ICICI Direct is bullish on Balkrishna Industries has recommended buy rating on the stock with a target price of Rs 1400 in its research report dated December 01, 2016.
We believe BIL is an export dominated niche play and is well placed to capture the demand revival opportunity. The management has indicated at signs of demand revival across geography, visible from its strong H1FY17 performance. Margins are also expected to sustain considering benign input cost and better product mix, going forward. Its strategy of higher utilisation, repayment of debt & deepening its reach will further supplement its growth. Thus, we value BIL at 15x FY18E EPS to arrive at a target price of Rs 1400 with a BUY recommendation on the stock.
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