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Balkrishna Industries Ltd. Stock Analysis

Large Cap
Evaluated by 3974 users | BSE: 502355 | NSE: BALKRISIND |
Tyres & Allied

While the group foundation dates back to the 1950s, Balkrishna Industries (BKT) started its Off-Highway tire business in 1987. For many years, the company has successfully focused on specialist segments such as agricultural, construction and industrial as...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Balkrishna Industries Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 11.22%14.44%12.28%14.75%7.52%8.62%11.88%10.64%12.99%14.3%
Value Creation Index -0.050.250.070.28-0.35-0.250.03-0.080.130.24
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,9342,8203,1913,5773,7803,2233,7284,4475,2454,782
Y-o-Y Gr. Rt.-45.8%13.1%12.1%5.7%-14.8%15.7%19.3%17.9%-8.8%
Adjusted EPS (Rs.) 6.6714.5818.8828.5715.619.3328.6426.5934.6841.82
Y-o-Y Gr. Rt.-118.6%29.5%51.3%-45.4%23.9%48.2%-7.2%30.4%20.6%
Book Value per Share (Rs.) 43.0355.8773.497.5118.54143.9183.72211.86242.04260.12
Adjusted Net Profit 129282365552302374554514670808
Net Op. Cash Flow (Rs. Cr.) 59.473.65505949791,0958427538131,164
Debt to Cash Flow from Ops 10.0622.593.773.962.411.721.621.111.020.74
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Balkrishna Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 10.6%4.8%8.7%-8.8%
Adjusted EPS 22.6%21.8%13.5%20.6%
Book Value per Share 22.11712.37.5
Share Price 39.1% 38.9% 16.8% 82.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 17.2729.4829.2133.4314.4414.7317.4813.4415.2816.66
Operating Profit Margin (%) 14.4218.6221.2527.5519.4726.5230.3624.9125.0826.18
Net Profit Margin (%) 6.669.9911.4415.447.9811.614.8511.5612.7816.9
Debt to Equity 0.731.551.461.251.030.680.380.20.180.17
Working Capital Days 200178165156144140123130128140
Cash Conversion Cycle 89847764594733425061
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 58.30%
Institutions 30.49%
Non-Institutions 11.21%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Balkrishna Industries Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Balkrishna Industries Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Balkrishna Industries Ltd.'s performance infers:

Balkrishna Industries Ltd. earnings have grown by 21.8%, whereas share price has appreciated 38.9% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Balkrishna Industries Ltd. share prices over the last 10 years. Here is what we found out:

Balkrishna Industries Ltd. share price has appreciated 36.4% annually over the past ten years.

While the group foundation dates back to the 1950s, Balkrishna Industries (BKT) started its Off-Highway tire business in 1987. For many years, the company has successfully focused on specialist segments such as agricultural, construction and industrial as well as earthmoving, port and mining, ATV, and gardening applications.

Talent for innovation has been the company’s strength ever since as a result of

While the group foundation dates back to the 1950s, Balkrishna Industries (BKT) started its Off-Highway tire business in 1987. For many years, the company has successfully focused on specialist segments such as agricultural, construction and industrial as well as earthmoving, port and mining, ATV, and gardening applications.

Talent for innovation has been the company’s strength ever since as a result of consistent and continuous investment into Research and Development (R&D) as well as into tire technology, tire machinery and tire manufacturing processes. Its independent R&D Center in Bhuj ensures research into innovative product design and development as well as sustainable materials. This includes ‘the tire of the future’ project as well as new compounding methods by using rubber obtained from the Russian Dandelion TKS as a renewable alternative to natural rubber. In addition, it produces in-house its own tire molds and carbon black pigments. This provides company with major autonomy and ensures enhanced quality control throughout the entire supply chain.

Business area of the company

The company is primarily engaged into Specialty ‘Off Highway Tire segment’ which is consisting of Agriculture, Industrial, Construction, Earthmoving, Mining, Port, Lawn and Garden and All-Terrain Vehicle (ATVs) Tires, etc. This segment is highly technical & capital intensive and known as ‘large varieties low volume segment’ where any credible player needs to maintain large number of Stock Keeping Units (SKUs) to meet the diverse requirement of its customers worldwide. While the sub segment (agriculture) is largely known as non-cyclical in nature, the other sub segment (industrial, construction and mining) is generally considered as cyclical and the performance of it is largely linked to overall economic outlook of the world. The market for company’s products is mainly Europe, America, Australasia and India.

Products:

  • Agricultural tires
  • Industrial tires
  • OTR tires
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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