Growth prospects help Balkrishna edge past peers

Good global demand, improving margins doubled stock price in 1 year

The Balkrishna Industries’ stock has more than doubled in the past year. At present, the company is the country’s second-largest tyre maker by market capitalisation. It manufactures off-highway tyres (OHT) used in sectors such as agriculture (tractors), construction (loaders and dumpers) and off-road applications, including mining. Falling natural rubber prices, expectations of a strong double-digit volume growth and improvement in margins over FY17-20 are key reasons why the Street is bullish on the stock of this niche tyre firm.

The management, too, has increased its volume forecast for FY18 by three per cent, which translates into a 10-13 per cent