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Balkrishna Industries Q4FY17: Fundamental Analysis - Firstcall India Equity - IndiaNotes.com
Balkrishna Industries Q4FY17: Fundamental Analysis - Firstcall India Equity
Firstcall India Equity | Published: 05 Jun, 2017  | Source : IndiaNotes.com

SYNOPSIS

  • Balkrishna Industries Ltd is a leading manufacturer in the Off-Highway tire market.
  • Revenue for the quarter increased by 15.23% at Rs. 10029.40 mn from Rs. 8703.90 mn, when compared with the prior year period.
  • During the quarter, EBIDTA is Rs. 3170.90 mn as against Rs. 2888.70 mn in the corresponding period of the previous year, up by 9.77%.
  • During Q4 FY17, net profit increased by 1.79% to Rs. 1374.70 mn from Rs. 1350.50 mn in the corresponding quarter of previous year.
  • During Q3 FY17, Profit before tax stood at Rs. 2367.40 mn as compared to Rs. 2105.90 mn in Q4 FY16, up by 12.42%.
  • EPS of the company stood at Rs. 14.22 during the quarter, as against Rs. 13.97 per share over previous year period.
  • Balkrishna Industries Ltd has recommend payment of Final Dividend of Rs. 2.50 per Equity Share (125%) on the Equity Shares of Rs. 2/- each (face value) for the year ended March 31, 2017.
  • During FY2016-17, Revenue rose by 16% to Rs. 37883.00 mn from Rs. 32725.20 mn in FY2015-16.
  • During FY2016-l7, PAT rose by 63% at Rs. 7151.40 mn from Rs. 4385.70 mn in FY2015-16.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 14% and 29% over 2016 to 2019E, respectively.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs. 1560.85, the stock P/E ratio is at 18.13 x FY18E and 15.98 x FY19E respectively.
  • Earning per share (EPS) of the company for the earnings for FY18E and FY19E is seen at Rs. 86.07 and Rs. 97.69 respectively.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 14% and 29% over 2016 to 2019E respectively.
  • On the basis of EV/EBITDA, the stock trades at 8.95 x for FY18E and 7.85 x for FY19E.
  • Price to Book Value of the stock is expected to be at 3.49 x and 3.01 x for FY18E and FY19E respectively.
  • Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.

 

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About Firstcall India Equity

Firstcall India Equity of Firstcall India Equity Advisors Pvt. Limited (FIEA), is a leading financial services provider in India and a SEBI Registered Category-I Merchant Banker. FIEA is a culmination of a credible Equity Research Capabilities, Long Standing Relationship with leading FIIs, DFIs, MFs, Overseas Pension Funds etc. The company’s research caters to the needs of the largest news wire and media houses of the world namely Reuters, Thomson, Capital IQ, Themarkets.com, Emerging Markets Euro money Publications-UK. The Company is among the major players in the Debt and Equity markets.


For more information please write in to editor@indianotes.com

 

Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.

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