Bata India shares zoom 7% on talks for a tie-up with Adidas

Shares of Bata India Ltd zoomed over 7% today after a report said the Indian shoemaker was in discussion with sportswear manufacturer Adidas for a strategic partnership for the Indian market. Subsequently, the footwear stock hit a high of Rs 1767.95, rising 7.37 per cent today. The market cap of the firm rose to Rs 22,455 crore on BSE.

A total of 0.44 lakh shares of the firm changed hands, amounting to a turnover of Rs 7.59 crore. However, the Bata stock has lost 9.42 per cent in a year and risen 6.04 per cent in 2023.

The share hit a 52-week high of Rs 1988.85 on August 17, 2022 and a 52 week low of Rs 1380.85 on March 20, 2023.

In terms of technicals, the relative strength index (RSI) of Bata India stands at 38.5, signaling it's trading neither in the oversold nor in the overbought territory. Bata India stock has a one-year beta of 0.6, indicating very low volatility during the period. Shares of Bata India are trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

According to a CNBC-TV18 report on Thursday, the talks are likely at an advanced stage and the final deal contours are in the works.

Meanwhile, BSE has sought a clarification from Bata India on August 17, 2023, with reference to news appeared inwww.cnbctv18.com dated August 17, 2023 quoting "Bata and Adidas said to be in talks for a collaboration for Indian market"

Bata India reported a consolidated net profit of Rs 106.8 crore in Q1, clocking a fall of 10.3 percent from Rs 119.3 crore a year back. Revenue stood at Rs 958.1 crore, rising 1.6 per cent from Rs 943 crore in the year-ago quarter.

"With our strategy of casualisation and premiumisation, expansion in retail network and accelerated investment towards core technologies (ERP, merchandising, among others), we believe the template is set up for future profitable growth, Gunjan Shah, MD and CEO, Bata India Limited, said.

Bata India is engaged in the business of manufacturing and trading of footwear and accessories through its retail and wholesale network, and development of real estate. The company operates in footwear & accessories segment. The Footwear & Accessories segment is engaged in the business of manufacturing and trading of footwear and accessories items through its retail and wholesale network. The Company offers accessories for women, including belts, clutches and scarves, and for men, including shoe care products, wallets and belts.

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