Sharekhan is bullish on Balkrishna Industries has recommended buy rating on the stock with a target price of Rs 1770 in its research report dated September 30, 2020.
Sharekhan's research report on Balkrishna Industries
Given the strong pickup in demand in July and August, BKT is likely to improve its earlier guidance of flat volume growth in FY2021; favourable currency movement and operating leverage would drive margin expansion. BKT is expected to continue outpacing the industry, driven by new product introduction, enhanced distribution network, and increased OEM business; BKT aims to double its global market share to 10%. We have raised our earnings estimates and rollover our multiple to FY2023 earnings. BKT has amongst the best financial metrices in the tyre industry with debt free at net level, robust return rations, and FCFF yield. BKT remains our preferred pick in the automotive space.
We recommend Buy on Balkrishna Industries (BKT) with Price target of Rs 1,770; company to deliver strong 17% CAGR over FY20-23 period.
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