Is Bata India Overvalued or Undervalued Right Now?
- August 31, 2026
- Posted by: Kunal Singla
- Category: Market
Bata India CMP Rs 684.40 (31 Aug 2026), up 0.46%. PE 59.95 vs industry PE 43.30. ROE 10.39%. 52W range Rs 605.00 to Rs 1,282.50.
Quick Answer
Bata India trades at a price to earnings ratio of 59.95 against an industry average of 43.30, which puts the stock close to fair value on a simple multiple basis rather than clearly overvalued or undervalued. The company’s 10.39% return on equity and Rs 124.14 book value per share fit broadly within its sector’s range. Whether Bata India is overvalued or undervalued right now is less about a wide valuation gap and more about how its growth and margins evolve from here.
Is Bata India overvalued or undervalued right now is a question worth asking given how its price to earnings ratio compares with the rest of its sector. At the current market price of Rs 684.40, the stock trades roughly 46.6% below its 52 week high of Rs 1,282.50 and about 13.1% above its 52 week low of Rs 605.00.
Bata India’s share price moved up 0.46% in Monday’s session to Rs 684.40, against a market capitalisation of Rs 8,760 Cr. This article looks at the numbers, the PE ratio, price to book, return on equity, debt levels and recent earnings trends, that determine whether the current price reflects fair value or a stretched multiple.
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Bata India Valuation Metrics: Where Does the Stock Stand?
| Valuation Metric | Bata India |
|---|---|
| CMP (31 Aug 2026) | Rs 684.40 |
| Market Cap | Rs 8,760 Cr |
| P/E Ratio | 59.95 |
| Industry P/E | 43.30 |
| P/B Ratio | 5.49 |
| Sector Average P/B (footwear and retail) | 12.82 |
| Return on Equity (ROE) | 10.39% |
| Sector Average ROE (footwear and retail) | 20.63% |
| EPS (TTM) | Rs 11.37 |
| Book Value per Share | Rs 124.14 |
| Debt to Equity | 0.87 |
| Dividend Yield | 1.32% |
| Sector Average Dividend Yield (footwear and retail) | 0.75% |
| 52 Week High / Low | Rs 1,282.50 / Rs 605.00 |
The headline number here is the price to earnings ratio. At 59.95, the Bata India PE ratio is 1.38 times the industry average of 43.30. Measured against its footwear and retail sector peers, the gap widens further on other measures too: a P/B of 5.49 against a sector average of 12.82, and an ROE of 10.39% against a sector average of 20.63%.
Is Bata India Overvalued Based on Its P/E Ratio?
Based on the P/E ratio alone, Bata India looks fairly valued. The stock’s PE of 59.95 sits close to the industry average of 43.30, which suggests the market is pricing the business roughly in line with its sector rather than at a premium or a discount. That leaves the read on whether Bata India is overvalued or undervalued more dependent on its growth trajectory than on the PE ratio itself.
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Bata India’s Financial Growth and Profitability
Bata India’s revenue moved from Rs 3,556.27 crore in FY2025 to Rs 3,594.70 crore in FY2026, a change of 1.1%. Net profit fell from Rs 330.66 crore to Rs 134.20 crore over the same period, a swing of roughly 59.4%.
The dip in net profit is worth watching closely, since a PE of 59.95 assumes the business can grow back into its current valuation rather than shrink further. A sustained profit decline would make the Bata India share price look more expensive than the headline PE already suggests.
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Arguments That Bata India Could Be Overvalued
- Valuation premium: The stock’s PE of 59.95 is 1.38 times the industry average of 43.30.
- High price to book: A P/B of 5.49 means the market is paying several times book value of Rs 124.14 per share.
- Limited margin of safety: At Rs 684.40, the stock is only 46.6% below its 52 week high of Rs 1,282.50, leaving less room for error if earnings disappoint.
Arguments That Support the Premium Valuation
- Reasonable income: A dividend yield of 1.32% offers some cushion while the market decides on the growth story.
- 52 week range context: At Rs 684.40, the stock is 13.1% above its 52 week low of Rs 605.00, showing it has already found some support at lower levels.
Verdict: Is Bata India Overvalued or Undervalued Right Now?
On balance, Bata India looks fairly valued rather than clearly overvalued or undervalued. Its PE of 59.95 sits close to the industry average of 43.30, and its 10.39% ROE and other ratios do not point to a significant mispricing either way. The more useful question for investors from here is less about the current multiple and more about whether earnings growth accelerates or slows.
What Could Change This Valuation Picture for Bata India?
Two broad scenarios could shift this valuation call on Bata India in either direction. On the upside, an improvement in return ratios or growth that pushes the stock’s PE of 59.95 toward a premium over the industry average of 43.30. On the downside, a deterioration in the numbers that pulls the PE below the industry average of 43.30 instead. Investors watching the Bata India share price over the next few quarters should track whether reported ROE holds near 10.39% and whether the PE gap versus the industry average of 43.30 widens or narrows, since both will matter more to the eventual answer than the current price point on its own.
Conclusion
Bata India’s numbers point to a stock that is fairly valued on headline multiples. Investors tracking the Bata India share price should watch whether earnings growth can keep pace with the current PE of 59.95, since that gap remains the single biggest variable in whether the stock is undervalued, fairly priced, or overvalued from here. This article is for informational purposes only and is not investment advice.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
FAQs on Bata India Valuation
Is Bata India overvalued or undervalued right now?
Ans. Based on a PE ratio of 59.95 against an industry average of 43.30, Bata India currently looks fairly valued on relative valuation. Its 10.39% ROE is an important part of the picture alongside the PE ratio.
What is Bata India’s current PE ratio?
Ans. Bata India’s price to earnings ratio stands at 59.95, compared with an industry average PE of 43.30.
What is Bata India’s return on equity?
Ans. Bata India generates a return on equity of 10.39%, against a sector average of 20.63% among footwear and retail peers.
What is Bata India’s 52 week high and low?
Ans. Bata India’s 52 week high is Rs 1,282.50 and its 52 week low is Rs 605.00. The stock currently trades around Rs 684.40, roughly 46.6% below its high.
Does Bata India have high debt?
Ans. Bata India carries a debt to equity ratio of 0.87, which is moderate for its sector.
What is Bata India’s dividend yield?
Ans. Bata India offers a dividend yield of 1.32% at the current share price.
Is Bata India a good stock to buy at current levels?
Ans. Bata India’s current valuation suits investors who agree with the fairly valued read on its PE ratio and are comfortable with the trade-off between its return ratios and its price. This is for informational purposes only and is not investment advice.
What is Bata India’s price to book ratio?
Ans. Bata India trades at a price to book ratio of 5.49, compared with a sector average of 12.82 among footwear and retail peers.
