HSBC has maintained Hold rating on Balkrishna Industries with increased target price at Rs 1,240 from Rs 1,140 earlier as third quarter demonstrated strong volume growth which boosted earnings.
The research house expects further demand pick-up which will improve company's return on capital employed.
Company is still at 66 percent utilisation rate with zero net debt and enjoys significant cost and focus advantages in the off highway tyres, HSBC said.
Balkrishna Industries share price closed at Rs 1,105.05, down Rs 28.20, or 2.49 percent on the BSE.
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