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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 502355 | NSE: BALKRISIND

Fundamental Analysis of Balkrishna Industries Ltd

Basic Stock Data

Last Updated: April 4, 2024, 5:03 pm

Market Cap 45,352 Cr.
Current Price 2,346
High / Low2,796/1,952
Stock P/E36.5
Book Value 425
Dividend Yield0.69 %
ROCE13.8 %
ROE13.8 %
Face Value 2.00
PEG Ratio6.84

Competitors of Balkrishna Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Apollo Tyres Ltd 29,824 Cr. 470560/31816.5 2040.84 %10.2 %8.77 % 1.00
JK Tyre & Industries Ltd 10,845 Cr. 416554/18013.5 1720.48 %19.2 %20.4 % 2.00
TVS Srichakra Ltd 3,231 Cr. 4,2185,097/2,75528.2 1,4520.77 %10.9 %10.7 % 10.0
MRF Ltd 55,561 Cr. 1,31,0401,51,445/94,00626.7 39,3840.13 %16.9 %13.2 % 10.0
Innovative Tyres & Tubes Ltd 12.3 Cr. 6.8510.2/2.10 0.040.00 %306 %% 10.0
Industry Average19,894.66 Cr27,230.1716.988,242.410.44%72.64%10.61%6.60

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,5091,7531,8032,0722,0462,3742,6192,6582,1662,3172,1592,2532,274
Expenses1,0301,2031,2921,5341,5891,8712,1752,2311,8961,8371,6581,7201,734
Operating Profit480550511538457503444426269480501533541
OPM %32%31%28%26%22%21%17%16%12%21%23%24%24%
Other Income556182133113109106227455710610766
Interest232223351426222436
Depreciation105106107111118120129137149156155160161
Profit before tax428503484558450490417511151355430456409
Tax %24%24%32%30%25%24%26%25%28%27%23%24%25%
Net Profit325380331391339375307382108260332347305
EPS in Rs16.8219.6517.1020.2317.5319.3915.8819.775.6113.4417.1717.9715.80

Last Updated: May 7, 2024, 11:24 pm

Quarterly Chart

Balkrishna Industries Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales3,0143,3903,7683,8133,2373,7234,4445,2104,8115,7838,2959,7608,895
Expenses2,5022,7212,8783,0862,3712,5923,3413,9043,5373,9726,2868,0477,112
Operating Profit5126698907278661,1311,1031,3061,2741,8112,0091,7121,783
OPM %17%20%24%19%27%30%25%25%26%31%24%18%20%
Other Income4514277131254340215250171438342315
Interest2928274840221512111294886
Depreciation86112170244282304311333374416455571620
Profit before tax4005347067136741,0591,1161,1771,1401,5551,9821,4351,392
Tax %33%34%33%34%34%32%34%34%16%24%28%26%
Net Profit2693504754734467177367749601,1781,4351,0571,048
EPS in Rs13.9118.1024.5524.4523.0637.0838.0640.0249.6460.9174.2554.7054.19
Dividend Payout %5%4%4%5%12%11%21%20%40%28%38%29%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)30.11%35.71%-0.42%-5.71%60.76%2.65%5.16%24.03%22.71%21.82%-26.34%
Change in YoY Net Profit Growth (%)0.00%5.60%-36.14%-5.29%66.47%-58.11%2.51%18.87%-1.32%-0.89%-48.16%

Growth

Compounded Sales Growth
10 Years:10%
5 Years:12%
3 Years:17%
TTM:-4%
Compounded Profit Growth
10 Years:12%
5 Years:14%
3 Years:8%
TTM:47%
Stock Price CAGR
10 Years:27%
5 Years:30%
3 Years:12%
1 Year:23%
Return on Equity
10 Years:18%
5 Years:18%
3 Years:18%
Last Year:18%

Last Updated: April 4, 2024, 5:03 pm

Balkrishna Industries Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital19191919191939393939393939
Reserves1,0911,4241,8762,2572,7563,5244,0454,6154,9705,9616,8947,5188,186
Borrowings1,7092,1642,4392,3581,8981,3918678719321,0012,5293,3472,916
Other Liabilities3925446886857258559279548661,1661,5171,4441,434
Total Liabilities3,2124,1515,0215,3185,3985,7895,8786,4796,8068,16610,97912,34812,575
Fixed Assets8731,3352,3892,4152,8592,8492,8492,7863,3083,3704,0195,3845,730
CWIP4771,0135656342311101196005878561,2581,3921,318
Investments233704448361,3491,1031,0831,0621,4181,8972,0372,242
Other Assets1,8591,8001,6971,8251,4731,4811,8082,0101,8502,5233,8053,5353,285
Total Assets3,2124,1515,0215,3185,3985,7895,8786,4796,8068,16610,97912,34812,575

Reserves and Borrowings Chart

Balkrishna Industries Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 765496029841,0728477508201,1731,3399081,448
Cash from Investing Activity -688-1,011-1,230-435-552-563-92-636-678-1,173-1,897-1,783
Cash from Financing Activity 970370365-130-625-589-654-165-495-158980359
Net Cash Flow358-92-263419-105-30642018-923

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow511.00667.00888.00725.00865.000.00-866.00-870.00-931.000.000.00-2.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days595659564340393645484842
Inventory Days1008811476102110105113105148162124
Days Payable4453827488877058651038037
Cash Conversion Cycle115919158586475928493130129
Working Capital Days110949037-819767466708676
ROCE %20%17%18%17%15%20%22%22%17%24%24%14%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters58.30%58.30%58.29%58.29%58.29%58.30%58.30%58.30%58.30%58.30%58.30%58.30%
FIIs15.18%15.42%15.07%14.05%14.30%12.96%12.45%12.42%12.40%12.53%12.69%12.24%
DIIs14.09%12.56%11.59%11.78%11.17%18.81%20.12%20.21%20.90%21.11%21.32%21.97%
Government0.00%0.00%0.00%0.00%0.00%0.10%0.10%0.10%0.10%0.10%0.10%0.11%
Public12.44%13.73%15.05%15.87%16.24%9.84%9.03%8.99%8.30%7.94%7.59%7.38%
No. of Shareholders82,0721,04,5261,27,8161,39,9131,35,3951,73,8021,58,2011,46,8041,40,4901,36,2141,25,3411,34,831

Shareholding Pattern Chart

No. of Shareholders

Balkrishna Industries Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
HDFC Mid-Cap Opportunities Fund - Regular Plan48975992.421261.82
Parag Parikh Flexi Cap Fund41890742.231079.27
Kotak Flexicap Fund - Regular Plan26000001.62669.86
DSP Mid Cap Fund15584942.52401.53
Motilal Oswal Midcap Fund14500005.49373.58
Motilal Oswal Flexi Cap Fund14000004.2360.7
Kotak Emerging Equity Fund - Regular Plan12654260.89326.02
Axis Midcap Fund10447321.14269.16
Kotak Equity Opportunities Fund - Regular Plan7250001.13186.79
PGIM India Midcap Opportunities Fund5893831.55151.85

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)54.7074.2560.9149.6440.02
Diluted EPS (Rs.)54.7074.2560.9149.6440.02
Cash EPS (Rs.)84.2397.8182.4568.9757.23
Book Value[Excl.RevalReserv]/Share (Rs.)390.94358.67310.39259.09240.75
Book Value[Incl.RevalReserv]/Share (Rs.)390.94358.67310.39259.09240.75
Revenue From Operations / Share (Rs.)504.89429.13299.18248.90269.53
PBDIT / Share (Rs.)106.24126.57102.5778.7478.65
PBIT / Share (Rs.)76.71103.0281.0359.4161.44
PBT / Share (Rs.)74.23102.5480.4458.9560.87
Net Profit / Share (Rs.)54.7074.2660.9249.6540.02
NP After MI And SOA / Share (Rs.)54.7074.2660.9249.6540.02
PBDIT Margin (%)21.0429.4934.2831.6329.18
PBIT Margin (%)15.1924.0027.0823.8622.79
PBT Margin (%)14.7023.8926.8823.6822.58
Net Profit Margin (%)10.8317.3020.3619.9414.84
NP After MI And SOA Margin (%)10.8317.3020.3619.9414.84
Return on Networth / Equity (%)13.9920.7019.6219.1616.62
Return on Capital Employeed (%)16.4725.7125.0021.8823.63
Return On Assets (%)8.5613.0714.4114.0911.94
Long Term Debt / Equity (X)0.130.070.000.000.00
Total Debt / Equity (X)0.440.360.160.180.18
Asset Turnover Ratio (%)0.840.860.770.720.85
Current Ratio (X)1.171.201.311.231.70
Quick Ratio (X)0.670.680.810.831.18
Inventory Turnover Ratio (X)2.943.073.123.023.67
Dividend Payout Ratio (NP) (%)29.2539.0519.7044.3118.74
Dividend Payout Ratio (CP) (%)18.9929.6514.5531.8913.10
Earning Retention Ratio (%)70.7560.9580.3055.6981.26
Cash Earning Retention Ratio (%)81.0170.3585.4568.1186.90
Interest Coverage Ratio (X)42.75267.40174.22171.01136.59
Interest Coverage Ratio (Post Tax) (X)23.01157.87104.47108.8370.51
Enterprise Value (Cr.)40991.7843811.1033598.8216153.4320029.89
EV / Net Operating Revenue (X)4.205.285.813.363.84
EV / EBITDA (X)19.9617.9116.9510.6113.17
MarketCap / Net Operating Revenue (X)3.874.985.653.183.69
Retention Ratios (%)70.7460.9480.2955.6881.25
Price / BV (X)4.995.965.453.054.13
Price / Net Operating Revenue (X)3.874.985.653.183.69
EarningsYield0.020.030.030.060.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹2,155.50

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Overvalued: 8.12% compared to the current price ₹2346

Intrinsic Value: ₹2,270.55

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 3.22% compared to the current price ₹2346

Last 5 Year EPS CAGR: 5.34%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 19.17%, which is a positive sign.
  2. The company has higher reserves (4,239.77 cr) compared to borrowings (1,878.62 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (4.77 cr) and profit (233.46 cr) over the years.
  1. The stock has a high average Working Capital Days of 65.83, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 90.00, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Balkrishna Industries Ltd:
    1. Net Profit Margin: 10.83%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 16.47% (Industry Average ROCE: 66.57%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 13.99% (Industry Average ROE: 4.36%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 23.01
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.67
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 36.5 (Industry average Stock P/E: 15.22)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✓ Total Debt / Equity: 0.44
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating: ★★★︎☆☆

About the Company

Balkrishna Industries Ltd. is a Public Limited Listed company incorporated on 20/11/1961 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L99999MH1961PLC012185 and registration number is 012185. Currently Company is involved in the business activities of Manufacture of refined petroleum products. Company’s Total Operating Revenue is Rs. 8266.71 Cr. and Equity Capital is Rs. 38.66 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Tyres & TubesB-66, Waluj MIDC, Waluj Industrial Area, Aurangabad Maharashtra 431136shares@bkt-tires.com
http://www.bkt-tires.com
Management
NamePosition Held
Mr. Arvind PoddarChairman & Managing Director
Mr. Rajiv PoddarJoint Managing Director
Mr. Vipul ShahWhole Time Director & Co. Secretary
Mrs. Vijaylaxmi PoddarNon Exe.Non Ind.Director
Mr. Sandeep JunnarkarNon Exe. & Ind. Director
Mr. Pannkaj GhadialiNon Exe. & Ind. Director
Mr. Rajendra HingwalaNon Exe. & Ind. Director
Ms. Shruti ShahNon Exe. & Ind. Director

FAQ

What is the latest fair value of Balkrishna Industries Ltd?

The latest fair value of Balkrishna Industries Ltd is ₹2155.50.

What is the Market Cap of Balkrishna Industries Ltd?

The Market Cap of Balkrishna Industries Ltd is 45,352 Cr..

What is the current Stock Price of Balkrishna Industries Ltd as on 06 April 2024?

The current stock price of Balkrishna Industries Ltd as on 06 April 2024 is 2,346.

What is the High / Low of Balkrishna Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Balkrishna Industries Ltd stocks is ₹2,796/1,952.

What is the Stock P/E of Balkrishna Industries Ltd?

The Stock P/E of Balkrishna Industries Ltd is 36.5.

What is the Book Value of Balkrishna Industries Ltd?

The Book Value of Balkrishna Industries Ltd is 425.

What is the Dividend Yield of Balkrishna Industries Ltd?

The Dividend Yield of Balkrishna Industries Ltd is 0.69 %.

What is the ROCE of Balkrishna Industries Ltd?

The ROCE of Balkrishna Industries Ltd is 13.8 %.

What is the ROE of Balkrishna Industries Ltd?

The ROE of Balkrishna Industries Ltd is 13.8 %.

What is the Face Value of Balkrishna Industries Ltd?

The Face Value of Balkrishna Industries Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Balkrishna Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE