Balkrishna Industries - Q2FY21 Result Update - ICICI Direct

Balkrishna Industries (BIL) reported stellar Q2FY21 results. Standalone revenue was at Rs. 1,579 crore (up 47% YoY), amid ~36% rise in volumes to 61,224 MT. Margins rose 903 bps YoY to a near five-year high of 34% amid 494 bps gross margin expansion and savings in employee costs and other expenses. Consequent PAT came in at Rs. 340 crore (up 16.7% YoY). BIL declared second interim dividend of Rs. 4/share (record date: November 14).

Valuation & Outlook

For BIL, sales, PAT are seen growing at 11%, 12% CAGR, respectively, in FY20-23E. BIL continues to broadly deliver on stated growth and margin guidance. BIL's net debt free B/S, double-digit return ratios and strong cash generation provides us margin of safety. As a result, we continue to hold a positive view on the stock and retain our BUY rating with a revised target price of Rs. 1,700; valuing it at 25x FY22E EPS of Rs. 68.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_BalkrishnaInds_Q2FY21.pdf

Shares of BALKRISHNA INDUSTRIES LTD. was last trading in BSE at Rs.1581.95 as compared to the previous close of Rs. 1589.35. The total number of shares traded during the day was 5793 in over 663 trades.

The stock hit an intraday high of Rs. 1610 and intraday low of 1575. The net turnover during the day was Rs. 9176678.

Source : Equity Bulls

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