Sharekhan has given Buy recommendation for Balkrishna Industries with a target price of Rs. 2700 in its research report issued on Nov 22, 2021
Sharekhan’s research report on Balkrishna Industries
For Q2FY2022, Balkrishna’s results were below expectations on the operational front, however management has revised volume guidance upwards. We expect strong double-digit volume growth in FY2022E, driven by infrastructure creation and pick-up in economic activity and continued market share gains. We expect earnings to report a 31.8% CAGR during FY2021-FY2023E, mainly driven by volume growth.
Outlook
We upgrade our rating on Balkrishna Industries Limited’s (Balkrishna) to Buy with a revised PT of Rs. 2,700 given robust outlook and earnings growth. The stock trades at P/E multiple of 21.6x and EV/EBITDA multiple of 15.1x its FY2023E estimates.