Balkrishna Industries Ltd (BALKRISIND) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Apollo Tyres

JK Tyre & Indust

TVS Srichakra

MRF

Goodyear India

Tolins Tyres

Balkrishna Inds

CEAT

Megamont

Modi Rubber

Horizon Reclaim

Why is Balkrishna Industries Ltd ?

Poor long term growth as Operating profit has grown by an annual rate 1.02% of over the last 5 years

Flat results in Jun 26

ROCE(HY) Lowest at 11.80%
CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 64.51 cr
DEBT-EQUITY RATIO(HY) Highest at 0.38 times

With ROCE of 11.2, it has a Very Expensive valuation with a 3.7 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -7.38%, its profits have fallen by -3.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.38% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tyres & Rubber Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Balkrishna Inds for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Balkrishna Inds

-7.38%

-0.21

34.38%

Sensex

-3.81%

-0.28

13.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.63%

EBIT Growth (5y)

1.02%

EBIT to Interest (avg)

41.66

Debt to EBITDA (avg)

1.37

Net Debt to Equity (avg)

0.25

Sales to Capital Employed (avg)

0.81

Tax Ratio

24.04%

Dividend Payout Ratio

18.69%

Pledged Shares

Institutional Holding

34.93%

ROCE (avg)

15.29%

ROE (avg)

15.72%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.37

EV to EBIT

28.97

EV to EBITDA

19.92

EV to Capital Employed

3.70

EV to Sales

4.39

PEG Ratio

Dividend Yield

0.65%

ROCE (Latest)

11.16%

ROE (Latest)

11.35%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 20.24 times

NET SALES(Q)

Highest at Rs 3,455.27 cr

PBDIT(Q)

Highest at Rs 744.40 cr.

PBT LESS OI(Q)

Highest at Rs 501.38 cr.

PAT(Q)

Highest at Rs 450.77 cr.

EPS(Q)

Highest at Rs 23.32

-7What is not working for the Company

ROCE(HY)

Lowest at 11.80%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 64.51 cr

DEBT-EQUITY RATIO(HY)

Highest at 0.38 times

Loading Valuation Snapshot...

Here's what is working for Balkrishna Inds

Operating Profit to Interest - Quarterly

Highest at 20.24 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 501.38 cr has Grown at 44.1% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 347.96 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 450.77 cr has Grown at 45.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 310.78 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 3,455.27 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 3,455.27 cr has Grown at 27.7% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 2,705.77 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 744.40 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 501.38 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 450.77 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 23.32

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Balkrishna Inds

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 64.51 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Highest at 0.38 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio