Balkrishna Industries Ltd., incorporated in the year 1961, is a Large Cap company (having a market cap of Rs 30148.78 Crore) operating in Tyres sector.
Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 1577.90 Crore, up 67.40 % from last quarter Sales of Rs 942.61 Crore and up 45.53 % from last year same quarter Sales of Rs 1084.28 Crore Company reported net profit after tax of Rs 340.94 Crore in latest quarter.
Investment Rationale
The brokerage expects strong FCF generation of ~Rs28bn over FY22E/FY23E. It maintains valuation multiple at 24x Dec’22E EPS of Rs82.1 and maintain target price of Rs 1,969. It maintains BUY rating on the stock.
Promoter/FII Holdings
Promoters held 58.3 per cent stake in the company as of Sept 30, 2020, while FIIs held 11.5 per cent, DIIs 19 per cent and public and other 11.2 per cent.
