Balkrishna Industries Q4 Results Review: Motilal Oswal Maintains 'Neutral' Stance, Cuts Target Price

Balkrishna Industries’ Q4 FY25 operational performance was in line, although PAT was below our estimate primarily due to a forex loss. Ebitda at Rs 7 billion was in line with estimates..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. .Motilal Oswal Report.Balkrishna Industries Ltd. continues to face demand headwinds in its key global markets. Hence, we cut our earnings estimates by 8% each for FY26/FY27. Further, its foray into the provision coverage ratio/truck-bus radial segments is likely to be critically monitored from here on for: whether or not it is able to gain material traction in these segments and would margins and returns be materially dilutive in the long run..While the stock has not done well in the recent past and its valuations at 27.7x FY26E and 22.9x FY27E are not too demanding, its future target multiple is likely to be a function of its success in these new segments. The success will not only be in terms of market share gains but also without materially hurting core returns – which is likely to be a herculean task, in our opinion. We retain our target multiple for Balkrishna Industries and continue to value it at 22x FY27E. However, this may warrant a change going forward if Balkrishna Industries’ returns plunge due to this foray. Reiterate Neutral with a target price of Rs 2,553..Click on the attachment to read the full report:.Ashok Leyland Q4 Results Review: Margin Beat Aided By Improved Mix; Motilal Oswal Maintains 'Buy' .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 Q4 Results Review: Motilal Oswal Maintains 'Neutral' Stance, Cuts Target Price

While the stock has not done well in recent past and its valuations are not too demanding, BIL's future target multiple is likely to be a function of its success in these new segments, adds brokerage

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Balkrishna Industries Q4 Results Review: Motilal Oswal Maintains 'Neutral' Stance, Cuts Target Price

While the stock has not done well in recent past and its valuations are not too demanding, BIL's future target multiple is likely to be a function of its success in these new segments, adds brokerage

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