Balkrishna Industries has surged 7% to Rs 772 on the BSE, its record high, in otherwise subdued market.
Shares of auto tyres and rubber products maker has gained 34% in past one month after reporting a strong 82% year-on-year (yoy) growth in net profit of Rs 154 crore for the quarter ended March, 2014 on back of higher volume.
In addition, the net sales of the company grew 33% to Rs 1,031 crore on yoy basis. EBITDA (earnings before interest tax depreciation and amortization) expanded by 450bps yoy to 25.8%.
The stock has rallied 127% so far in the current calendar year 2014 as against 19% rise in the benchmark S&P BSE Sensex.
Meanwhile, the management sounded positive on the demand outlook for both, agricultural as well as industrial segment (construction and mining), across geographies.
Management indicated refinancing of $100m ECB at LIBOR + 20bps, whereas the $175 million ECB has been refinanced at a lower rate at 2.1?2.2% as against 3% earlier. The above would lead to a savings in the interest cost to the tune of Rs10-12 crore per year, Surjit Arora analyst at PrabhudasLilladher said in a report.
Shares of auto tyres and rubber products maker has gained 34% in past one month after reporting a strong 82% year-on-year (yoy) growth in net profit of Rs 154 crore for the quarter ended March, 2014 on back of higher volume.
In addition, the net sales of the company grew 33% to Rs 1,031 crore on yoy basis. EBITDA (earnings before interest tax depreciation and amortization) expanded by 450bps yoy to 25.8%.
The stock has rallied 127% so far in the current calendar year 2014 as against 19% rise in the benchmark S&P BSE Sensex.
Meanwhile, the management sounded positive on the demand outlook for both, agricultural as well as industrial segment (construction and mining), across geographies.
Management indicated refinancing of $100m ECB at LIBOR + 20bps, whereas the $175 million ECB has been refinanced at a lower rate at 2.1?2.2% as against 3% earlier. The above would lead to a savings in the interest cost to the tune of Rs10-12 crore per year, Surjit Arora analyst at PrabhudasLilladher said in a report.
