Bata to clock about 15% annual growth in net sales in two years: Analysts

Bata India's stock trades at 15% premium to its historic valuation

The stock of Bata India has surged 13 per cent after a healthy December 2018 quarter result, taking the one-year gains to about 98 per cent. The stock has outpaced the S&P BSE FMCG index that rose 4.7 per cent since February 12 and is up about 14 per cent in one year. This sharp rally could cap upside in the stock that now trades around 45 times its FY20 estimated earnings, 15 per cent higher than its average five-year valuation, even as the company's earnings outlook remains healthy, say analysts.

An expected rise in advertising spends from 0.7 per cent