Balkrishna Industries (BKT) saw a notable 3% rise in its shares following an upgrade from Nomura, which raised its rating from Neutral to Buy with a revised target price of Rs 3,242. The upgrade reflects BKT’s strong potential to capitalize on a demand recovery and strategic diversification efforts. As of 10:54 AM, the shares were trading 3.45% higher at Rs 2,653.10.
BKT announced remarkable financial growth for the third quarter of FY25. Volumes for the firm increased by 5% year over year to 76,343 tonnes from 72,749 tonnes in Q3 FY24. EBITDA rose 9% YoY to Rs 589 crore, while revenue rose 11% YoY to Rs 2,541 crore. However, because of weak demand in important regions, the EBITDA margin decreased somewhat from 23.6% to 23.2%.
Due to a sharp increase in other revenue, which rose to Rs 187 crore from Rs 66.5 crore in Q3 FY24, profit after tax skyrocketed by 42% YoY to Rs 439 crore. Nomura pointed out that BKT is well-positioned for long-term development because to its entry into the US and off-the-road (OTR) sectors as well as its steady channel inventory.
Despite facing macroeconomic challenges, BKT’s ongoing leadership changes and focus on core markets like India and the US are expected to drive recovery, with stronger growth anticipated by FY26.
Balkrishna Industries shares opened at 2,602.05 today, with a high of 2,660.00 and a low of 2,593.50. Over the past 52 weeks, the stock has reached a high of 3,375.00 and a low of 2,193.80, reflecting some volatility.
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