Balkrishna Industries

Balkrishna Industries stock traded at its highest point in October after the company inked an agreement with Pirelli to produce 800,000 branded premium car tyres in India.

Strong volume growth in Europe and India is expected to support Balkrishna Industries, while calibrated price increases could help margins recover gradually

Apollo Tyres, CEAT, Balkrishna Industries share prices could fall up to 24% from current levels, cautions technical analysts Kunal Shah of Mirae Asset Sharekhan.

JM Financial initiated coverage with a 'buy' rating on Balkrishna Industries and a target price of ₹2,540, an upside potential of about 15.5 per cent from Thursday's close

Balkrishna Industries earmarks Rs 3,500 crore to enter India's consumer tyre market, targeting a 2.2x rise in revenue by FY30 under its Vision 2030 strategy.

For vendors like BHFC, RMKF, BIL and SAMIL, analysts believe subdued global CV, CE and tractor demand poses headwinds, though order wins and diversified portfolios may cushion the impact.

Tyre stocks outlook: After a weak performance in FY25 - largely due to a sharp rise in input costs; analysts expect margins to gradually revive, aided by softening costs and focus on premiumization.

The foray into new categories, which are highly competitive, has prompted brokerages to cut their earnings and downgrade the stock

Balkrishna Industries share price: Balkrishna Industries' reported standalone net sales for the quarter were up 2.8 per cent year-on-year (Y-o-Y), at ₹2,747 crore

The Nifty Auto index, which tracks the performance of auto stocks, dropped 1.46 per cent, to hit an intraday low of 21,095 points.

The fall in auto stocks came after the US President Donald Trump, on Wednesday, announced that he would impose a 25% tariff on all cars imported into the US that are not manufactured domestically

Balkrishna's current valuation at 14 times FY27 enterprise value to operating profit is attractive given a strong return on invested capital of 25 per cent in FY26

Despite multiple headwinds, brokerages believe the company is well-positioned to benefit from a revival in demand going forward

Technical charts suggests that Ramkrishna Forgings, Balkrishna Industries and KIMS can potentially rally up to 16 per cent from present levels; check key support, resistance levels here

Balkrishna Industries, a leading off-highway tyre manufacturer, announced a 47.6 per cent increase in net profit for the first quarter ending June 30, 2024

Exports and market share gains have helped the company to pull ahead

So far in the current calendar year 2023, MRF has outperformed the market by gaining 14% on improved financial performance. In comparison, the S&P BSE Sensex gained 3% during the period

Tyre-maker's challenges include excess inventory, muted demand in agriculture sector

Its revenue from operations increased marginally by around 6 per cent to Rs 2,165.57 crore in Q3

Company's near term will be tough, but brokerages believe it will continue to gain market share