Balkrishna Industries Ltd. share price target

Escorts Ltd; Mahindra and Mahindra Ltd; Balkrishna Industries Ltd.

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...

capabilities and wide network across 140 countries. With sustained marketing and R&D spends, 1 Year Avg. Dly Traded Volume (in lakh) BKT has narrowed its price discount to global peers (to 10-15% vs 25-30% 5 years ago in the agri space). Gradual shift towards OTR (32% by the end of FY21 v/s 20% in FY15) will also provide great...

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...

Balkrishna Industries’ (BIL) key export markets reported strong demand trends with Aug’21 industry exports up 33% YoY. The latest data (Aug’21) indicates continued momentum in OTR segment (up 33% YoY) even as agri (Ag) demand growth remained sturdy at ~33% YoY. Data continues to support the robust demand momentum driven by both Ag and OTR segments: FY22-YTD industry exports are up ~69% YoY on USD basis.

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