BALKRISIND - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.6

Here’s a detailed fundamental breakdown of Balkrishna Industries (BALKRISIND), specializing in off-highway tire manufacturing

🧾 Core Financials & Performance

EPS: ₹75.2 — decent, supports the current valuation.

PAT Decline: ₹288 Cr vs ₹369 Cr (–41.2%) — sharp drop, warrants caution.

ROE: 15.8% and ROCE: 16.7% — healthy returns but declining trend raises questions.

Debt-to-Equity: 0.31 — low, company remains conservatively leveraged.

Dividend Yield: 0.58% — modest return, suggests reinvestment strategy.

💸 Valuation Metrics

P/E Ratio: 36.4 — slightly high vs industry PE of 33.9; pricing reflects past performance more than future visibility.

P/B Ratio: ~5.1 (₹2,736 ÷ ₹537) — somewhat expensive for cyclical industrials.

PEG Ratio: 15.1 — extremely high, implies earnings growth doesn’t justify the price; overvalued.

Intrinsic Value: Likely below CMP due to weak earnings momentum.

🏭 Business Model & Strategic Edge

Specialty: Agricultural, mining, and industrial tires — niche off-highway segment.

Strengths

Global distribution with brand recognition.

Operational efficiency and product customization.

Challenges

PAT volatility and demand dependency on global agri cycles.

Drop in FII holdings (–0.96%) may reflect institutional caution.

📉 Technical & Sentiment Snapshot

RSI: 64.4 — leaning towards overbought; momentum cooling.

MACD: +53.7 — bullish but nearing exhaustion phase.

Volume: Higher than average — increased trading but may indicate short-term exit activity.

🎯 Recommended Entry Zone

₹2,500 – ₹2,650: Safer accumulation zone closer to 200 DMA.

If broader market corrects or PAT stabilizes, opportunity may arise sub-₹2,400.

🔒 Long-Term Holding View

Ideal for selective long-term positioning (3–5 years) if

Rural/agri recovery strengthens.

Export cycles improve globally.

Margins rebound with cost efficiency.

For more tactical positioning, I can compare it to MRF or Apollo Tyres, and explore whether Balkrishna’s niche focus offers better risk-adjusted returns. Just tap me when ready.

Edit in a page