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502355: Future Revenue Slowdown Will Likely Outweigh Modest Margin Improvement

Global Shifts And Strict Mandates Will Diminish Off-Highway Revenues

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502355
AnalystLowTarget
Not Invested
Published 25 Jun 2025

Update shared on 15 Dec 2025

Fair value Decreased 2.00%
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AnalystLowTarget's Fair Value
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1Y
-16.1%
7D
2.3%

Analysts have trimmed their price target on Balkrishna Industries slightly from ₹2,000 to ₹1,960, as they factor in a moderation in revenue growth assumptions partly offset by marginally stronger profit margins and a higher expected future P E multiple.

What's in the News

  • Board meeting scheduled for October 31, 2025, at 16:00 IST to review unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025 (company filing)
  • Board to consider declaration of a second interim dividend on equity shares for FY 2025-26, indicating potential near term shareholder payout (company filing)
  • Meeting agenda also includes consideration of other corporate matters, leaving scope for additional governance or strategic decisions (company filing)

Valuation Changes

  • Fair Value: Trimmed slightly from ₹2,000 to ₹1,960, implying a modest reduction in the intrinsic value estimate.
  • Discount Rate: Risen slightly from 14.51% to 14.93%, reflecting a marginally higher required return or risk premium.
  • Revenue Growth: Reduced meaningfully from 13.03% to 9.90%, indicating a more conservative outlook on top line expansion.
  • Net Profit Margin: Improved slightly from 14.34% to 14.61%, suggesting a small uplift in expected profitability.
  • Future P/E: Increased moderately from 26.69x to 28.29x, signaling a somewhat higher valuation multiple applied to forward earnings.

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Disclaimer

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