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 52044.85 Crore) operating in Tyres sector.
Balkrishna Industries Ltd. key Products/Revenue Segments include Tyres & Tubes, Export Incentives, Scrap and Other Operating Revenue for the year ending 31-Mar-2021.
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 (~85-90%) utilisations in FY23E (assuming ~19% revenue CAGR over FY21-FY24E), we expect RoCEs to improve to ~28%, and FCF generation to surpass Rs36bn (cumulatively over FY23E-FY24E). The export incentive scheme (RoDTEP) could also provide additional boost to profitability. The brokerage introduces FY24E estimates and rollover to Sep’23E and maintain target multiple at 26x Sep’23E EPS based on strong growth visibility and top-quartile return metrics. It reiterates ADD with a target price of Rs2,837 (earlier: Rs2,572).
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 other 12.4 per cent.
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