10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Thursday, September 24, 2009

Balkrishna Industries Ltd:Future growth outlook and prospects

Scripscan: Balkrishna Industries Ltd
Bse code:502355

Story:Balkrishna Industries Ltd (BIL), world's premier manufacturer of pneumatic tyres for special applications was incorporated on November 20, 1961. It focuses on the production of off-highway tyres that includes agricultural, industry, material
handling, forestry, lawn and garden, construction and earth moving tyres. Thecompany operates mainly in the business segment of tyres which by virtue becomesits core business. It’s other businesses are fabric processing andpapermanufacturing which has been transferred to its subsidiaries BKT Synthetic Ltd. and BKT Paper Mills Ltd. BIL mainly serves the agriculture segment in Europe. In Europe the farms are largeand method scientific. As per Michelin estimates, it is expected that the radialisation in agriculture business - Europe will increase to 81% by 2012. This will act as a growth impetus for the company in near future.BIL operates in a niche segment of manufacturing and exporting Off-Highway Tyres. The company has a global market share of around 3%, which has been achieved through a range of around 1800 products. The company is looking forward to enhance the breadth of its offering, so that it becomes a single-source supplier to a range of customers worldwide.BIL has strong global positioning which enables to ship its products to any corner of the world. Most of BILs export volume goes to Europe, followed by the US, Australia, the Middle East and Asia. Altogether it has 1700 SKUs offering a widerange of products. They sell around 10–12 per cent of the sales volume to vehicleOEMs, with the rest being sold to the aftermarket. In addition to distributors, thecompany also has their own representatives in the UK, US & Italy.BIL leverages its strong product line and lower labour costs to compete with other global players in overseasmarkets. It uses India's combination of engineering skills and low labor and production costs to build its market share. On the labor side, the cost of Balkrishna's workers is just 5% of sales, compared with 33% for Western players. This helps the company to enjoy high operating margins as compared to itscompetitors. At current market price of Rs. 375/-, the stock is trading at P/E 4.5 its fy11 earnings.A great value buy for 3-5 years horizon.

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner