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Balkrishna Industries (BIL) has reported strong demand trends in its key overseas markets with overall Q2FY23 exports revenue being up 25% YoY (in US$ terms) against industry exports being up 5% YoY.
We maintain BUY with a target price of ? 3,400 based on 45x FY24E EPS of ? 75.6 on the back of strong growth ahead of mutual fund AUM (AAUM went up ? 39.6 Lakh Cr in Q2FY23). CAMS posted in-line revenue (+2.4% QoQ).
Key takeaways include: (1) Reiteration towards sustained path of VNB improvement (absolute as well as margin), (2) strategy of increasing bancassurance business.
We retain our BUY rating on the stock and value the company at 9x FY24E EV/EBITDA to arrive at a TP of Rs 115/share, implying an upside of 13% from the CMP (taking into consideration the impact of higher tax).