Q4 results: Market share concern weighs on Bata India; stock falls

Store-level inventory management issues benefiting peers but firm's profitability expected to keep improving

 

In spite of a strong set of numbers for the March quarter (Q4), shares of Bata India have declined 0.4 per cent over two days. In fact, the stock has underperformed the benchmark BSE Sensex and peers in the past month (down four per cent), due to concerns over loss of market share.

In a note after the results, analysts at Dolat Capital said their channel checks revealed despite no demand hiccups and Bata faced store-level inventory management issues, like unavailability of sizes for its key brand, Hush Puppies. Peers like Khadim India are benefiting from this. 

However, Bata