Balkrishna Industries - Strong Growth In Agri Segment Tyres In US, Europe: ICICI Securities

ICICI Securities Report

Balkrishna Industries Ltd.'s India off-highway trye exports in May-2024, at $163 million, were higher by 13% YoY versus its trailing 12-month average monthly exports of $144 million. Agri/OTR segment exports were up ~14%/12% YoY, respectively. In Europe, agri segment was up 21% YoY, driving much of overall growth, whereas OTR segment was flat YoY.

Similarly, U.S. saw growth of 20% in agri versus flattish growth in OTR segment. For rest of world, exports increased 9% YoY, cushioning overall growth, amid strong growth in US/EU.

We continue to build in 10% volume growth for Balkrishna Industries in FY25E, keeping estimates unchanged.

We maintain Hold on the company with DCF-based target price unchanged at Rs 3,200, implying 26 times FY26E earnings per share.

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