Stock To Buy: Geojit Bets On Midcap Retail Stock For High Return, Board Recommends 270% Dividend

Brokerage firm Geojit in its recent report has come up with a Buy rating on Bata India Ltd. (BIL) with a Target Price of Rs. 1,826/share on the stock. With the given target price, the brokerage claims a decent upside of 15% from its current level.

The Board of Directors of BIL in a meeting held on May 18, 2023, recommended a Dividend of Rs. 12.50/share i.e. 270% of Rs 5 each fully paid up of the company for the financial year 2022-23. The recommended dividend is subject to approval of the members at the AGM.

270% Dividend

According to the regulatory filing by the Board of Directors of Bata India Ltd., "The Board at the Meeting recommended a Dividend of Rs. 13.50 (270%) per equity share of Rs. 5/- each, fully paid-up of the Company, for the financial year ended March 31, 2023, for approval of the Members at the AGM. The payment of dividend, is subject to approval of the shareholders, at the AGM."

Buy For a Target Price of Rs 1826/share

The Brokerage firm said, "The demand is expected to improve as the inflation recedes. We believe, BIL has the capability to revive its revenue growth trajectory given its strong brand recall & distribution reach and strong balance sheet. The special dividend of Rs.50.5 in FY22 (dividend yield of ~3.8%), helped to recover the return ratios to pre-Covid levels. We upgrade the rating to BUY with a revised target of Rs. 1,826 (Rs. 1,620 earlier), valuing BIL at 47x on FY25E EPS."

Stock Outlook - Current Market Price & Performance

On Wednesday, the share price of BIL closed 0.91% higher at Rs. 1592.30/share on NSE. The stock jumps 0.51% in the past 1 week, while in 1 month, it jumped 7.73%.
However, it has fallen 10.81% in the past 1 year. It gave 12.59% positive return in 3 years and 108.48% in the past 5 years, respectively.

The stock traded the 52 week high on 2 August 2022 at Rs. 2004.90/share and 52 week low on 20 March 2023 at Rs. 1381.05/share, respectively.

About - Bata India Ltd. (BIL)

Bata India Ltd. (BIL) is the largest retailer and leading manufacturer of footwear in India, with 2,000+ retail stores as of March 2023. With a market capitalisation of Rs. 20,427.52 crore, it is a retail sector midcap company.

Disclaimer - The stock has been picked from the brokerage report of Geojit. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.