Time period given by analyst is one year when Balkrishna Industries Ltd. price can reach defined target.
Balkrishna Industries Ltd., incorporated in the year 1961, is a Large Cap company (having a market cap of Rs 47442.94 Crore) operating in Tyres sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 1885.08 Crore, up 3.88 % from last quarter Total Income of Rs 1814.74 Crore and up 92.61 % from last year same quarter Total Income of Rs 978.70 Crore. Company reported net profit after tax of Rs 330.56 Crore in latest quarter.
Investment Rationale
As BIL reaches high utilisations in FY23E (assuming ~23% revenue CAGR over FY20-FY23E), we expect RoCEs to improve to >27%, and FCF generation to surpass Rs25bn (cumulatively over FY22-23E). The export incentive scheme (RoDTEP) also could provide additional boost to profitability. The brokerage maintains target multiple at 26x FY23E EPS based on strong growth visibility and top-quartile return metrics.
Promoter/FII Holdings
Promoters held 58.3 per cent stake in the company as of June 30, 2021, while FIIs held 15.2 per cent, DIIs 14.1 per cent and public and others 12.4 per cent.
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