Auto Components
Balkrishna Industries is a prominent company in the Tyres & Rubber Products sector, with the stock ticker BALKRISIND.
With a market capitalization of Rs. 49,481.4 Crores, the company is a significant player in the tire manufacturing industry, serving customers in India, Europe, North America, and other international markets.
Balkrishna Industries specializes in producing off-highway tires that cater to a variety of applications, including:
Founded in 1961, the company is headquartered in Mumbai, India, and has demonstrated impressive financial performance. Over the last twelve months, it generated revenues of Rs. 10,986.6 Crores and earned a profit of Rs. 1,773.2 Crores in the past four quarters.
Balkrishna Industries is committed to rewarding its investors, offering a dividend yield of 0.78% per year, with Rs. 20 returned in dividends per share over the last twelve months. Additionally, the company has shown robust revenue growth of 36.2% over the past three years, indicating a strong business trajectory.
Summary of Balkrishna Industries's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Jan 25
Management Outlook:
Balkrishna Industries (BKT) maintains a cautious but confident outlook for FY25, projecting minor sales volume growth despite persistent market challenges, particularly in Europe. Management emphasized leveraging strong product profiles, brand investments, and geographic diversification to sustain growth.
Key Points:
Volume & Revenue Growth:
Regional Performance:
Margin & Profitability:
Strategic Initiatives:
Challenges & Risks:
Dividend & Financial Health:
Management remains focused on capacity expansion, product innovation, and geographic diversification to navigate near-term headwinds while targeting long-term market share gains.
Last updated: Jan 25
Question 1: Siddhartha Bera (Nomura)
What is the demand outlook across regions, especially Europe and Rest of the World (ROW)? How sustainable is ROW growth?
Answer: Europe remains challenging, but Americas and India showed growth. ROW growth is sustainable due to branding investments and market expansion. No specific country dominates ROW; growth is broad-based.
Question 2: Raghunandhan N.L. (Nuvama)
Did the company guide for marginal growth in Q4 or FY25? What are raw material and freight cost trends?
Answer: The minor sales volume growth forecast applies to FY25 (full year). Raw material costs may rise 100"“200 bps in Q4 due to lagged impact. Freight costs are stable post-reduction.
Question 3: Mumuksh Mandlesha (Anand Rathi)
How did Europe's agri/OEM segments perform? Will Q4 volumes grow? Why did employee costs rise?
Answer: Europe segmental breakdown is unavailable. Q4 outlook remains challenging. Employee costs rose due to capex-related hiring. Euro-INR rate averaged Rs.91 in Q3; expected Rs.92"“93 ahead.
Question 4: Pramod Amthe (InCred Equities)
Any plans to expand into domestic tire segments? What is the carbon black project's FY26 outlook?
Answer: No domestic expansion planned. New hires focus on global off-highway market share. Carbon black (30,000 MT) is under customer testing; profitability may align with industry averages.
Question 5: Abhishek Jain (AlfAccurate Advisors)
What drove US growth? Are there tariff risks?
Answer: Americas grew due to product and infrastructure investments. No current US tariffs; Mexico/Canada contribution details undisclosed.
Question 6: Jinesh Gandhi (Ambit Capital)
Were there price hikes? What is the carbon black plant's revenue potential? FY26 capex outlook?
Answer: No price hikes in Q3 or Q4. Carbon black's revenue/ramp-up timeline is uncertain. FY26 capex guided at Rs.1,100"“1,200 crores.
Question 7: Abhinav G. (SBI Pension Funds)
Which regions constitute ROW? How will EU deforestation regulations impact?
Answer: ROW includes Africa, Middle East, Asia, Australia, and New Zealand. EU regulations deferred to January 2026; no pre-regulation inventory buildup expected.
Question 8: Ravi Gupta (InCred Equities)
Can FY26 volumes grow double-digit amid easing geopolitical risks?
Answer: Too early to confirm; growth depends on market stability. Capacity and investments are ready, but geopolitical uncertainties persist.
Question 9: Ajox Frederick (Sundaram Mutual Fund)
Why is ROW growing? What drives FY25 growth concerns?
Answer: ROW growth stems from branding and product focus. Europe's underperformance (43% of sales) remains a concern despite Americas/India growth.
Question 10: Viraj (SiMPL)
What are OE demand trends? Any supply chain disruptions?
Answer: Global OE demand is stable. Red Sea issues haven't caused inventory imbalances; channel inventory is normal.
Question 11: Ganesh Nagarsekar (Bharat Bet Research)
What drove Americas' growth? FY26 capex guidance?
Answer: Americas grew due to product and infrastructure focus. FY26 capex guided at Rs.1,100"“1,200 crores.
Question 12: Ankit Kanodia (Smart Sync Services)
Any buyback plans amid stagnant stock price?
Answer: No buybacks planned. Cash is prioritized for growth capex, branding, and capacity expansion.
Question 13: Sonal Gupta (HSBC Mutual Fund)
How did Europe's market fare in CY24? What is BKT's India market share?
Answer: Europe saw minor CY24 volume decline. India holds ~6"“7% off-highway share (10% in agri).
Question 14: Lokesh Manik (Vallum Capital)
Can ROW/US replicate India's growth trajectory?
Answer: Americas and ROW growth will occur simultaneously. US potential is significant; ROW's pace varies by region.
Question 15: Chirag (Keynote Capitals)
What is carbon black's revenue share? Any plans for lithium-ion batteries?
Answer: Carbon black contributes ~9% of revenue. No plans for lithium-ion battery applications currently.
Valuation | |
---|---|
Market Cap | 49.83 kCr |
Price/Earnings (Trailing) | 28.1 |
Price/Sales (Trailing) | 4.54 |
EV/EBITDA | 15.89 |
Price/Free Cashflow | 52.11 |
MarketCap/EBT | 21.21 |
Fundamentals | |
---|---|
Revenue (TTM) | 10.99 kCr |
Rev. Growth (Yr) | 17.42% |
Rev. Growth (Qtr) | 9.46% |
Earnings (TTM) | 1.77 kCr |
Earnings Growth (Yr) | 47.17% |
Earnings Growth (Qtr) | 29.56% |
Profitability | |
---|---|
Operating Margin | 21.38% |
EBT Margin | 21.38% |
Return on Equity | 18.87% |
Return on Assets | 12.23% |
Free Cashflow Yield | 1.92% |
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Growth: Good revenue growth. With 36.2% growth over past three years, the company is going strong.
Size: Market Cap wise it is among the top 20% companies of india.
Profitability: Very strong Profitability. One year profit margin are 16%.
Balance Sheet: Strong Balance Sheet.
Smart Money: Smart money has been increasing their position in the stock.
No major cons observed.
Comprehensive comparison against sector averages
BALKRISIND metrics compared to Auto
Category | BALKRISIND | Auto |
---|---|---|
PE | 27.45 | 26.61 |
PS | 4.43 | 1.62 |
Growth | 17.6 % | 5.2 % |
BALKRISIND vs Auto (2021 - 2025)
Understand Balkrishna Industries ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
RAJIV PODDAR | 27.71% |
VKP ENTERPRISES LLP | 24.95% |
HDFC VALUE FUND | 5.57% |
KHUSHBOO RAJIV PODDAR | 3.93% |
KOTAK MAHINDRA TRUSTEE CO LTD A/C KOTAK MSCI INDIA | 1.79% |
GOVERNMENT PENSION FUND GLOBAL | 1.74% |
RISHABH SURESHKUMAR PODDAR | 1.44% |
TMP ENTERPRIES LLP | 0.26% |
S P INVESTRADE (INDIA) LIMITED | 0% |
BALGOPAL HOLDING & TRADERS LTD | 0% |
PODDAR BROTHERS INVESTMENT PRIVATE LIMITED | 0% |
RAP ENTERPRISES LLP | 0% |
AKP ENTERPRISES LLP | 0% |
SHYAMLATA SURESHKUMAR PODDAR | 0% |
ARVINDKUMAR M PODDAR | 0% |
VIJAYALAXMI A PODDAR | 0% |
Distribution across major stakeholders
Distribution across major institutional holders
Investor Care | |
---|---|
Dividend Yield | 0.78% |
Dividend/Share (TTM) | 20 |
Shares Dilution (1Y) | 0.00% |
Diluted EPS (TTM) | 91.73 |
Financial Health | |
---|---|
Current Ratio | 1.35 |
Debt/Equity | 0.33 |
Debt/Cashflow | 0.67 |
Detailed comparison of Balkrishna Industries against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
MRF | M.R.F.Tyres & Rubber Products | 55.23 kCr | 27.82 kCr | +15.57% | -0.01% | 31.5 | 1.99 | +11.47% | -13.45% |
APOLLOTYRE | Apollo TyresTyres & Rubber Products | 29.18 kCr | 26.09 kCr | +7.84% | -6.69% | 22.61 | 1.12 | +2.47% | -28.10% |
CEATLTD | CeatTyres & Rubber Products | 12.31 kCr | 12.81 kCr | +5.72% | +20.63% | 25.93 | 0.96 | +8.10% | -28.63% |
JKTYRE | JK Tyre & IndustriesTyres & Rubber Products | 8.42 kCr | 14.71 kCr | +10.76% | -24.94% | 14.46 | 0.57 | -1.81% | -21.93% |
TVSSRICHAK | TVS SrichakraTyres & Rubber Products | 2.21 kCr | 3.21 kCr | +14.60% | -30.56% | 63.93 | 0.69 | +12.31% | -67.48% |