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Buy Balkrishna Inds; target of Rs 295: Ventura
6/09/2012 02:24 PM
Ventura is bullish on Balkrishna Industries and has recommended buy rating on the stock with a target of Rs 295, in its June 1, 2012 research report.
Balkrishna Industries (BKT)s Net Sales of Rs 787 crore (42% YoY) for Q4FY12 is in line with expectations. Both increased volume (36358 MT, +19% YoY) and better realisations (Rs 217/kg, +21% YoY) helped the company to register a strong growth in topline. Net profit at Rs 76 crore was marginally lower than our expectations because of higher operating cost and forex losses. Aided by lower natural rubber cost, EBITDA margin for the current quarter grew by 80 bps YoY to 17.1%. However on sequential basis EBITDA margin declined by 180 bps basis on account of consumption of higher cost inventories and increased other expenses.
The volume increased primarily on the account of debottlenecking and upgradation undertaken across all manufacturing facilities. As a result of this, the total achievable capacity has increased to 144000 TPA as
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