has a call to buy with a target price of Rs 2479. The current market price of Balkrishna Industries is Rs 1967.35. Balkrishna Industries Ltd, incorporated in 1961, is a large capitalization company (having a market capitalization of Rs 37908.53 Crore) operating in the tire business.



Major product/revenue segments of Balkrishna Industries Ltd. include tires and tubes, export incentives, scrap and other operating income for the year ending March 31, 2022.

finance

For the quarter ended 30-09-2022, the company reported consolidated total revenue of Rs 2884.17 Crore, up 5.84% from last quarter’s total revenue of Rs 2725.15 Crore and up of 30.77% compared to the same quarter of last year. Total revenue of Rs 2205.53 Crore. The company reported a net profit after tax of Rs 382.26 Crore last quarter.

Senior management of the company includes Mr. Arvind

, Mr. Rajiv Poddar, Mr. Vipul Shah, Ms. Vijaylaxmi Poddar, Mr. Sandeep Junnarkar, Mr. Pannkaj Ghadiali, Mr. Rajendra Hingwala, Ms. Shruti Shah. The company has NG Thakrar & Co as auditors. As of 30-06-2022, the company has a total of 19 Crore shares outstanding.

Investment rationale
The brokerage firm estimates that the benefit of new container contracts at lower rates and the lag effect of lower RM costs could help the company’s EBITDA margin return to levels of 24-25% from of Q4FY23, in addition to generating volume growth of approximately 5% in FY23. Better cost arbitrage, increasing focus on improving OTR market share and scaling up large diameter tires are driving the brokerage firm’s revenue growth hypothesis. ~16% CAGR on FY22-FY24E (~9% CAGR volume).


Promoter/Fii Holdings
The promoters held 58.29% of the company’s capital as of June 30, 2022, while the FIIs held 14.3% and the DIIs 11.17%.

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