Shares of Balkrishna Industries jumped over 9 per cent in intraday trade to hit a record high of Rs 1,481 on the Bombay Stock Exchange on Monday amid surge in buying on hopes of robust demand and margin outlook. The stock breached its previous high of Rs 1,467.80 touched on August 29, 2018. The shares of Mumbai-based tyre manufacturer have rallied 118 per cent between April to September this year against its 52-week low of Rs 677.60 touched on March 23, 2020.
On Monday, Balkrishna Industries shares opened higher at Rs 1,368 against previous closing price of Rs 1,356.60 and gained as much as 9.21 per cent to hit a record high of Rs 1,482. Paring some of early gains, the stock closed day's trade at Rs 1,443.75, up 6.42 per cent. Meanwhile, the S&P BSE Sensex ended Monday's trade at 37,981, up 592 points, or 1.59 per cent.
Among others, shares of MRF, JK Tyre, Apollo Tyres and Ceat rose between 3 per cent to 7 per cent on the BSE.
Investors have turned bullish on tyre stocks following recent export data of the industry which continue to remain strong with both segments - agri and off-the-road (OTR) tyres - resuming growth trajectory together for the first time since December 2019. In the month of August, agri tyres grew by 42 per cent year on year (YoY) and off-the-road (OTR) tyres by 13 per cent YoY.
The upcoming festive season and continued revival in economic activities further added optimism to industry outlook.
Balkrishna Industries, which manufactures off-highway tyres used in specialist segments like mining, earthmoving, agriculture and gardening, had reported consolidated net profit of Rs 131.56 crore in April-June quarter of the current fiscal against Rs 176.84 crore in the year-ago period, registering a year-on-year decline of 25.61 per cent. The company, which has five factories located in Aurangabad, Bhiwadi, Chopanki, Dombivali and Bhu, reported consolidated net revenue of Rs 942.61 crore, down 21.38 per cent on from Rs 1,198.93 crore in Q1 FY20. The company's board had declared first interim dividend of Rs 3 per equity share (150 per cent) for the financial year 2020-2021.
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