Tyremaker Balkrishna Industries Ltd. said it has finished building a mould unit at its plant in Bhuj, Gujarat, with a capex of Rs 300 crore.
The company's performance for the quarter-ended June beat estimates, led by higher volume. Its operating margin was 26.3% owing to lower raw material and other costs, even as freight expenses rose.
The tyre manufacturer posted an 87.4% increase in net profit to Rs 486.8 crore during the three months ended March, as compared to Rs 260 crore in the year-ago period. During the same period, revenue growth was at Rs 2,682 crore, up 16% as compared to Rs 2,317 crore over the same period last year.
Shares of Balkrishna Industries closed 0.89% higher at Rs 3,150.75 apiece, as compared with a 0.35% advance in the S&P BSE Sensex.
It has risen 30.45% in the last 12 months and gained 48.31% on a year-to-date basis.
Ten out of the 25 analysts tracking the company have a 'buy' rating on the stock, nine suggest a 'sell', and six recommend 'hold', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 30.4%.
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