Balkrishna Industries Share Price Tumbles 10% After Q4 Margin Contracts

Balkrishna Industries Ltd. shares declined sharply by over 10% following the release of its fourth quarter results, which fell short of market expectations.

The company's standalone revenue for the fourth quarter increased by 2.8% year-over-year to Rs 2,746.6 crore, slightly above Bloomberg's estimate of Rs 2,716.5 crore.

Earnings before interest, taxes, depreciation, and amortisation fell by 9.6% to Rs 602 crore, missing Bloomberg's estimate of Rs 691 crore. The Ebitda margin also contracted to 21.9% from 24.9% in the previous year, well below the estimated 25.4%.

Balkrishna Industries' net profit dropped by 24.7% to Rs 362 crore, compared to Rs 481 crore in Q4 FY24. This figure was also below Bloomberg's estimate of Rs 448.5 crore.

The scrip fell as much as 10.42% to Rs 2,383 apiece. It pared losses to trade 8.09% lower at Rs 2,445 apiece, as of 10:25 a.m. This compares to a 0.65% advance in the NSE Nifty 50 Index.

It has fallen 21.18% in the last 12 months. Total traded volume so far in the day stood at 28 times its 30-day average. The relative strength index was at 33.

Out of 22 analysts tracking the company, six maintain a 'buy' rating, six recommend a 'hold' and 10 suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an downside of 2.1%.