Sharekhan's research report on Balkrishna Industries
Reported EBITDA at Rs 518 crore in Q2FY24 against estimate of Rs 509 crore. Management has guided for a stable demand scenario in H2FY24 compared to demand pattern in H1FY24. Stock trades at P/E multiple of 23.6x and EV/EBITDA multiple of 14.9x its FY26 estimates.
Outlook
We retain our Hold rating on the Balkrishna Industries (BKT) with revised PT of Rs 2720 in hope of revival in demand in medium term and improvement in EBITDA margins on steady RM cost trend.
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