Hold Balkrishna Industries; target of Rs 2446: Sharekhan

Sharekhan's research report on Balkrishna Industries

The benefit of a decline in freight cost and partial clearance of high raw material inventory supported the operating performance in Q4FY23. A significant improvement would be led more by the volume uptick than a correction in input cost as the partial pass on cost benefits in a competitive market cannot be ruled out. Stock trades at a P/E multiple of 24.7 and EV/EBITDA multiple of 15.6x its FY2025E estimates.

Outlook

We retain a Hold rating on the stock with a revised target price of Rs. 2,446 due to continued destocking in European markets and premium valuation.