Anand Rathi has given Buy recommendation for Balkrishna Industries with a target price of Rs. 3066 in its research report issued on May 16, 2022

Anand Rathi’s research report on Balkrishna Industries

Strong demand across regions for Balkrishna Industries and capacity additions were the highlights of the quarter. Gross margin expanded as the company passed on higher raw material costs, however, rising freight and energy costs impacted Ebitda margin.

Outlook

We expect the strong demand momentum to continue led by Europe. Recent capacity addition and a subsequent ramp-up by end-H1 FY23 augurs well for a healthy volume outlook. We maintain a Buy, at a revised TP of Rs.3,066 (30x FY24e).

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