Reduce Balkrishna Industries, target price Rs 2083: HDFC Securities

HDFC Securities has reduce call on Balkrishna Industries with a target price of Rs 2083. The current market price of Balkrishna Industries is Rs 2308.5.

Balkrishna Industries, incorporated in the year 1961, is a Large Cap company (having a market cap of Rs 44700.73 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-2023.


Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 2374.02 Crore, up 7.40 % from last quarter Total Income of Rs 2210.54 Crore and down -4.41 % from last year same quarter Total Income of Rs 2483.58 Crore. Company has reported net profit after tax of Rs 259.80 Crore in latest quarter.

Investment Rationale
Despite factoring in most positives, the stock at 24x FY25E appears expensive

Promoter/FII Holdings
Promoters held 58.29 per cent stake in the company as of 31-Mar-2023, while FIIs owned 12.42 per cent, DIIs 20.03 per cent.