Balkrishna Industries Ltd., incorporated in the year 1961, is a Large Cap company (having a market cap of Rs 30920.12 Crore) operating in Tyres sector.
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Promoters held 58.3 per cent stake in the company as of Sept 30, 2020, while FIIs held 11.5 per cent, DIIs 19 per cent and public and other 11.2 per cent.
ICICI Securities has given a buy rating to Balkrishna Industries with a target price of Rs 1735. The share price moved up by 1.08 per cent from its previous close of Rs 1581.75. The stock’s last traded price is Rs 1599.05.
Balkrishna Industries Ltd., incorporated in the year 1961, is a Large Cap company (having a market cap of Rs 30920.12 Crore) operating in Tyres sector.
Financials For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 1577.90 Crore, up 67.40 % from last quarter Sales of Rs 942.61 Crore and up 45.53 % from last year same quarter Sales of Rs 1084.28 Crore Company reported net profit after tax of Rs 340.94 Crore in latest quarter.
Investment Rationale BIL has come out of the recent slowdown with market share gains and superior margins. Management continues to remain conservative in their long- term margin guidance (28-30%). However, important fact for investors to remember is that over the past decade (as margins expanded from ~18% to 34%) similar management margin guidance’s have been below the actuals. This is reflective of the superior business, capital allocation decisions taken by BIL; this is unlikely to change in future. The brokerage values the stock on an unchanged multiple of 22x Sep’22E EPS of Rs79 to arrive at a target price of Rs1,735/share (earlier: Rs1,671). Promoter/FII Holdings Promoters held 58.3 per cent stake in the company as of Sept 30, 2020, while FIIs held 11.5 per cent, DIIs 19 per cent and public and other 11.2 per cent.
