About the Company:
Balkrishna Industries Ltd operates mainly in the business segment of tires. The company focuses on the production of a range of off-highway tires that includes agricultural, industry, material handling, forestry, lawn and garden, construction and earthmoving tires. In the domestic market, the company supplies to all the major construction equipment manufacturers and has a presence in the replacement market of the road construction sector.
QoQ & YoY Performance:
India’s leading highway tyre maker has declared the results for the third quarter of the fiscal year ending March 2020.
- QoQ Performance: Consolidated Net sales/ revenue of the company stood at Rs. 11,557 crores, went up by 7% in December quarter 2019. Total expenditure (excluding interest and depreciation expenses) is Rs. 8,096 crores was marginally down by 0.20%. EBITDA numbers rose by 6.50%.
- YoY Performance: The Company has reported marginally down by 3.51% in sales/revenue while expenditure (excluding interest and depreciation expenses) of the company tumbled to 9.27%. EBITDA numbers climbed to 22.26%.
- Profitability of the company: Net profit of the company came slipped to 24% to Rs 2,238 crore in the quarter ended December 2019 as against Rs 2,943 crore during the previous quarter.
As per Lokesh Sethia, SEBI Registered Research Analyst, the stock is trading at Rs. 1,273.00 per share, up by 10%. The company has posted disappointing quarterly numbers compared to yearly numbers. However, the company remained in zero long term debt zone. However, the company has managed to declare its 3rd interim dividend of 16.00 per Equity Share (800%) on the Equity Shares of 2/- each (face value) for the financial year 2019-2020. Hence, we recommend it to ‘BUY’ for the target of Rs. 1,526 per share for a long-term horizon.
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