Buy Balkrishna Industries, target price Rs 2290: Nuvama Wealth

Nuvama Wealth has buy call on Balkrishna Industries Ltd. with a target price of Rs 2290. The current market price of Balkrishna Industries is Rs 2128.85. The brokerage recommended to keep stop loss at Rs 2059.

Balkrishna Industries, incorporated in the year 1961, is a Large Cap company (having a market cap of Rs 41234.56 Crore) operating in Tyres sector.

Balkrishna Industries key Products/Revenue Segments include Tyres & Tubes, Export Incentives, Scrap and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 2884.17 Crore, up 5.84 % from last quarter Total Income of Rs 2725.15 Crore and up 30.77 % from last year same quarter Total Income of Rs 2205.53 Crore. Company has reported net profit after tax of Rs 382.26 Crore in latest quarter.

The company’s top management includes Mr.Arvind Poddar, Mr.Rajiv Poddar, Mr.Vipul Shah, Mrs.Vijaylaxmi Poddar, Mr.Sandeep Junnarkar, Mr.Pannkaj Ghadiali, Mr.Rajendra Hingwala, Ms.Shruti Shah. Company has N G Thakrar & Co as its auditors. As on 30-06-2022, the company has a total of 19 Crore shares outstanding.

Investment Rationale
“Rounding Bottom” pattern which is associated with a bottom formation.

Promoter/FII Holdings
Promoters held 58.29 per cent stake in the company as of 30-Jun-2022, while FIIs owned 14.3 per cent, DIIs 11.17 per cent.