Home >Markets >Stock Markets >Analysts expect 22% upside in Balkrishna Industries

Balkrishna Industries’ (BIL) key export markets continue to witness improving demand . In Nov’20 industry exports grew 14% YoY. The latest industry export data (Nov’20) continues to be driven by agri demand (up ~23% YoY) while OTR witnessed a flattish ~1% decline. Interesting to note, demand in the US region improved across segments (OTR+Ag was up ~34% MoM) as post-election political uncertainty fades away. The latest export data continues to support the V-shaped demand rebound: YTD exports are up 6% led by Ag (up 16%). On a regional basis, in Nov’20, growth was led by RoW (up 34%) followed by the EU region (up 14%).

ICICI Securities is positive on the stock and maintains buy rating with a target price of 1,969 per share, over 21% up from its current market price.

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Current market price of the share is 1,620. Another brokerage, Kotak Securities has a buy recommendation on Balkrishna Industries with a target price of 1,690. The share price has gone up by 63% in 2020.

For the quarter ended September , Balkrishna Industries has reported a Consolidated sales of 1,578 crore, up 67.40 % from last quarter sales of 943 crore and up 45.53 % from last year same quarter sales of 1,084 crore. The automobile company reported net profit after tax of 341 crore in latest quarter.

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