Motilal Oswal's research report on Balkrishna Industries
Balkrishna Industries’ (BIL) 3Q earnings at INR3.8b were above our estimate of INR2.8b, primarily due to MTM gains of INR360m and higher other income. However, despite a healthy pick-up in volume on a QoQ basis, its margin remained under pressure at 22.9% (vs. our est. of 23.1%) due to adverse mix and the impact of US tariffs.
Outlook
We have not changed our target multiple for BIL yet and continue to value it at 22x Dec’27E. However, this may warrant a revision going forward if BIL’s returns plunge due to this foray. Reiterate Neutral with a TP of INR2,229.
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