Balkrishna Industries Limited (BKT) is a market leader in the manufacturing of ‘off-highway’ tires. They also focus on segments such as construction, agricultural and gardening equipment, industrial vehicles and mining.
The market capitalisation of Balkrishna Industries Limited as of August 7, 2018, was a little over Rs.23,488.04
Company’s Wealth and Recent Performance
- For the financial year ending March 31, 2018, the ‘off-highway’ tire segment saw a growth rate of around 4% to 5%.
- For the fourth quarter of 2017 – 2018 (October to December), there was a 25% year-on-year increase in revenue. This growth was driven by the increase in volume (17%) and the realisation swell (7%).
- For the financial year ending March 31, 2018, the revenue earned from operations stood at Rs.4,464.46 crore as against the previous financial year’s Rs.3,784.66 crore.
- The Earnings before Interest, Depreciation, and Tax (EBITDA) went up, standing at Rs.1,442.89 crore when compared to the previous year’s Rs.1,381.54 crore.
- For the year ending March 31, 2018, the net profit went up, standing at Rs.739.25 crore. Overall, around 80% of the revenue was generated from exports.
- For the year 2017-2018, the interim dividend that has been paid is of 325%, which is Rs.6.50 per equity share. The final dividend was of 75%, which is Rs.1.50% per equity share.
- As of March 31, 2017, the company raised a share capital of Rs.19.33 crore
Balkrishna Industries Stock Trends in 2018
- On January 1, 2018, the markets on the National Stock Exchange (NSE) opened at the price of Rs.1,195 per share. By the 5th, the price rose to reach Rs.1,206.89. As the week progressed, the stock rate dwindled and on the 29th, the price per share was Rs.1,128.
- On February 1, the stock price was Rs.1,142 but after the board meeting, the stocks touched a new high, reaching up to Rs.1,115.40 on the 14th, going up again to Rs.1,183 on the 15th. However, the stock could not withstand gains and the prices saw a downward trend during the latter half of the month.
- March remained a slow month with not many fluctuations. On the 1st, the price opened at Rs.1,081.10 and the month closed at Rs.1,095.15.
- There was a lot of improvement in April as prices peaked at Rs.1,225 on the 9th as equity indices gained at the markets. On the 17th, the rate of the stock plummeted at Rs.1,325 with a fresh 52-week high despite a cautious market sentiment.
- By the end of May, the prices had fallen, reaching Rs.1,102.75 on the 29th. This price trend was influenced by rising US bond yields and other unfavourable factors.
- On June 1, 2018, the markets opened at Rs.1,132 with price trends falling downwards over the next few weeks. On the 28th, the price per share was recorded at Rs.1,060.90.
- Prices picked in July yet again, after the final dividend was declared, reaching Rs.1,243.10 on the 12th. This was the time when the price of most tyre stocks rose as crude prices fell. By the 20th, the rate went down to Rs.1,150 and the month closed at Rs.1,197.
- On August 1, the stock price was recorded at Rs.1,214.90 and by the 3rd, the price went up to Rs.1,240.
Balkrishna Industries Stock Trends in 2016 and 2017
- On January 2, 2017, the stock price was noted to be Rs.554.97 and by the 16th, the price went down to Rs.544.75. With a spurt in volume by the 19th, the rate went up to Rs.589.79.
- During the month of February 2017, the stock prices remained relatively steady. On the 13th, the cost per share peaked at Rs.620. By 28th, the cost per share reached Rs.639.
- On March 21, 2017, the price of a Balkrishna stock was Rs.724.94, There were very minor ups and downs through the next few days. On the 30th, the price was Rs.724.98.
- On April 3, 2017, the price per share was recorded at Rs.690 and by the 27th, the cost of the scrip peaked at Rs.779.99.
- In 2017, throughout May, the scrip price hovered at around a little over Rs.700 and the month closed at the rate of Rs.739.64.
- On July 3, 2017, the scrip rate was Rs.826 and by the 6th, the cost per share climbed up to Rs.862.63.
- As the market scenario changed, the price per share went down to Rs.737 on the 22nd of August in 2017. In the next month, the price went up, reaching Rs.840 on the 18th of September.
- Influenced by a fresh 52-week high, the price of a share reached Rs.919 on November 7, 2017. By December, the prices increased exponentially, standing at Rs.1,247.45 on the 20th.
- On January 1, 2016, the price of a Balkrishna Industries Limited share was Rs.324.45. The prices remained steady and grew over the course of the next few weeks.
- In February 2016, the prices hit rock bottom on the 24th, reaching Rs.283.42 but prices picked up in March and April. By the May 4, the price per scrip was Rs.334.
- With no major price variation in the next few months, the cost per share peaked at Rs.573.27 on October 10, 2016. In December, the price again went on to reach Rs.616.99 on the 7th.
Should you invest in Balkrishna Industries?
- Balkrishna Industries Limited has gone on to establish itself as one of ‘India’s largest Off-Highway Tire Manufacturer’.
- In the recent years, the company has enjoyed a good business environment due to the revival in the commodity cycle. In this light, the prospects look rather promising for the company in the long-run.
- The company is exploring all possibilities and new roads in order to grow at a fast pace by penetrating deeper in existing domestic and international markets. They are also looking to expand their product range and extend their ties with Original Equipment Manufacturers (OEMs).
- One of the core strengths of the company is a strong Research and Development (R&D) background in technical product development.
- The off-highway tires that they manufacture meet international standards and regulations.
- Balkrishna Industries has also received an ISO 9001: 2000 certification for an efficient ‘Quality Management System’ and an ISO 14001:2004 for having in place a robust ‘Environmental Management System’.
Balkrishna Industries Limited, which was founded in 1987, is headquartered in Mumbai, India. It is an industry leader in the ‘off-highway tire’ market and also focuses on a number of other speciality segments. Today, it has an international presence and a sales volume that is around 850 million US dollars. The company has as many as 4 subsidiaries in North America and Europe. With a strong distributor network, the company sells its products in as many as 130 countries. Apart from this, they are also equipped with state-of-the-art production units in India.
History of the Company
The foundation for Balkrishna Industries Limited was laid in 1987 when the first plant was set up in Aurangabad. In the year 1995, the company began the producing off-highway tires. In 2002, a plant was set up in Bhiwadi. The following year, the company began the production of ATV, gardening and earthmoving tires. In 2004, the company introduced radical Agrimax tires and set up a plant in Dombivali for the production of tire moulds. The next year, a plant started operating out of Chopanki. In 2009, the company reached a milestone, crossing the Rs.1,000 crore turnover mark.
Management of the Company
Mr.Arvind Poddar – Chairman and Managing Director
Arvind Poddar holds a stake of 57% in the company and he became a part of the off-highway sector in the mid-1990. He has a strong background in the textile industry that dates back to 1951.
Mr. Rajiv Poddar – Joint Managing Director
Rajiv Poddar has a bachelor’s degree from Kingston University and has trained across all verticals in the company. He also serves as one of the Board of Directors.
Mr.Dilip Vaidya – Technical Head
Dilip Vaidya currently holds the position of the technical head at Balkrishna Industries Limited. He has previously served as the assistant divisional manager at Bombay Tyres International Limited.
Mr. Basantkumar Bansal - Head of Finance
Bansal heads the finance department at the company. Previously, he served as the Chief Financial Officer of Rama Group. He has a B.Com and an ACA degree.
Balkrishna Industries Listings in NSE, BSE, and Indices
Balkrishna Industries equity shares are available for trading on the National Stock Exchange of India Limited and the Bombay Stock Exchange. The respective codes for the same have been mentioned below.
- NSE Code: BALKRISINDEQ
- BSE Code: 502355
- ISIN: INE787D01026
- Sector: Tyres
Coming to the stock market indices, the company comprises the following:
- Nifty 200
- Nifty 500
- Nifty Alpha 50
- Nifty Full Midcap 100
- Nifty LargeMidcap 250
- Nifty Midcap 100
- Nifty Midcap 150
- Nifty Midcap 50
- Nifty MidSmallcap 400
- S&P BSE 150 MidCap Index
- S&P BSE 200
- S&P BSE 250 LargeMidCap Index
- S&P BSE 400 MidSmallCap Index
- S&P BSE 500
- S&P BSE AllCap
- S&P BSE Auto
- S&P BSE Consumer Discretionary Goods & Services
- S&P BSE MidSmallCap
- S&P BSE SmallCap
- S&P BSE SmallCap Select Index
B-66, Waluj MIDC, Waluj Industrial Area, Aurangabad 431 136 (Maharashtra)
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