The 18 reports from 7 analysts offering long term price targets
for Balkrishna Industries Ltd. have an average target of 1653.00. The consensus estimate
represents a downside of -0.39%
from the last price of 1659.40.
Background: Balkrishna Industries (BIL) is focused solely on 'off-highway' tyres catering to agricultural & industrial segments. The company has a ~7% share of the global market. While OTR forms ~65% of the global market, for BIL, it only contributes ~33% to its revenue. The company has been undertaking various actions like setting up warehouses in markets in North America and Europe to be closer to the customer and have a just in time (JIT) system. The company sales cover over 130 countries through distribution network in Americas, Europe, India and Rest of the world....
For BIL, sales, PAT are seen growing at 11%, 12% CAGR, respectively, in FY20-23E. BIL continues to broadly deliver on stated growth and margin guidance. BIL's net debt free B/S, double-digit return ratios and strong cash generation provides us margin of safety. As a result, we continue to hold a positive view on the stock and retain our BUY rating with a revised target...
Balkrishna Industries (BKT) posted 2QFY21 adjusted PAT of Rs3.29bn, up by ~18.9% YoY, driven by strong volume growth led margin expansion. Net revenue of Rs15.52bn grew by 40.2% YoY and was 12% above our estimate. Volume grew by 35.5% YoY, above our estimate on the back of strong demand for Agri Tyres across geographies. ASP grew by 3.4% YoY mainly due to higher forex realization and a favourable product mix. EBITDA margin stood at 32.8%, up 540bps YoY, led by strong volume growth and was above our estimate. This increase was largely driven by strong operating leverage, benefit of backward integration and better forex realisation. Crude oil prices continue to remain range-bound but the rubber prices have increased significantly and thus BKT is...
Q2 results were ahead of estimates across parameters; BKT posted best ever quarterly volumes; OPM rose 540 bps yoy to 32.8% BKT is witnessing strong demand traction particularly agri segment and has raised...
Background: Balkrishna Industries (BIL) is focused solely on 'off-highway' tyres catering to agricultural & industrial segments. The company has a ~7% share of the global market. While OTR forms ~65% of the global market, for BIL, it only contributes ~33% to its revenue. The company has been undertaking various actions like setting up warehouses in markets in North America and Europe to be closer to the customer and have a just in time (JIT) system. The company sales cover over 130 countries through distribution network in Americas, Europe, India and Rest of the world....
Balkrishna Industries (BIL) reported healthy Q1FY21 results under the circumstances. Decline in standalone revenues was limited to 22.2% YoY (| 929 crore), tracking 25.7% decline in total tonnage to 38,096 MT during the Covid impacted quarter. Encouragingly, the company expects to close FY21E with similar volume levels as FY20 (~2 lakh MT). EBITDA in Q1FY21 was at | 230.6 crore, down 13.9% YoY, 38.1% QoQ. Margins fell 262 bps QoQ to 24.8%. QoQ decline in margin performance was on account of negative operating leverage although gross margins recorded a strong 511...
Balkrishna Industries (BKT) posted 1QFY21 adj PAT of Rs1.5bn, down by ~6.9% YoY but higher than our estimate, mainly due to strong operating performance. Net revenue of Rs9.4bn declined by 22.7% YoY, marginally above our estimate. Volume declined by 25.7% YoY, in-line with our estimate on the back of strong revival in agri demand across geographies post lifting of the lockdown. ASP grew by 4.2% YoY mainly due to a favourable product mix and absence of pricing action in 1QFY21. EBITDA margin stood at 25.9%, up 190bps YoY, even as volume declined and was above our estimate. This increase was largely driven by lower commodity costs, benefit of backward integration and better forex realisation. Lower other expenses further aided EBITDA margin. Carbon black plant is currently...
Balkrishna Industries (BIL) Q1FY21 EBITDA performance was broadly in line with our estimates. EBITDA de-grew 14% YoY at Rs 2.3bn, with margin at 24.8% (+239bps YoY; -262bps QoQ) (vs est of 24.6%), on...
Management positive on trends. Management has expressed greater optimism about US and Europe demand from the agricultural sector, which would be key drivers for FY21. While it expects flat volumes for FY21, we expect 5% volume growth based on our channel checks, assuming no further lockdowns. Also, revenues from carbon black over and above that required for captive purposes would be the catalyst of overall growth. Accordingly, we...
Completion of capex to support FCF and profitability For FY21, BIL has given a capex guidance of ~Rs 6bn for FY21, including maintenance capex of Rs 1.5bn. Residual capex for Waluj and Bhuj plants of Rs 5bn is likely to be completed by FY21 end with a maximum delay of one quarter. We expect FCF to improve significantly from FY21 onward as most of the planned capex has already been incurred. The earlier plan of setting up a Greenfield plant in USA has been kept in abeyance, citing...
Background: Balkrishna Industries (BIL) is focused solely on 'off-highway' tyres catering to agricultural & industrial segments. The company has a ~7% share of the global market. While OTR forms ~65% of the global market, for BIL, it only contributes ~33% to its revenue. The company has been undertaking various actions like setting up warehouses in markets in North America and Europe to be closer to the customer and have a just in time (JIT) system. The company sales cover over 130 countries through distribution network in Americas, Europe, India and Rest of the world....
BIL stands apart from the rest of the tyre pack in respect of its business model (niche export-oriented player in off highway tyre i.e. OHT segment, serving agri & OTR industries), with Europe (51%) and North America (17%) forming 68% of revenues (India comprises ~20% of topline; BIL has ~5-6% market share domestically). For BIL, agri: OTR product mix is at 61:35, with replacement demand forming 75% of overall pie. BIL's export focus helped it comprehensively outperform domestic tyre manufacturers in Q4FY20, with volumes growing 4.7% YoY to 57,966 MT its highest quarterly...
Balkrishna Industries (BKT) posted 4QFY20 adj PAT of Rs2.6bn, up by ~44% YoY mainly on account of higher EBITDA margin and lower tax rate. The adj PAT was higher than our estimate. Net revenue of Rs13.89bn grew by 2.6% YoY, much above our estimate. Volume grew by 4.7% YoY, ahead of our estimate due to better than expected agri demand in Europe. ASP declined by 4.2% QoQ due to adverse mix and discounts offered to pass the benefit of lower RM costs. EBITDA margin stood at 29.1%, up 530bps YoY and was 210bps above our estimate. This increase was largely driven by lower commodity costs, benefit of backward integration and better forex realisation. Lower other expenses further aided EBITDA margin. Phase 2 of carbon black plant with capacity of 80,000MT...
Background: Balkrishna Industries (BIL) is focused solely on 'off-highway' tyres catering to agricultural & industrial segments. The company has a ~7% share of the global market. While OTR forms ~65% of the global market, for BIL, it only contributes ~33% to its revenue. The company has been undertaking various actions like setting up warehouses in markets in North America and Europe to be closer to the customer and have a just in time (JIT) system. The company sales...
Sales, EBITDA and PAT are seen growing at 14.6%, 19.4% & 12.9% CAGR, respectively, over FY20E-22E. Sustainability and quantum of recent uptick in OHT export volumes is a key monitorable for BIL, going forward. In our view, the CMP factors in most positives, leading us to maintain HOLD rating with a revised target price of | 1275, valuing BIL at 20x FY22E EPS of | 63.6. BIL is trading at substantial premium valuations compared to its peers, courtesy...
Balkrishna Industries (BKT) posted 3QFY20 adj PAT of Rs2.4bn, up by ~36% YoY mainly on account of higher EBITDA margin, lower tax rate. The adj PAT was higher than our estimate. Net revenue of Rs47.3bn grew by 1.2% YoY, 8.4% above our estimate. Volume grew by 1.2% YoY and 4.8% QoQ, higher than our estimate. ASP declined by 2.2% YoY but grew by 2.0% QoQ due to better mix and forex realisation. Management expects better growth in FY21 on the back of improving global macro-economic situation and expectation of better weather conditions across Europe. It maintains the guidance of better 2HFY20 vs 1HFY20 and expects a minor de-growth in the full year. EBITDA margin stood at 30.8%, up 340bps QoQ and was 360bps above our estimate. This increase was...
Balkrishna Industries (BKT) posted 2QFY20 revenue of Rs11,072mn, down 19.2% YoY and 9.1% QoQ, below our estimate of Rs13,420mn on account of 13.7% YoY decline in volume and lower than expected realization. Challenging environmental condition in Europe and unfavorable macro-economic situation around the globe affected volume. The company has revised its growth guidance from 3-5% volume growth to mid single digit de-growth for FY20. EBITDA for 2QFY20 was Rs3,035mn, down 19.6% YoY and up 4% QoQ against our expectation of Rs3,288mn. EBITDA margin stood at 27.4% (NBIE est. of 24.5%), down 20bps YoY. EBITDA margin improved by 340bps QoQ on the back of improvement in gross margin, partially offset by higher employee...
Background: Balkrishna Industries (BIL) is focused solely on 'off-highway' tyres catering to agricultural & industrial segments. The company has a ~7% share of the global market. While OTR forms ~65% of the global market, for BIL, it only contributes ~33% to its revenue. The company has been undertaking various actions like setting up warehouses in markets in North America and Europe to be closer to the customer and have a just in time (JIT) system. The company sales to over 130...
