Check Before You Invest : Balkrishna Industries Ltd

Q: Which industry/sub-sector does Balkrishna Industries Ltd belong to?

Balkrishna Industries Ltd belongs to the Automobiles sector, operating specifically within the Tyres & Allied segment.

Q: Is Balkrishna Industries Ltd a good quality company?

Balkrishna Industries Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Balkrishna Industries Ltd undervalued or overvalued?

Balkrishna Industries Ltd appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 33.95, Historic Median: 33.27. Price to Book, Current: 4.04, Historic Median: 5.76. Price to Sales, Current: 4.12, Historic Median: 5.05. EV to EBITDA, Current: 18.47, Historic Median: 19.51

Q: Is Balkrishna Industries Ltd a good buy now?

Balkrishna Industries Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Balkrishna Industries Ltd?

Balkrishna Industries Ltd revenue growth is 12% for FY-2025, which is below its 5-year CAGR of 16.84%, indicating slower growth.

Q: Gross Profit margin of Balkrishna Industries Ltd?

Balkrishna Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 27.2% for FY-2025, which is in line with its 5-year median of 27.3%, indicating stable margins.

Q: Operating Profit Margin of Balkrishna Industries Ltd?

Balkrishna Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 23.26% for FY-2025, which is in line with its 5-year median of 23.71% indicating stable margins.

Q: Net Profit Margin of Balkrishna Industries Ltd?

Balkrishna Industries Ltd Net Profit Margin is 15.64% for FY-2025, is in line with its 5-year median of 15.64%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 27.2, Historic Median: 27.3. Operating Profit Margin (%), Current: 23.26, Historic Median: 23.71. Net Profit Margin (%), Current: 15.64, Historic Median: 15.64

Q: Return on Asset of Balkrishna Industries Ltd?

Balkrishna Industries Ltd Return on Asset is 11.17%, which is in line with its 5-year historical median of 11.17%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Balkrishna Industries Ltd?

Balkrishna Industries Ltd Return on capital employed is 17.9% for FY-2025, which is in line with its 5-year historical median of 17.9%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : Balkrishna Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does Balkrishna Industries Ltd belong to?

Balkrishna Industries Ltd belongs to the Automobiles sector, operating specifically within the Tyres & Allied segment.

Q.2 Is Balkrishna Industries Ltd a good quality company?

Balkrishna Industries Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Balkrishna Industries Ltd undervalued or overvalued?

Balkrishna Industries Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	33.95	33.27
Price to Book	4.04	5.76
Price to Sales	4.12	5.05
EV to EBITDA	18.47	19.51

Q.4 Is Balkrishna Industries Ltd a good buy now?

Balkrishna Industries Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Balkrishna Industries Ltd?

Balkrishna Industries Ltd revenue growth is 12% for FY-2025, which is below its 5-year CAGR of 16.84%, indicating slower growth.

Q.2 Gross Profit margin of Balkrishna Industries Ltd?

Balkrishna Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 27.2% for FY-2025, which is in line with its 5-year median of 27.3%, indicating stable margins.

Q.3 Operating Profit Margin of Balkrishna Industries Ltd?

Balkrishna Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 23.26% for FY-2025, which is in line with its 5-year median of 23.71% indicating stable margins.

Q.4 Net Profit Margin of Balkrishna Industries Ltd?

Balkrishna Industries Ltd Net Profit Margin is 15.64% for FY-2025, is in line with its 5-year median of 15.64%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	27.2	27.3
Operating Profit Margin (%)	23.26	23.71
Net Profit Margin (%)	15.64	15.64

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Balkrishna Industries Ltd?

Balkrishna Industries Ltd Return on Asset is 11.17%, which is in line with its 5-year historical median of 11.17%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Balkrishna Industries Ltd?

Balkrishna Industries Ltd Return on capital employed is 17.9% for FY-2025, which is in line with its 5-year historical median of 17.9%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Balkrishna Industries Ltd?

Balkrishna Industries Ltd Return on equity is 16.92% for FY-2025, which is in line with its 5-year historical median of 17.48%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Balkrishna Industries Ltd?

Balkrishna Industries Ltd Cash conversion cycle is 74 days, in line with its 5-year historical median of 74 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.71	0.78
ROE (%)	16.92	17.48
ROCE (%)	17.9	17.9
Cash Conversion Cycle	74 days	74 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Balkrishna Industries Ltd?

Balkrishna Industries Ltd Debt-to-Equity ratio is 0.31, which is lower the industry average of 0.44, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Balkrishna Industries Ltd?

Balkrishna Industries Ltd Debt to cash flow from operations is 1.83, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Balkrishna Industries Ltd?

Q.1 Promoter shareholding and pledge status of Balkrishna Industries Ltd?

Promoters hold 58.29% of the Balkrishna Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Balkrishna Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Balkrishna Industries Ltd vs industry peers?

Balkrishna Industries Ltd revenue CAGR is 16.84%, compared to the industry median CAGR of 14.22%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	12	14.2
Gross Profit Growth (%)	11.3	12.5
Operating Profit Growth (%)	9.9	13.8
Net Profit Growth (%)	13.2	8.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.71	0.89
ROE (%)	16.92	13.7
ROCE (%)	17.9	16.08
Cash Conversion Cycle (days)	74.45	73

Valuation & price assessment

Q.1 Stock return of Balkrishna Industries Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 21.3% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	21.3%	4.3%	1.6%	-17.4%

Q.2 Valuation ratios of Balkrishna Industries Ltd vs historical?

The current P/E ratio of 33.95 is in line with than its historical median of 33.27, indicating that the stock is trading near its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	33.95	33.27	30.55
Price to Book	4.04	5.76	2.17
Price to Sales	4.12	5.05	1.37
EV to EBITDA	18.47	19.51	11.27

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Check Before You Invest : Balkrishna Industries Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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