Name: MANVIKA JAISWAL

ABOUT THE COMPANY – BATA INDIA LTD.

The T. & A. Baťa Shoe Company was founded on 24 August 1894 in the Moravian town of Zlin,
Austria-Hungary by Tomáš Bat’a , his brother Antonín and his sister Anna, whose family had
been cobblers for generations. The company employed 10 full-time employees with a fixed work
schedule and a regular weekly wage, a rare find in its time. In the summer of 1895, Tomáš was
facing financial difficulties. To overcome these setbacks, he decided to sew shoes from canvas
instead of leather. This type of shoe became very popular and helped the company grow to 50
employees. Four years later, Bata installed its first steam-driven machines, beginning a period of
rapid modernization. Bata limited is a Canadian owned multinational footwear and fashion
accessory manufacturer and retailer based in Lausanne, Switzerland. A family owned business,
the company is organized into three business units: Bata, Bata industrial and aw lab. The
company has retail presence of over 5300 shops in more than 70 countries and production
facilities in 18 countries.

INTERPRETATION
BETA= 1.032892316 Beta tell us about the change of risk in % due to the
change in the market. In this we can say that when the
market goes down then the risk of the stock will also go
down.
DOWNSIDE BETA= This tell us that the downside beta moves opposite to the
0.014470192 market. This tells us that when market is down the beta is
up and when market is up the risk is more in the market.
LEVERED BETA= This tell us that the change in the risk % is due to the
1.032892316 change in the market .this tell us that when the market
goes up then the stock goes down by 0.096 % and vice
versa.
SECTOR BETA= This tell us that the sector is not much affected by the
0.543466041 change in nifty. This means that when there is 1% change
in the market then the sector changes by 0.0018% .
SYSTEMATIC BETA = - In this company we can see that how risky is the stock in
0.003 the market which means that when the market goes down
then the systematic risk goes up by 0.003%.
UNSYSTEMATIC In this company we can say that it occurs due to the
BETA=0.997 internal factors of the company. Hence we can say that
the controllable risk is 0.997%.
SHARP RATIO = As higher sharp ratio is said to be better. Here, in this
0.005 company the sharp ratio of 0.051 which is positive but is
very low hence shows unfavourable conditions.
TREYNOR RATIO= This shows that the return has performed not well as it is
-0.004 less than the risk free return.
EXPECTED RATE OF In this we can say that the rate of return annualy earned
RETURN= in the company is 6.43%
6.43%
WACC= The weighted average cost of capital is 0.2339 which
0.2339759 means that the risk associated is less.

ROE= This tells us that the return generated on equity is 27.08%

27.08% which is very high as compared to other companies.

ROA= Return on asset tells us about the 1% increase in

10.08% investment will lead to the increases in 8.59%

INTEREST RATIO= This tell us about the how much interest expenses can be
0.000139063 covered from the borrowings.
The interest coverage ratio is high which means that
expenses on borrowings are easily covered .
Current 2.43 This tells us about the liquidity which the firm is
Ratio maintaining to meet its short term obligations. It also tell
us that the ratio is 2.43 which is sufficient to meet its
obligations.
Quick Ratio 1.64 The quick ratio is more than 1 which determines that the
inventory portion is high compared to the liquid portion.
Debt to 23.01136 This tells us that the debt in the company is more as
equity ratio compared to the equity and it shows that it is not
aggressive in terms of growth of debt.