Balkrishna Industries Ltd - Stock Valuation and Financial Performance

BSE: 502355 | NSE: BALKRISIND | Tyres & Allied | Mid Cap

Balkrishna Inds. Share Price

2,413.90 -3.20 -0.13%
as on 12-Apr'24 10:20

DeciZen - make an informed investing decision on Balkrishna Inds.

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Semi Strong

Balkrishna Industries stock performance -

mw4me loader
P/E Ratio (SA):
38.54
Market Cap:
46,726.7 Cr.
52-wk low:
1,952.1
52-wk high:
2,793.7

Is Balkrishna Industries Ltd an attractive stock to invest in?

1. Is Balkrishna Industries Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Balkrishna Industries Ltd is a good quality company.

2. Is Balkrishna Industries Ltd undervalued or overvalued?

The key valuation ratios of Balkrishna Industries Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is Balkrishna Industries Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Balkrishna Industries Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Balkrishna Inds.:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 14.8%7.5%8.6%11.9%10.6%12.6%14.3%17%14.5%9.3%-
Value Creation
Index
0.1-0.4-0.4-0.1-0.1-0.10.30.50.3-0.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 3,5773,7803,2233,7284,4475,2454,7825,7588,2679,8118,943
Sales YoY Gr.-5.7%-14.8%15.7%19.3%17.9%-8.8%20.4%43.6%18.7%-
Adj EPS 28.615.619.328.626.633.541.855.959.845.962.7
YoY Gr.--45.4%23.9%48.2%-7.2%26%24.8%33.6%7%-23.2%-
BVPS (₹) 97.5118.5143.9183.7211.9242260.1310.8358.2392.6441.7
Adj Net
Profit
5523023745545146488081,0801,1568881,212
Cash Flow from Ops. 5949791,0958427538131,1641,3638811,414-
Debt/CF from Ops. 42.41.71.61.110.70.72.82.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 11.9%17.1%27.1%18.7%
Adj EPS 5.4%11.6%3.2%-23.2%
BVPS16.7%13.1%14.7%9.6%
Share Price 25.6% 20.5% 14.6% 17.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
33.414.414.717.513.414.816.719.617.912.215
Op. Profit
Mgn %
27.619.526.530.424.925.126.23124.317.822.5
Net Profit
Mgn %
15.4811.614.911.612.416.918.8149.113.6
Debt to
Equity
1.310.70.40.20.20.20.20.40.4-
Working Cap
Days
15614414012313012814013113413375
Cash Conv.
Cycle
6459473341506150587614

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 27.06%

Return on Equity has declined versus last 3 years average to 15.00%

Net Profit has been subdued in last 3 years 3.17%

Sales growth is not so good in last 4 quarters at -8.38%

Latest Financials - Balkrishna Industries Ltd.

Standalone Consolidated
TTM EPS (₹) 62.7 64.4
TTM Sales (₹ Cr.) 8,943 9,004
BVPS (₹.) 441.7 441.3
Reserves (₹ Cr.) 8,500 8,492
P/BV 5.47 5.48
PE 38.54 37.55
From the Market
52 Week Low / High (₹) 1952.05 / 2793.70
All Time Low / High (₹) 0.58 / 2793.70
Market Cap (₹ Cr.) 46,727
Equity (₹ Cr.) 38.7
Face Value (₹) 2
Industry PE 27.5

Management X-Ray of Balkrishna Inds.:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Balkrishna Inds.

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales3,5773,7803,2233,7284,4475,2454,7825,7588,2679,811
Operating Expenses 2,6833,0452,3842,5963,3403,9323,6483,9726,2628,066
Manufacturing Costs362439370366484549451558746874
Material Costs1,7221,9681,4091,5822,1502,4632,1272,3033,7794,956
Employee Cost 139194206224249264286326380404
Other Costs 4604433984234576567857851,3571,832
Operating Profit 8947358391,1321,1081,3121,1341,7862,0051,744
Operating Profit Margin (%) 25.0%19.4%26.0%30.4%24.9%25.0%23.7%31.0%24.2%17.8%
Other Income 14280149250336214366161431338
Interest 2547402114119103774
Depreciation 165240282304311333368406444557
Exceptional Items 0000000000
Profit Before Tax 7187286651,0561,1181,1831,1231,5311,9541,451
Tax 229239227341379401178376544372
Profit After Tax 4884894397167397829451,1551,4111,079
PAT Margin (%) 13.7%12.9%13.6%19.2%16.6%14.9%19.8%20.1%17.1%11.0%
Adjusted EPS (₹)25.325.322.737.038.240.548.959.873.055.8
Dividend Payout Ratio (%)4%5%12%11%21%20%41%28%38%36%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 1,8852,2922,7823,5514,0954,6795,0286,0076,9257,589
Share Capital 19191919393939393939
Reserves 1,8652,2722,7623,5324,0574,6404,9895,9696,8867,550
Minority Interest0000000000
Debt2,3441,9931,2727676198298618932,4423,254
Long Term Debt1,6561,35983121932215011,038
Short Term Debt6886334415486168278598921,9412,215
Trade Payables373380337363397357361633808487
Others Liabilities 2726509911,074734565481506683943
Total Liabilities 4,8745,3155,3825,7565,8456,4306,7318,04010,85712,272

Fixed Assets

Gross Block3,0013,3213,1423,3853,6663,9354,7835,2436,3448,247
Accumulated Depreciation6729062845888961,2261,5921,9962,4372,969
Net Fixed Assets2,3292,4152,8582,7972,7712,7093,1913,2483,9075,278
CWIP 4766342311101185855868561,2581,392
Investments 4274458571,3501,1031,0831,0631,4181,8972,037
Inventories5293923884605947135809091,6391,592
Trade Receivables6186033804125025686497301,0981,254
Cash Equivalents 1043130314255646543538
Others Assets4843953646147327166168251,022681
Total Assets 4,8745,3155,3825,7565,8456,4306,7318,04010,85712,272

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 5949791,0958427538131,1641,3638811,414
PBT 7187286651,0561,1181,1831,1231,5311,9541,451
Adjustment 204286407215241255279258209545
Changes in Working Capital -149179259-113-215-21257-77-825-244
Tax Paid -176-210-233-313-386-407-286-349-457-338
Cash Flow From Investing Activity -1,241-433-569-534-92-621-656-1,159-1,889-1,772
Capex -858-366-239-161-411-720-761-908-1,580-1,741
Net Investments -394-77-344-4043058886-289-352-88
Others 11101432141120394357
Cash Flow From Financing Activity 390-130-656-616-655-173-521-1941,003359
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 18040-974-610-487-116-2391831,664385
Interest Paid -25-46-35-22-13-10-7-10-8-40
Dividend Paid -17-22-91-64-121-174-513-232-560-309
Others 252-10144480-34128238-136-93323
Net Cash Flow -257416-129-308619-1310-51
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)29.5623.4117.2922.619.3417.8319.4720.9421.8214.86
ROCE (%)19.2217.4315.1522.5123.0122.8819.8624.124.4815.1
Asset Turnover Ratio0.820.750.610.680.770.850.730.780.880.85
PAT to CFO Conversion(x)1.2222.491.181.021.041.231.180.621.31
Working Capital Days
Receivable Days57585538373746444044
Inventory Days49444341434549475660
Payable Days65709381655662797048

Balkrishna Industries Ltd Stock News

Balkrishna Industries Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Balkrishna Inds. on 12-Apr-2024 10:20 is ₹2,413.9.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Apr-2024 10:20 the market cap of Balkrishna Inds. stood at ₹46,726.7.
The latest P/E ratio of Balkrishna Inds. as of 12-Apr-2024 10:20 is 38.54.
The latest P/B ratio of Balkrishna Inds. as of 12-Apr-2024 10:20 is 5.47.
The 52-week high of Balkrishna Inds. is ₹2,793.7 and the 52-week low is ₹1,952.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Balkrishna Inds. is ₹8,943 ( Cr.) .

About Balkrishna Industries Ltd

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
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