Balkrishna Industries (BKT) saw its shares drop over 2% after Nuvama slashed its target price from ₹3,300 to ₹3,100, citing near-term demand concerns in Europe and the US. Despite this, the brokerage maintained a ‘Buy’ rating, highlighting BKT’s long-term growth potential. As of 9:22 AM, the shares were trading 2.06% lower at Rs 2,529.25.
The brokerage shared insights from an analyst meet at BKT’s Bhuj plant, highlighting key capacity expansions and long-term growth strategies.. The plant, with a current production capacity of 195,000 tonnes per annum (tpa), has room to grow by another 150,000–200,000 tpa. Additionally, a new 35,000 tpa capacity will come online in FY26, and the company’s advanced carbon black plant (30,000 tpa) is expected to generate ₹5 billion in revenues within two years.
BKT aims to expand its global market share from 6–7% to 10% over the medium term. However, short-term challenges persist due to weak demand from key markets. Nuvama has trimmed its FY26E/27E EBITDA estimates by around 3% due to lower revenue expectations.
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