Balkrishna Industries share price rose in early trade today after global brokerage Nomura upgraded the off highway tyre maker to buy with a target price of Rs 1,148. Balkrishna Industries stock gained up to 2.84% to Rs 991.50 compared to the previous close of Rs 964.15 on BSE.
Share price of Balkrishna Industries has gained after five consecutive days of fall. The mid cap stock has gained 10% during last one year.
Nomura said demand outlook for the firm was improving and volume recovery for its business was visible. Benign commodity prices are likely to help margins of the firm, it added. Nomura raised earnings per share estimate for the firm by 5%/14%/12% over FY20-22.
The firm posted a 40 per cent year-on-year rise in net profit for the quarter ended September 30. It reported a consolidated net profit of Rs 294.31 crore during the quarter under review against Rs 210.30 crore in the same period last year. However, revenue of the company declined 17 per cent YoY to Rs 1084.28 crore in Q2FY20.
The board also declared second interim dividend of Rs 2 per share.
Mumbai-based Balkrishna Industries is engaged in offering pneumatic tires. The company offers tires, tubes and tire flaps. It focuses on manufacture of a range of off-highway tires (OHT). These tires are mainly meant for agricultural, industrial and construction, earthmover and port, mining, forestry, lawn and garden and all-terrain vehicles (ATV).
Its products include AGRIMAX RT 855, PL 801, EARTHMAX SR 41, EM 934, AGRIMAX TERIS and EARTHMAX SR 30, among others.
By Aseem Thapliyal