Balkrishna Industries poised for more gains

Maker of specialised tyres expected to profit from higher sales volumes

The tyre stocks’ rally does not look like it would end anytime soon. Falling Chinese imports, weak rubber prices, regulatory action on imports, and steady demand have fuelled the rally. One company that will be a major beneficiary of falling rubber prices is Balkrishna Industries. The company makes off-highway tyres, or OHT, for specialised segments, such as mining, agriculture, construction and all-terrain applications. It is expected to gain from higher demand, increasing market share and rising operating profit margins.

Analysts believe the slump in OHT market (growth fell each year between the calender year 2011 and 2016) has bottomed out