Balkrishna Industries Ltd., incorporated in the year 1961, is a Large Cap company (having a market cap of Rs 47347.25 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
The brokerage expects BIL’s outperformance to the industry to continue, driven by expansion of product portfolio and ramp-up in OTR segment, with scope to strengthen its competitive positioning.
Current valuations fairly reflect its industry leading margin, FCF, and capital efficiencies. It currently trades at a P/E multiple of 30.7x/25.8x of FY22E/FY23E EPS. It values BIL at 25x Sep’23E EPS (at a 25%/80% premium to its five/10-year average P/E), with a TP of INR2,600.
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.
(Disclaimer: Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.
