ICICI Direct has given Buy recommendation for Balkrishna Industries recommended buy rating on the stock with a target price of Rs 2900 in its research repo with a target price of Rs. 2900 in its research report issued on Nov 12, 2021
ICICI Direct’s research report on Balkrishna Industries
Balkrishna Industries (BIL) is the leader in the niche tyre segment used in heavy machinery for mining and agriculture purposes. Exports form lion’s share of its sales at ~80% of its revenues • Channel mix: replacement account for ~70% while OEM share is pegged at ~26%. Agriculture accounts for ~64% of volumes with OTR share at ~32% • It has consistently operated with high (>20%) margins & return ratios.
We value BIL at revised target price of Rs 2,900 i.e. 32x P/E on FY23-24E average EPS of Rs 90.6 (earlier target price Rs 2,825).