Bata - In Indian Psyche - some value still left

Whether we believe it or not, Bata is ingrained in indian Psyche. Now the question is whether the latest generation is going to adapt or not. How the competition is going to respond to it. The best thing is they have 235 acres and developing 25 acres with out any initial investment.

I also like these kind of companies because even though there is a global crisis, people still need to buy shoes and chappals. For Indian roads, we walk more and they worn out quickly. Can you belive we sell 1B shoes/chappals per year. It makes sense with 1B people. With 35% of the branded market share and 9% overall, this is a good thing for BATA. There are couple of huge tailwinds with, the percapita income is increasing and the economies of scale and  power of branding will improve as they open up more stores. By they way, you should always use the broker report for information gathering but not necesarrrily decide based on their recommendation. I have also seen their turns have improved in the last three years. They are better utilizing their assets, inventory.

I have seen a lot Emerging Funds in US buy technology stocks in India.  They forget if some headwinds are there in US, these businesses are getting affected. If they truly want to diversify they should invest in business which depends on the Indian population, percapita and GDP income/growth. Some times these concepts are simple but you only learn these lessons after a few scars

Read the detail report here

http://www.joindre.cmlinks.com/ResearchReport.aspx?Stype=1&Rtype=3&Ntype=5&id=1#