Invest in Balkrishna Industries, says SP Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, " Balkrishna Industries is a tire maker company; 90 percent is exports. They are more into the OTR tires, which have very good margins and with the consistent performance."

"They have posted EPS of Rs 12.5 for this Q3. They have been consistently posting good numbers, if you really take whether QoQ or Y-o-Y. For FY15 one can expect an EPS of Rs 60 from the company. The topline was at about Rs 885 crore. There has been improvement in the margin. Operating profit moved to Rs 186 crore from Rs 163 crore on a sequential basis with PAT at about maybe Rs 124 crore against Rs 108 crore. So taking all this into account, I think the stock looks quite good from an investment point of view."

"A Rs 50 EPS could be for FY14, but I am expecting a good jump, because 90 percent of their turnover coming in from exports. It is an Rs 4,000 crore topline company and the expansions which they have recently carried out is also likely to give the results into the FY15 numbers. So expect an EPS of closer to about Rs 56-60 in a broader range for FY15. So take a PE multiple of close to about 5 times it is ruling out, but from couple of month’s point of view the stock looks good."

Disclosure: Analyst has no personal interest in the above stock.