NSEI:BALKRISIND

Stock Analysis Report

Executive Summary

Balkrishna Industries Limited manufactures and sells tires worldwide.

Snowflake

Fundamentals

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Balkrishna Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

11.8%

BALKRISIND

5.9%

IN Auto Components

3.9%

IN Market


1 Year Return

-19.4%

BALKRISIND

-22.7%

IN Auto Components

6.0%

IN Market

Return vs Industry: BALKRISIND exceeded the Indian Auto Components industry which returned -22.7% over the past year.

Return vs Market: BALKRISIND underperformed the Indian Market which returned 6% over the past year.


Shareholder returns

BALKRISINDIndustryMarket
7 Day11.8%5.9%3.9%
30 Day5.2%7.0%7.8%
90 Day14.3%0.6%2.5%
1 Year-18.6%-19.4%-21.9%-22.7%8.2%6.0%
3 Year63.5%60.0%-10.5%-12.7%23.0%16.7%
5 Year131.4%123.2%28.4%23.6%43.5%30.0%

Price Volatility Vs. Market

How volatile is Balkrishna Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Balkrishna Industries undervalued compared to its fair value and its price relative to the market?

22.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: BALKRISIND (₹837.3) is trading above our estimate of fair value (₹277.82)

Significantly Undervalued: BALKRISIND is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BALKRISIND is poor value based on its PE Ratio (22.3x) compared to the Auto Components industry average (12.9x).

PE vs Market: BALKRISIND is poor value based on its PE Ratio (22.3x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: BALKRISIND is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: BALKRISIND is overvalued based on its PB Ratio (3.5x) compared to the IN Auto Components industry average (1.3x).


Next Steps

Future Growth

How is Balkrishna Industries forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BALKRISIND's forecast earnings growth (14% per year) is above the savings rate (7.6%).

Earnings vs Market: BALKRISIND's earnings (14% per year) are forecast to grow slower than the Indian market (18.2% per year).

High Growth Earnings: BALKRISIND's earnings are forecast to grow, but not significantly.

Revenue vs Market: BALKRISIND's revenue (9.9% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: BALKRISIND's revenue (9.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BALKRISIND's Return on Equity is forecast to be low in 3 years time (15.4%).


Next Steps

Past Performance

How has Balkrishna Industries performed over the past 5 years?

11.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BALKRISIND's earnings have grown by 11.4% per year over the past 5 years.

Accelerating Growth: BALKRISIND's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BALKRISIND had negative earnings growth (-2.7%) over the past year, making it difficult to compare to the Auto Components industry average (-4.6%).


Return on Equity

High ROE: BALKRISIND's Return on Equity (15.6%) is considered low.


Return on Assets

ROA vs Industry: BALKRISIND has a higher Return on Assets than the Auto Components industry average last year.


Return on Capital Employed

ROCE Improving: BALKRISIND has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Balkrishna Industries's financial position?


Financial Position Analysis

Short Term Liabilities: BALKRISIND's short term assets (₹24.7B) exceeds its short term liabilities (₹14.5B)

Long Term Liabilities: BALKRISIND's short term assets (24.7B) exceeds its long term liabilities (3.7B)


Debt to Equity History and Analysis

Debt Level: BALKRISIND's debt to equity ratio (18.7%) is considered satisfactory

Reducing Debt: BALKRISIND's debt to equity ratio has reduced from 121.5% to 18.7% over the past 5 years.

Debt Coverage: BALKRISIND's debt is well covered by operating cash flow (94.2%).

Interest Coverage: BALKRISIND earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: BALKRISIND has a high level of physical assets or inventory.

Debt Coverage by Assets: BALKRISIND's debt is covered by short term assets (assets are 2.836030x debt).


Next Steps

Dividend

What is Balkrishna Industries's current dividend yield, its reliability and sustainability?

0.95%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%0.6%markettop25%2.4%industryaverage1.0%forecastin3Years1.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BALKRISIND's dividend (0.95%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: BALKRISIND's dividend (0.95%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).

Stable Dividend: BALKRISIND's dividends per share have been stable in the past 10 years.

Growing Dividend: BALKRISIND's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.3%), BALKRISIND's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BALKRISIND's dividends in 3 years are forecast to be well covered by earnings (18.3% payout ratio).


Next Steps

Management

What is the CEO of Balkrishna Industries's salary, the management and board of directors tenure and is there insider trading?

14.9yrs

Average management tenure


CEO

Arvind Kumar Poddar (62yo)

13.2yrs

Tenure

₹294,600,000

Compensation

Mr. Arvind Kumar Mahabirprasad Poddar, B.Com has been Managing Director of Balkrishna Industries Ltd. since August 1, 2006. Mr. Poddar served as Joint Managing Director of Siyaram Silk Mills Ltd. He worked ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Arvind Kumar's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Arvind Kumar's compensation has been consistent with company performance over the past year.


Management Age and Tenure

14.9yrs

Average Tenure

58.5yo

Average Age

Experienced Management: BALKRISIND's management team is seasoned and experienced (14.9 years average tenure).


Board Age and Tenure

7.5yrs

Average Tenure

59yo

Average Age

Experienced Board: BALKRISIND's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Vipul Shah (56yo)

    Compliance Officer

    • Tenure: 7.7yrs
    • Compensation: ₹6.10m
  • Arvind Kumar Poddar (62yo)

    Chairman & MD

    • Tenure: 13.2yrs
    • Compensation: ₹294.60m
  • Rajiv Poddar (34yo)

    Joint MD & Executive Director

    • Tenure: 10.8yrs
    • Compensation: ₹294.20m
  • Dilip Vaidya (66yo)

    Director of Technical

    • Tenure: 0yrs
    • Compensation: ₹2.49m
  • Basantkumar Bansal (53yo)

    Director of Finance

    • Tenure: 0yrs
    • Compensation: ₹15.40m
  • Madhusudan Bajaj (61yo)

    Senior Vice President of Commercial

    • Tenure: 17.3yrs
    • Compensation: ₹2.73m
  • Anant Pandit (69yo)

    Senior Vice President of Technology

    • Tenure: 16.7yrs
    • Compensation: ₹2.64m
  • Ankit Poddar (31yo)

    Executive Director

    • Tenure: 8.1yrs

Board Members

  • Sandeep Junnarkar (68yo)

    Independent Director

    • Tenure: 0.6yrs
  • Vipul Shah (56yo)

    Compliance Officer

    • Tenure: 7.7yrs
    • Compensation: ₹6.10m
  • Arvind Kumar Poddar (62yo)

    Chairman & MD

    • Tenure: 13.2yrs
    • Compensation: ₹294.60m
  • Laxmidas Merchant (59yo)

    Non-Executive Independent Director

    • Tenure: 10.8yrs
    • Compensation: ₹230.00k
  • Rajiv Poddar (34yo)

    Joint MD & Executive Director

    • Tenure: 10.8yrs
    • Compensation: ₹294.20m
  • Vijaylaxmi Poddar (59yo)

    Non-Executive Director

    • Tenure: 7.4yrs
    • Compensation: ₹165.00k
  • Ashok Saraf (63yo)

    Non-Executive Independent Director

    • Tenure: 11.4yrs
    • Compensation: ₹285.00k
  • Sanjay Asher (54yo)

    Non-Executive & Independent Director

    • Tenure: 9.4yrs
    • Compensation: ₹105.00k
  • Pannkaj Ghadiali (63yo)

    Additional Independent Director

    • Tenure: 1.9yrs
    • Compensation: ₹335.00k
  • Shruti Shah (39yo)

    Additional Independent Director

    • Tenure: 0.7yrs
    • Compensation: ₹75.00k

Company Information

Balkrishna Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Balkrishna Industries Limited
  • Ticker: BALKRISIND
  • Exchange: NSEI
  • Founded: 1961
  • Industry: Tires and Rubber
  • Sector: Automobiles
  • Market Cap: ₹161.990b
  • Shares outstanding: 193.32m
  • Website: https://www.bkt-tires.com

Location

  • Balkrishna Industries Limited
  • BKT House
  • C/15, Trade World
  • Mumbai
  • Maharashtra
  • 400013
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
502355BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 1995
BALKRISINDNSEI (National Stock Exchange of India)YesEquity SharesININRMar 1995

Biography

Balkrishna Industries Limited manufactures and sells tires worldwide. The company offers off-highway tires for use in various applications, such as agricultural, industrial and construction, earthmoving an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:50
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.