Shares of this tyre manufacturing company are buzzing on the bourses today!

Shares of this tyre manufacturing company are buzzing on the bourses today!

by 5paisa Research Team Last Updated: Nov 15, 2022 - 12:09 pm 9.4k Views

The company announced its Q2FY23 results and declared an interim dividend of Rs 4 per equity share.

The shares of Balkrishna Industries are buzzing on the bourses today. As of 11.48 am, the shares of the company are trading higher by 1.34%. Meanwhile, the frontline index S&P BSE Sensex is down by 0.18%.

The rally in the share price of Balkrishna Industries has come on the back of Q2FY23 results, which were announced yesterday. During the quarter, the consolidated net sales increased by 28.24% YoY to Rs 2,657.52 crore in Q2FY23. On the segmental front, agricultural sales volume contributed 64%, OTR contributed 32.9% and other services contributed 3.1%. However, the rise in raw materials and logistics costs pulled the PBIDT (ex OI) income down. It stood at Rs 426.26 crore, down by 20.75% on a YoY basis. The tax expenses slightly decreased YoY, cushioning the PAT decline. Subsequently, the PAT was down by 2.24% YoY, while the corresponding margin contracted by 449 bps YoY to 14.38%.

Apart from the Q2FY23 results, the company declared an interim dividend of Rs 4.00 per equity share (200%) on the equity shares of Rs 2 each (face value) for the financial year 2022-23.

Balkrishna Industries offers tyres, tubes and tyre flaps. It manufactures a range of off-highway tyres (OHT). These tires are mainly meant for agricultural, industrial and construction, earthmover and port, mining, forestry, lawn and garden and all-terrain vehicles (ATV).

The company is currently trading at a TTM PE of 25.85x against the industry PE of 45.6x. In FY22, the company delivered an ROE & ROCE of 22.2% and 24.1%, respectively. The company is a constituent of Group A stocks and commands a market capitalization of Rs 36,794.06 crore.

Today, the scrip opened at Rs 1823.90 and has touched a high and low of Rs 1967.30 and Rs 1801, respectively. So far 61,747 shares have been traded on the bourses. The stock has a 52-week high & low of Rs 2,536.75 and Rs 1,681.95, respectively on BSE.

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