⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
BALKRISIND - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | BALKRISIND | Market Cap | 42,066 Cr. | Current Price | 2,175 ₹ | High / Low | 2,818 ₹ |
| Stock P/E | 32.6 | Book Value | 540 ₹ | Dividend Yield | 0.74 % | ROCE | 16.5 % |
| ROE | 15.5 % | Face Value | 2.00 ₹ | DMA 50 | 2,377 ₹ | DMA 200 | 2,438 ₹ |
| Chg in FII Hold | 0.30 % | Chg in DII Hold | -0.13 % | PAT Qtr | 375 Cr. | PAT Prev Qtr | 265 Cr. |
| RSI | 34.4 | MACD | -85.4 | Volume | 1,25,788 | Avg Vol 1Wk | 1,98,384 |
| Low price | 2,020 ₹ | High price | 2,818 ₹ | PEG Ratio | 7.50 | Debt to equity | 0.35 |
| 52w Index | 19.4 % | Qtr Profit Var | -14.7 % | EPS | 66.7 ₹ | Industry PE | 24.8 |
📊 Financial Overview
- Revenue & Profitability: PAT at 375 Cr. vs 265 Cr. prior, but quarterly profit variation (-14.7%) indicates volatility.
- Margins & Returns: ROCE (16.5%) and ROE (15.5%) are decent, reflecting moderate efficiency.
- Debt: Debt-to-equity ratio at 0.35, manageable leverage.
- Cash Flow: EPS at 66.7 ₹, consistent but modest relative to valuation multiples.
💹 Valuation Metrics
- P/E Ratio: 32.6 vs Industry PE of 24.8 → Slightly overvalued.
- P/B Ratio: Current Price ₹2,175 vs Book Value ₹540 → Stretched valuation.
- PEG Ratio: 7.50 → Suggests poor valuation relative to growth.
- Intrinsic Value: Current price above fair value zone, limited upside.
🏢 Business Model & Competitive Advantage
- Strong presence in off-highway and specialty tires with global exports.
- Brand recognition and niche market positioning provide resilience.
- However, earnings volatility and stretched valuations limit competitive strength.
📈 Entry Zone Recommendation
- Technicals: RSI at 34.4 (oversold), MACD negative, price below 50DMA & 200DMA.
- Suggested entry zone: ₹2,000–₹2,100 for accumulation.
- Long-term holding viable if profitability stabilizes and valuations normalize.
✅ Positive
- Strong industry presence in niche tire markets.
- Debt-to-equity ratio low (0.35).
- EPS at 66.7 ₹ supports valuation.
- FII holding increased (+0.30%).
⚠️ Limitation
- Quarterly profit variation (-14.7%) indicates volatility.
- P/E ratio (32.6) above industry average.
- PEG ratio (7.50) signals poor growth-adjusted valuation.
- DII holding reduced (-0.13%).
📉 Company Negative News
- DII holding reduced (-0.13%).
- Weak technical momentum with MACD negative.
📈 Company Positive News
- FII holding increased (+0.30%).
- Stable EPS and strong export-driven business model.
🏭 Industry
- Industry PE at 24.8, lower than company’s 32.6.
- Tire sector stable with long-term demand in agriculture and off-highway vehicles.
🔎 Conclusion
- Balkrishna Industries shows strong niche positioning and moderate efficiency but faces earnings volatility.
- Valuation is stretched compared to industry peers, limiting near-term upside.
- Best strategy: Accumulate in the ₹2,000–₹2,100 zone.
- Long-term holding viable if profitability stabilizes and valuation aligns closer to industry averages.