 10.28 13.89 12.67
 BATA INDIA LTD
Particulars Dec-13 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Cash from Operating Activity (CFO) 183 119 204 257 160 345 582 461 212 629
% Growth YoY -35% 71% 26% -38% 115% 69% -21% -54% 197%
Cash from Investing Activity -118 -66 -114 -229 -112 -278 -189 -53 93 439
Cash from Financing Activity -46 -50 -52 -56 -56 -63 -436 -369 -341 -1,011
Net Cash Flow 18 2 37 -28 -7 4 -43 39 -37 57
CFO/Sales 8.8% 4.4% 8.4% 10.4% 6.1% 11.8% 19.0% 27.0% 8.9% 18.2%
CFO/Net Profit 95.6% 51.3% 93.7% 161.4% 72.7% 104.8% 176.8% -516.2% 205.3% 194.7%
CFO/EBITDA 54.0% 33.8% 69.3% 86.7% 44.1% 70.4% 68.7% 272.9% 49.5% 79.2%
Capex -79 -133 -39 -47 -76 -82 -86 -36 -48 -89
FCFF 104 -14 165 210 84 263 496 425 164 540
Average FCF (3 Years) 377
FCF Growth YoY -113.8% -1256.2% 27.3% -59.8% 211.9% 88.6% -14.3% -61.5% 230.1%
FCF/Sales 5.0% -0.5% 6.8% 8.5% 3.2% 9.0% 16.2% 24.9% 6.8% 15.6%
FCF/Net Profit 54.2% -6.2% 75.7% 131.8% 38.2% 79.9% 150.7% -475.9% 158.8% 167.1%
 Valuation - Discounted Cash Flow
BATA INDIA LTD

Key Assumptions FCF CAGR Trend

Years 1-5 6-10 9-Years 7-Years 5-Years 3-Years
FCF Growth Rate 12% 10% -105% 60% 91% 51%
Discount Rate 12%

Period (t) Mar-22 Mar-23 Mar-24 Mar-25 Mar-26 Mar-27 Mar-28 Mar-29 Mar-30 Mar-31 Mar-32
Year 0 1 2 3 4 5 6 7 8 9 10
Free Cash Flow to Firm 377.4 422.7 473.4 530.2 593.8 665.1 731.6 804.8 885.2 973.8 1071.1

Discount rate (r) 12% 12% 12% 12% 12% 12% 12% 12% 12% 12%
PV of Cash Flows 378.2 379.0 375.5 380.6 381.5 375.5 369.5 363.7 358.0 352.4

Stage 1: Sum of Present Values 3713.8

Terminal Value Reverse DCF

Terminal Growth Rate 2% DCF Value 5618.5
10th Year FCF x (1+g) 1092.6 Current Market Cap 21348.4
Terminal value 11194.2 DCF as % of Mkt Cap 26%
Stage 2: PV of TV 3682.4

Enterprise Value (Stage 1 + 2) 7396.2

Net Debt (Latest Year)

Debt 1246.4
Less: Cash -531.2
Net Debt 1777.6

DCF Value (Equity Value) 5618.5

 BATA INDIA LTD
(BATAINDIA | BSE CODE: 500043)
INR 1661
52 Week (High – INR 1,672.45 & Low – 1,218.05)

About the Company

Avenue Supermarts Limited, is an Indian retail corporation that operates a chain of hypermarkets in India.It was founded by Radhakishan Damani in 2002 when its first store was opened in Powai, Mumbai. As of December 2022, it has 306 stores across 14 states in India. The company has its
headquarters in Mumbai. As of 31 March 2022, DMart had a total of 10,713 permanent employees and 58,597 employees hired on contractual basis.

Summary
Revenue from Operations (in Crs.) Net Profit (in Crs.) Earnings Per Share (in Rs.)
3,452 329 323
25.6 25.1
3,056
2,388
1,708 103
8.0

Jan-20 Jan-21 Jan-22 Jan-23

-89 Mar-20 Mar-21 Mar-22 Mar-23
Mar-20 Mar-21 Mar-22 Mar-23
-7.0

Asset Turnover Ratio Return on Equity Return on Capital Employed

0.98 1.02
19.86% 20.0%
18.09% 19.6%
0.70
0.48
5.77% 8.2%

Mar-20 Mar-21 Mar-22 Mar-23

Mar-20 Mar-21 Mar-22 Mar-23 -4.89% Jan-20 -0.3%
Jan-21 Jan-22 Jan-23

RETURN ON EQUITY (ROE)

Mar-20 Mar-21 Mar-22 Mar-23
NET PROFIT ₹ 328.94 ₹ -89.32 ₹ 103.00 ₹ 323.01
AVERAGE SHAREHOLDERS EQUITY ₹ 1,817.88 ₹ 1,826.01 ₹ 1,786.37 ₹ 1,626.43
RETURN ON EQUITY 18.09% -4.89% 5.77% 19.86%

ROE - DUPONT EQUATION

Mar-20 Mar-21 Mar-22 Mar-23
NET PROFIT ₹ 328.94 ₹ -89.32 ₹ 103.00 ₹ 323.01
REVENUE ₹ 3,056.11 ₹ 1,708.48 ₹ 2,387.72 ₹ 3,451.57
NET PROFIT MARGIN (A) 10.76% -5.23% 4.31% 9.36%

REVENUE ₹ 3,056.11 ₹ 1,708.48 ₹ 2,387.72 ₹ 3,451.57

AVERAGE TOTAL ASSETS ₹ 3,103.27 ₹ 3,532.46 ₹ 3,428.80 ₹ 3,398.41
ASSET TURNOVER RATIO (B) 0.98 0.48 0.70 1.02

AVERAGE TOTAL ASSETS ₹ 3,103.27 ₹ 3,532.46 ₹ 3,428.80 ₹ 3,398.41

AVERAGE SHAREHOLDERS EQUITY ₹ 1,817.88 ₹ 1,826.01 ₹ 1,786.37 ₹ 1,626.43
EQUITY MULTIPLIER (C) 1.71 1.93 1.92 2.09

RETURN ON EQUITY (A*B*C) 18.09% -4.89% 5.77% 19.86%

RETURN ON ASSETS (ROA)

Mar-20 Mar-21 Mar-22 Mar-23
NET PROFIT ₹ 328.94 ₹ -89.32 ₹ 103.00 ₹ 323.01
AVERAGE TOTAL ASSETS ₹ 3,103.27 ₹ 3,532.46 ₹ 3,428.80 ₹ 3,398.41
RETURN ON EQUITY 10.60% -2.53% 3.00% 9.50%

ROC - DUPONT EQUATION

Mar-20 Mar-21 Mar-22 Mar-23
NET PROFIT ₹ 328.94 ₹ -89.32 ₹ 103.00 ₹ 323.01
REVENUE ₹ 3,056.11 ₹ 1,708.48 ₹ 2,387.72 ₹ 3,451.57
NET PROFIT MARGIN (A) 10.76% -5.23% 4.31% 9.36%

REVENUE ₹ 3,056.11 ₹ 1,708.48 ₹ 2,387.72 ₹ 3,451.57

AVERAGE TOTAL ASSETS ₹ 3,103.27 ₹ 3,532.46 ₹ 3,428.80 ₹ 3,398.41
ASSET TURNOVER RATIO (B) 0.98 0.48 0.70 1.02

RETURN ON EQUITY (A*B*C) 10.60% -2.53% 3.00% 9.50%

RETURN ON CAPITAL EMPLOYED (ROCE)

Mar-20 Mar-21 Mar-22 Mar-23
NOPAT ₹ 371.58 ₹ -73.36 ₹ 136.68 ₹ 374.99
AVERAGE CAPITAL EMPLOYED ₹ 1,960.48 ₹ 2,418.29 ₹ 2,365.23 ₹ 2,530.91
RETURN ON CAPITAL EMPLOYED 18.95% -3.03% 5.78% 14.82%

ROCE - DUPONT EQUATION

Mar-20 Mar-21 Mar-22 Mar-23
NOPAT ₹ 371.58 ₹ -73.36 ₹ 136.68 ₹ 374.99
REVENUE ₹ 3,056.11 ₹ 1,708.48 ₹ 2,387.72 ₹ 3,451.57
NOPAT MARGIN (A) 12.16% -4.29% 5.72% 10.86%

REVENUE ₹ 3,056.11 ₹ 1,708.48 ₹ 2,387.72 ₹ 3,451.57

AVERAGE CAPITAL EMPLOYED ₹ 1,960.48 ₹ 2,418.29 ₹ 2,365.23 ₹ 2,530.91
CAPITAL TURNOVER RATIO (B) 1.56 0.71 1.01 1.36

RETURN ON EQUITY (A*B*C) 18.95% -3.03% 5.78% 14.82%

MOAT ASSESSMENT
Mar-20 Mar-21 Mar-22 Mar-23
Gross Profit Margin 56.46% 66.30% 43.79% 55.10%
EBITDA Margin 27.69% 9.89% 17.90% 23.00%
Net Profit Margin 10.76% -5.23% 4.31% 9.36%
ROIC 15.10% -5.27% 5.31% 15.00%
ROCE 18.95% -3.03% 5.78% 14.82%
ROE 10.60% -2.53% 3.00% 9.50%
EPS ₹ 25.60 ₹ -6.95 ₹ 8.02 ₹ 25.14
ROA 10.60% -2.53% 3.00% 9.50%

PEER COMPARISON (DUPONT EQUATION)

BATA INDIA LTD A B C

NET PROFIT MARGIN (A) 9.36% 0.00% 0.00% 0.00%

ASSET TURNOVER RATIO (B) 1.02 0.00% 0.00% 0.00%
EQUITY MULTIPLIER (C) 2.09 0.00% 0.00% 0.00%

RETURN ON EQUITY (A*B*C) 19.86% 0.00% 0.00% 0.00%

PEER COMPARISON
BATA INDIA LTD AVERAGE MEDIAN
NET PROFIT MARGIN (A) 9.36% 0.00% 0.00%
ASSET TURNOVER RATIO (B) 101.56% 0.00% 0.00%
EQUITY MULTIPLIER (C) 208.95% 0.00% 0.00%

RETURN ON EQUITY (A*B*C) 19.86% 0.00% 0.00%

 Forensic Analysis
Parameters Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Sales Growth -10.1% 2.1% 6.5% 11.3% 4.3% -44.1% 39.8% 44.6%
Debtor Growth 21.5% -2.2% 28.7% -25.7% -4.6% 25.4% -9.6% 15.1%
Inventory Growth -2.7% 4.2% 7.2% 9.7% 4.1% -30.4% 43.2% 3.9%
Debtors/Sales 2.9% 2.8% 3.4% 2.3% 2.1% 4.6% 3.0% 2.4%
Inventory/Sales 28.3% 28.8% 29.0% 28.6% 28.6% 35.6% 36.5% 26.2%
Depreciation % Sales 3.3% 2.6% 2.3% 2.2% 9.7% 15.5% 10.1% 8.5%

CFO Growth 26.0% -37.5% 115.2% 68.7% -20.7% -54.1% 197.3% -100.0%
CFO/PAT 93.7% 161.4% 72.7% 104.8% 176.8% -516.2% 205.3% 194.7%
CFO/EBITDA 69.3% 86.7% 44.1% 70.4% 68.7% 272.9% 49.5% 79.2%
CFO/Sales 8.4% 10.4% 6.1% 11.8% 19.0% 27.0% 8.9% 18.2%

Contingent Liability
Contingent Liability % Net Asset - - - - - - - -

Intangible Assets
Intangible Assets % Total Assets - - - - - - - -

Miscelleneous Expenses
Miscelleneous Expenses % Total Sales - - - - - - - -

Related Party Sale

Related Party Sale % Total Sale - - - - - - - -

Debtor Write off

Write off % Debtors - - - - - - - -

CWIP to Net Fixed Assets 6.3% 11.1% 4.1% 5.5% 1.5% 3.0% 0.4% 0.1%
 Waren Buffett's 1989 - $1 Test
BATA INDIA LTD
₹ Cr Dec-13 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Retained Earnings 149 190 172 114 169 249 278 -141 -597 150
Market Cap 6,770 7,009 6,536 7,298 9,380 18,055 15,820 18,070 25,204 18,226
How much market value has been created for every ₹ 1 of retained earnings? 15.7