Competition, demand worries ahead for Balkrishna Industries' stock

The stock of off highway tyre (OHT) maker, Balkrishna Industries (BIL), slipped over 6 per cent to ₹ 2,492 a share on Monday amid concerns that its diversification into other tyre categories will weigh on its margins. The move also comes amid uncertain global demand conditions for its core OHT category.

 

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

 

BIL will be entering the premium passenger vehicle (PV) and commercial vehicle or CV (bus and truck radials) radial tyres in India. The focus would be the domestic replacement