Latest news with #BalkrishnaIndustriesLtd
Yahoo
26-05-2025
- Automotive
- Yahoo
Balkrishna Industries Ltd (BOM:502355) Q4 2025 Earnings Call Highlights: Strategic Growth ...
Release Date: May 24, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Balkrishna Industries Ltd (BOM:502355) has set a strategic goal to reach a revenue milestone of INR 23,000 crore by 2030, with a clear plan involving three growth levers. The company has achieved global leadership in the agricultural tire sector and plans to reinforce this position across all geographies. Balkrishna Industries Ltd (BOM:502355) is expanding its carbon black plant, which is expected to enhance revenue and margin potential. The company is planning to enter new tire categories for the Indian market, which is expected to contribute significantly to revenue by 2030. Despite geopolitical tensions and global economic uncertainty, the company delivered its highest-ever annual sales revenue, highlighting the robustness of its business strategy. Profit after tax for the quarter was down by 25%, primarily due to M2M loss and higher financial costs. The company faces challenges in entering new competitive segments, requiring significant investment in brand building and network expansion. There is uncertainty in providing guidance for the core business due to volatile global scenarios, including trade wars and geopolitical tensions. The company is absorbing part of the increased US tariff costs, which could impact profitability. The expansion into new tire categories may initially dilute margins until these segments reach full commercialization and scale. Warning! GuruFocus has detected 2 Warning Signs with BOM:502355. Q: Can you provide more clarity on the new segments Balkrishna Industries plans to enter over the next five years, considering the competitive nature of these markets? A: (Unidentified_4) Our strategy is based on our demonstrated success in the agriculture and other off-highway segments in India over the last five years. We believe our all-steel radial technology will support our entry into the truck bus radial markets in India, which is growing at 6.5%. We are confident in our ability to create a difference in the Indian market. Q: With the new segments, will there be changes in investment plans, particularly in brand visibility and network expansion? A: (Unidentified_2) We plan to maintain our current level of investment in brand visibility. As our turnover increases, the percentage of spend will decrease, leading to cumulative benefits over the five-year journey. Q: What are the capacities for the pilot plants of PCR and TBR, and are you targeting domestic or export markets? A: (Unidentified_4) The initial capacity is for the domestic market. Our truck bus radial tires will come from our existing mining TBR capacity, allowing early market entry. The car radial entry will follow later, focusing initially on the domestic market. Q: Can you provide guidance for FY26 in terms of volume and the specialty carbon black business? A: (Unidentified_2) We cannot provide guidance due to global volatility. The specialty carbon black business started trials last quarter, and it will take time to progress. We expect peak utilization by FY27. Q: How does the current tariff situation affect your inventory and market share strategy? A: (Unidentified_2) Inventory levels at our distributor level are stable. We plan to evolve our market strategy based on the response we receive and aim to maintain competitive advantages as we enter new markets. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Standard
26-05-2025
- Business
- Business Standard
Volumes soar at Balkrishna Industries Ltd counter
Balkrishna Industries Ltd clocked volume of 88085 shares by 10:46 IST on BSE, a 22.78 times surge over two-week average daily volume of 3866 shares Narayana Hrudayalaya Ltd, J K Cements Ltd, Gujarat Narmada Valley Fertilizers & Chemicals Ltd, Glenmark Pharmaceuticals Ltd are among the other stocks to see a surge in volumes on BSE today, 26 May 2025. Balkrishna Industries Ltd clocked volume of 88085 shares by 10:46 IST on BSE, a 22.78 times surge over two-week average daily volume of 3866 shares. The stock lost 7.55% to Rs.2,458.95. Volumes stood at 8001 shares in the last session. Narayana Hrudayalaya Ltd saw volume of 1.99 lakh shares by 10:46 IST on BSE, a 13.95 fold spurt over two-week average daily volume of 14257 shares. The stock increased 3.54% to Rs.1,785.50. Volumes stood at 20837 shares in the last session. J K Cements Ltd witnessed volume of 15922 shares by 10:46 IST on BSE, a 10.69 times surge over two-week average daily volume of 1490 shares. The stock increased 5.85% to Rs.5,401.00. Volumes stood at 1832 shares in the last session. Gujarat Narmada Valley Fertilizers & Chemicals Ltd clocked volume of 2.02 lakh shares by 10:46 IST on BSE, a 5.97 times surge over two-week average daily volume of 33874 shares. The stock gained 3.48% to Rs.531.20. Volumes stood at 40630 shares in the last session. Glenmark Pharmaceuticals Ltd recorded volume of 31430 shares by 10:46 IST on BSE, a 4.02 times surge over two-week average daily volume of 7824 shares. The stock lost 1.66% to Rs.1,395.00. Volumes stood at 7706 shares in the last session.
News18
26-05-2025
- Automotive
- News18
Balkrishna Industries Crashes 10% On Price Target Cuts, Expansion Concerns; Key Points
Last Updated: Shares of Balkrishna Industries Ltd plunged over 10% following a wave of price target downgrades by brokerages; Check latest target price Balkrishna Industries Share Price Today: Shares of Balkrishna Industries Ltd plunged over 10% in Monday's trade following a wave of price target downgrades by brokerages. The declines came amid continued concerns over demand uncertainty and the company's expansion into new tyre segments — particularly the Premium Passenger Car Radial (PCR) and Truck and Bus Radial (TBR) categories — which analysts believe could weigh on return on equity (ROE) in the short term. The stock hit an intraday low of Rs 2,385, down 10.33%, and has now dropped 15.82% year-to-date in 2025, underperforming the BSE Auto index, which is up 2.12% in the same period. In terms of financial performance, Balkrishna's Q4FY25 revenue beat Bloomberg estimates by 4%, while EBITDA margin stood at 24.8%, just shy of the consensus 25% estimate. EBITDA remained flat year-on-year, slightly above expectations. According to Nomura India, Q4 volumes were 82,000 tonnes, unchanged year-on-year, while average selling prices (ASPs) rose 2.7% quarter-on-quarter. However, the bottom line disappointed due to lower other income and higher interest expenses, resulting in a 25% year-on-year decline in PAT. Nomura downgraded the stock from 'Buy' to 'Neutral', citing concerns over the potential ROE dilution from its diversification into new tyre segments. It revised the target price upward to Rs 3,242 from Rs 2,644 earlier, factoring in the medium-term potential but also noting execution risks. Motilal Oswal Financial Services (MOFSL) also flagged ongoing demand headwinds in Balkrishna's key export markets. The brokerage cut its FY26 and FY27 earnings estimates by 8% each, and expressed skepticism over the company's entry into the niche PCR and TBR segments. 'Whether Balkrishna can gain meaningful market share in these new categories without significantly diluting margins and returns remains a key uncertainty," MOFSL noted. While the stock's valuations are no longer demanding, future re-rating would hinge on execution success, it said. Meanwhile, Nirmal Bang Institutional Equities maintained a 'Hold' rating on the stock, trimming its target price to Rs 2,645 from Rs 2,718. The brokerage said it continues to project a 9% volume CAGR over FY25–FY27, with margins improving to 26.2% by FY27. Despite near-term concerns, it believes Balkrishna remains a strong franchise, and its low-cost operations and geographic marketing efforts could drive superior long-term margins. Disclaimer:Disclaimer: The views and investment tips by experts in this report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions. First Published:
Mint
26-05-2025
- Automotive
- Mint
Balkrishna Industries shares tumble over 10% after weak Q4 results, Nomura downgrade; should you still buy?
Shares of Balkrishna Industries plunged more than 10 percent in intraday trade on Monday, May 26, after the tyre manufacturer posted weak financial results for the March quarter of FY25 and faced a downgrade from Nomura. The Japanese brokerage house revised its rating from "buy" to "neutral" and sharply cut its target price, citing increased risks stemming from the company's foray into more competitive market segments. Balkrishna Industries Ltd reported a 25 percent year-on-year drop in standalone net profit for the quarter ended March 2025, with profits falling to ₹ 362 crore. This decline came despite a modest 5 percent increase in revenue, which stood at ₹ 2,838 crore, as per the company's investor presentation. The drop in earnings was attributed to rising input, finance, and employee costs, which offset the revenue growth. EBITDA for the quarter rose just 1 percent YoY to ₹ 703 crore, but margins contracted 115 basis points to 24.78 percent due to elevated raw material costs. For the full financial year 2024-25, the company reported an over 13 percent increase in net profit to ₹ 1,628 crore, up from ₹ 1,438 crore in FY24. Annual revenue rose nearly 13 percent to ₹ 10,615 crore. FY25 EBITDA rose 16 percent to ₹ 2,682 crore, with a margin of 25.26 percent—up 50 basis points over the previous year. The board announced a final dividend of ₹ 4 per share for FY25. Looking ahead, Balkrishna Industries plans to expand its total tyre manufacturing capacity to 4.25 lakh tonnes per annum, following the completion of its ongoing capital expenditure and de-bottlenecking efforts. A new off-road tyre project at Bhuj with a production capacity of 35,000 tonnes per year is expected to become operational by the end of FY26. The company's board has approved a capital expenditure of ₹ 3,500 crore over the next three years. This investment will fund additional production facilities at Bhuj, including units for carbon black, power generation, commercial vehicle tyres, rubber tracks, and passenger car radial tyres. The market reaction to the Q4 results and guidance was swift and negative. Shares of Balkrishna Industries fell as much as 10.3 percent to a low of ₹ 2,385 on the BSE, pulling the stock more than 29 percent below its 52-week high of ₹ 3,377.95, touched in June 2024. In contrast, the stock had hit a 52-week low of ₹ 2,157.20 as recently as April 2025. Over the past year, the stock has declined nearly 13 percent. In the month of May alone, it has lost over 10 percent, reversing the nearly 5 percent gain seen in April. This follows a consistent downtrend earlier in the year: the stock slipped 2.3 percent in March, 5.6 percent in February, and 4.7 percent in January. Nomura's downgrade to 'neutral' from 'buy' came alongside a downward revision in its target price from ₹ 3,242 to ₹ 2,644—a level close to last Friday's closing price. The brokerage flagged concerns around Balkrishna's strategy to diversify beyond its traditional off-highway tyre (OHT) focus into the highly competitive truck and passenger car radial (TBR/PCR) segments. According to Nomura, these new segments are already dominated by entrenched domestic players, presenting significant entry barriers. The firm warned that Balkrishna may need to make considerable upfront investments to build distribution networks and enhance brand recall in these segments, which could strain profitability. Nomura's analysis suggests that this expansion could reduce the company's blended EBITDA margins to 22–23 percent, from the earlier average of 26 percent. It also projected a possible 200 basis point decline in Return on Equity (RoE), depending on how the product mix evolves. Despite these concerns, Nomura kept its FY26 and FY27 earnings estimates broadly unchanged but revised its valuation outlook downward. It now expects the company to trade at a lower multiple range of 12x–16x earnings, compared to the earlier 14x–18x, reflecting the anticipated return dilution from entry into lower-margin markets. Nomura highlighted several risks to the company's future performance, including a slower-than-expected recovery in the off-highway tyre market, any sharp increase in commodity prices that could pressure margins, and the inability to pass on costs in a more competitive environment. Within the tyre sector, the brokerage currently prefers Ceat over Balkrishna Industries, citing a more favorable competitive positioning and risk-reward profile. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Time of India
12-05-2025
- Business
- Time of India
Stock Radar: Balkrishna Industries seeing signs of rebound; likely to retest 3000 levels – time to buy?
Balkrishna Industries has rebounded from Rs 2,100 levels, reclaiming key moving averages and showing a bullish breakout from a falling wedge pattern. Experts suggest the stock may rise to Rs 2,960–3,020 in 1–2 months, with support from technical indicators like RSI, MACD, and Supertrend. A breakout above the 200-DMA could further fuel upside momentum. Balkrishna Industries Ltd, part of the tyre and rubber products industry, bounced back strongly after testing the Rs 2,100 level in April 2025, helping the stock reclaim key moving averages on the daily traders with a high-risk appetite can consider buying the stock for a potential target of Rs 2,960–3,020 over the next 1–2 months, suggest stock had hit a high of Rs 3,377 on June 27, 2024, but failed to sustain the
