Equity research Bata

Table of Contents

2EXECUTIVE SUMMARY: �

3INTRODUCTION �

51.BATA SHOE STOCK OVERVIEW �

92. MACROECONOMIC SITUATION �

102.1 Growth, Savings and Investment �

112.2 Inflation �

132.3 Money and Credit �

132.4 Capital Markets �

152.5 Exports �

162.6 Imports �

162.7Remittances �

172.8 Foreign Currency Reserve �

192.9 Reforms in Banking, Monetary and Credit Policies �

202.10 Industry �

212.11 Banking Sector Performance Trends �

232.11 Private Sector Development �

232.12Near Term Economic Outlook: �

263. INDUSTRY ANALYSIS �

334. COMPANY ANALYSIS (COMPETITIVE) �

334.1Bata Shoe company ratio analysis (Competitive): �

444.2 Sales Forecast: �

465. FORECASTING RETURNS FOR BATA STOCK �

465.1Risk Free Rate: �

495.2 USING the CAPM �

535.3Measurement of Return and Performance �

535.3.1. FORECASTING A RETURN RATE USING THE CAPM: �

545.3.2. Measuring Performance of BATA Using Treynor, Sharpe and Jensen's Alpha �

575.3.3. Forecasting Using Blooms Formula: �

57RECOMMENDATION �

58APPENDIX �

62REFERENCES: �

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EXECUTIVE SUMMARY:

This report gives an objective analysis and forecasting on the Stock of Bata Shoe company- The market leader in the tannery footwear in Bangladesh.

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The purpose of this report is to analyze the investment environment and to forecast an expected return on Bata stock. As a proper equity research report it has many parts.

The report starts with a very brief overview of Bata Company and the performance of its stock in the past year. This deals with EPS, P/E ratio and Historical data and return on Bata stock. After this the report delves into a broad discussion on macroeconomic environment of Bangladesh. After discussing the change in the key indicators, an analysis on the future uncertainty of the economic environment of Bangladesh is given. How this environment affects the investors decision is the reason for this discussion.

The next part briefly discusses the tannery...