Balkrishna Industries Completes Rs.300 Crore Mould Manufacturing Plant at Bhuj Unit

Balkrishna Industries Ltd. (BKT) has recently announced the completion of a new mould manufacturing unit at its plant in Bhuj, Gujarat. This major addition was built with a capital expenditure of Rs.300 crore, boosting the company’s production capacity.

Quarterly Performance & Net Profit 

BKT’s financial results surpassed market expectations last quarter, driven by increased volume. The company pulled off an operating margin of 26.3%, benefiting from lower raw material and other costs despite a rise in freight expenses. For Q4FY24, BKT reported an 87.4% increase in net profit, reaching Rs.486.8 crore compared to Rs.260 crore in the same period last year. Revenue saw a 16% growth, surging to Rs.2,682 crore from Rs.2,317 crore.

Background & Client Base

Founded in 1987, BKT has specialized in Off-Highway tyres for over three decades. The company focuses on segments such as agriculture, construction, industrial, port, mining, ATV, and gardening applications. BKT’s clientele includes Original Equipment Manufacturers (OEMs) like New Holland, John Deere, AGCO, CLASS, JCB, CAT, Sakai, Goldoni, TEREX, and Turk Traktor.

Analyst Ratings

Shares of Balkrishna Industries closed 0.89% higher at Rs.3,150.75 apiece, outperforming the 0.35% advance in the BSE Sensex. Over the past 12 months, the company’s stock has risen by 30.45% and gained around 22% on a year-to-date basis. Among 25 analysts tracking the stock, 10 recommend a ‘buy,’ nine suggest a ‘sell,’ and six advise ‘hold,’ with the average 12-month price target indicating a potential downside of 30.4%.

Conclusion: In conclusion, Balkrishna Industries’ completion of the Rs.300 crore mould manufacturing unit in Bhuj signifies a substantial investment aimed at strengthening production. With shares rising 30.45% over the past 12 months and gaining 22% YTD, BKT has demonstrated strong market traction. Additionally, this expansion aligns with BKT’s plans to cater to specialized segments like agriculture, construction, and industrial sectors, reinforcing its competitive edge in the tyre manufacturing sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.