Kesoram Industries Ltd. share price target

No visible turnaround prompts us to drop coverage Despite divestment of non-core assets and disposal of tyre unit at Laksar to JK Tyre for | 2,195 crore in April 2016, the company's debt has remained elevated. In FY18, Kesoram Industries witnessed an increase in debt of ~| 800 crore to | 4098 crore mainly led by a rise in losses in tyre business and increase in non-current investment by | 649 crore. Further, we expect the company's cement business to witness margin pressure mainly led by a weak pricing environment and higher input cost. This was...

Revenue rose by 7.81% to Rs. 969.52 Cr in Q4FY17 when compared to the previous quarter. On the other hand it fell by 8.52% when compared with Q4FY16.

Incorporated in 1919, Kesoram Industries (KIL), is a BK Birla Group company and is engaged in the manufacturing of tyre, rayon and cement. Both their brands Birla Tyres (Tyre division) and Birla Shakti(Cement division) are well recognised brands in the sector. Going forward with government's focus on infrastructure and affordable housing, the cement unit is going to do well apart from which the traction in auto sector is going to help in tyre division.

KIL is a diversified company with business interests in Tyres, Cement and Rayon. Lower rubber prices & pick up in auto sector are the major triggers for the tyre business of the company wherein the company supplies to major auto OEMs in India as well as abroad. However, the bulk of revenue is driven by replacement market (~70%) which will see a strong rebound as the economy turns and demand revives.

Incorporated in 1919, the company has been under the leadership of late G.D. Birla, late B.M. Birla, and its current Promoter, Mr. B.K. Birla. It has diversified business interests in...