Q3FY21 Result Update - Balkrishna Industries - ICICI Direct

Balkrishna Industries (BIL) reported robust Q3FY21 results. Standalone revenue was at Rs. 1,505 crore (up 30% YoY), amid ~26% rise in volumes to 59,810 MT. EBITDA for the quarter at Rs. 476 crore was higher by 40% YoY with margins at 31.7% (down 233 bps QoQ). Consequent standalone PAT was at Rs. 322 crore (up 46% YoY), aided in part by higher other income - which included forex gains amounting to Rs. 15 crore. BIL declared a third interim dividend of Rs. 5/share (record date: February 16, 2021).

Valuation & Outlook

Against several tyre peers, BIL has over the years developed anti-commodity behaviour (high operating margins & return ratios). We believe BIL deserves to command premium valuations as a result and upgrade the stock from HOLD to BUY with a revised target price of Rs. 2,100 i.e. 27 P/E (i.e. ~1.5x PEG) on FY23E EPS of Rs. 78 (previous target price Rs. 1,770).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_BalkrishnaInds_Q3FY21.pdf

Shares of BALKRISHNA INDUSTRIES LTD. was last trading in BSE at Rs.1653 as compared to the previous close of Rs. 1648.4. The total number of shares traded during the day was 33239 in over 2082 trades.

The stock hit an intraday high of Rs. 1678.6 and intraday low of 1647.3. The net turnover during the day was Rs. 55203987.

Source : Equity Bulls

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