Gains for Bata hinge on recovery hopes, rising premium portfolio

Government policies to improve consumption especially in tier 2 and tier 3 centres could help improve demand for footwear majors such as Bata

The stock of footwear major Bata India has been the highest gainer among larger listed footwear companies since the start of the month on expectations of a recovery in the value segment, new launches and measures by the new government to boost consumption.

The third largest footwear maker by market capitalisation has been trailing its peers over the past few quarters due to the slowdown in the mass segment market which accounts for a significant chunk of its revenues. The stock is up eight per cent this month outperforming its peers as well as the benchmarks. 

Though the