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
The management commentary suggests Q2FY23 to be weak (QoQ decline) due to sluggish demand prospects in Europe and US.
Stocks to Watch: With oil prices staging a dramatic reversal, related stocks, along with rate-sensitive sectors will be on the radar as RBI announces its monetary policy outcome Friday.
According to the technical analyst from Anand Rathi, Balkrishna Industries is showing immense strength on the 2-hour chart, while the weekly chart of HDFC Life indicates a sharp up move.
The company announced commencement of commercial production from its brownfield expansion & debottlenecking project at the Bhuj plant.
Balkrishna Industries: Volume constraints and valuations are the other concerns