Sell Balkrishna Industries, target price Rs 1887: Nuvama Wealth

Nuvama Wealth brokerage has sell call on Balkrishna Industries with a target price of Rs 1887. The current market price of Balkrishna Industries is Rs 2027.2. Nuvama Wealth brokerage recommended to keep stop loss at Rs 2100.

Balkrishna Industries, incorporated in the year 1961, is a Large Cap company (having a market cap of Rs 39159.30 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 31-12-2022, the company has reported a Consolidated Total Income of Rs 2210.54 Crore, down -23.36 % from last quarter Total Income of Rs 2884.17 Crore and up 2.39 % from last year same quarter Total Income of Rs 2158.85 Crore. Company has reported net profit after tax of Rs 108.38 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 31-12-2022, the company has a total of 19 Crore shares outstanding.

Investment Rationale
Breakdown from a “Bearish Flag and Pole” pattern, rise in OI reaffirms bearish momentum.

Promoter/FII Holdings
Promoters held 58.29 per cent stake in the company as of 31-Dec-2022, while FIIs owned 12.45 per cent, DIIs 19.94 per cent.