Buy Balkrishna Industries; target of Rs 3195: Sharekhan

Sharekhan's research report on Balkrishna Industries

A 4.7% beat in topline resulted in in-line EBITDA, though PAT was 14.3% above estimates on higher-than-expected other income. Amidst raw material cost inflation and rising freight costs, management is looking for a minor growth in volumes and flat EBITDA margins in FY25.Stock trades at P/E multiple of 24.1x and EV/EBITDA multiple of 16.6x its FY26 estimates.

Outlook

We maintain Buy on BKT with an unchanged PT of Rs 3195 in expectation of sustenance of its market share and hope of a stable margin profile.