Balkrishna Industries Q3 Results Review - Near Term Hiccups, Long Term Positive: Dolat Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Balkrishna Industries Ltd.'s displayed an improved performance sequentially. Revenue grew 2.4 % QoQ to Rs 22.79 billion led by 3.1% QoQ volume growth. Ebitda grew 4% QoQ with expansion in operating margin (plus 35 basis points QoQ) at 23.6% led by better mix and benefit of operating leverage.Management expects Q4 volume to be flat and margin to be under pressure due to increase in freight rate led by ongoing red sea issue. Company is trying to pass on the increase in freight rate to the customer.Despite near term hiccups, we maintain a positive view on stock led by improving demand in Europe/U.S, strong growth trajectory in domestic market and faster clearance of channel inventory due to production cut is expected by European peers due to supply chain issue.We expect lower cost advantage and strong backward integration would help Balkrishna Industries to increase wallet share in Agri and Off the Road. We forecast 25% earning per share compound annual growth rate over FY24-26E and recommend to Accumulate with target price Rs 2880(28 times FY26E earning per share)..Click on the attachment to read the full report:.Macrotech Developers, Yes Bank, APL Apollo Tubes Q3 Results Today — Earnings Estimates.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Balkrishna Industries Q3 Results Review - Near Term Hiccups, Long Term Positive: Dolat Capital

Company expects a flat volume growth in Q4 due to geopolitical concerns in the Red sea.

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