The Hindu Business Line : Turnaround, restructuring hopes boost Bata India

Trading volumes in the stock have also increased during this period; from a average daily volume of around 2 lakh shares (combined BSE and NSE), volumes have increased to over 10 lakh shares in the last few days.

Brokers and analysts attribute the interest to the on-going restructuring undertaken by the company, which included voluntary retirement scheme and entry into real estate by undertaking township at its land in Bata Nagar in Kolkata.

Mr Arun Kejriwal, Investment Strategist at Angel Broking, said Bata has currently undertaken a massive restructuring exercise the benefits of which would follow in the coming years.He said with organised retailing gaining momentum within the country, Bata remains in a comfortable position to leverage on the opportunities considering its strong retail chain network.

The company is jointly developing its surplus land at Bata Nagar to convert it into a self-sustaining township, which is also expected to result in savings in maintenance costs and generate cash flow, said Mr Kejriwal.

The realignment of the company's retail stores in different segments has also led to increased interest in the stock.

According to analysts, the company is now dividing its retail stores into flagship (up market customers), family (middle class customers) and bazaar (lower-end customers) so as to offer customised products based on the area.

Further, the company is also expanding its operations in the ladies and children's segments.

Mr Kejriwal said the recent increase in excise limits on footwear from Rs 125 to Rs 250 would also help the company in driving its volumes as the company derives more than 50 per cent of its volumes from the segment (that is below Rs 250).