Edelweiss' research report on Balkrishna Industries
Balkrishna Industries�� (BKT) Q4FY18 revenue jumped 25% YoY (8% ahead of estimates), driven by robust ~17% YoY volume spurt and ~7% YoY realisation surge. Growth was well spread across segments/geographies. For FY18, volume grew ~16% YoY to ~199,200MT, ~2-8% higher than management��s guidance of 185-195,000MT. For FY19, BKT has guided volume of ~220,000MT (up 10% YoY over FY18).
Outlook
BKT is well poised to take advantage of the uptick in global industry, capitalising on its cost leadership and surplus capacity. We estimate 25% PAT CAGR over FY18-20 and maintain ��BUY�� with TP of INR1,313� . At CMP, the stock trades at 17.8x FY20E EPS.
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Read More First Published on May 29, 2018 06:10 pm
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