Nifty Next

Tuesday, August 25, 2020

Balkrishna Industries Ltd – Agri tyre exports will boost its financials

Balkrishna Industries Ltd is Trading at ₹1375.95 with a Gain of + 0.20 % on 25-Aug-2020 with formation of a Green Candle on Daily Price Chart at the time of writing this article.

About the Company : Balkrishna Industries is engaged in the business of manufacturing and selling of Off-Highway Tyres (OHT) in the specialist segments such as Agricultural, Industrial & Construction, Earthmovers & Port, Mining, Forestry, Lawn & Garden and All Terrain Vehicles (ATV).

Balkrishna Industries Ltd has posted Net Sales / Revenue of ₹4810 Cr & Net Profit of ₹960Cr in FY2020 and expected to post Net Sales / Revenue of ₹4890 Cr & Net Profit of ₹830 Cr in FY2021 and Net Sales / Revenue of ₹5800 Cr & Net Profit of ₹1060 Cr in FY2022 .

Whats the Future : Management is optimistic to improve the OPM to 28-30% from 77%(FY2020). Doubling the market share in industrial tyre segment (mining and construction). Agriculture tyre exports from India have been strong in US & Europe.

Valuations : The Company is now Trading at X 2.0 of its valuations ( last 4Quaters earnings considered here)at ~100% premium and at X1.91 of its FY 2021, which is now almost ~91% Premium to its value and X1.49of its FY2022 earnings with a Premium of ~ 49%.

The Fare Value of Equity Per Share is ₹719.78 for FY2021 and ₹919.00 for FY2022.

Disclaimer : We are / may going to take exposure shortly.

Join Us at Telegram # https://t.me/TheNiftyNext

The author tracks economic, behavioural and corporate tends, hoping to gauge good avenues of return based on Fundamental Valuations of Stocks, a follower of EPV method. You can reach me/us at | Twitter # NiftyNext1 | e-Mail : Mail@NiftyNext.Com | Tel +91 8802230836 | Telegram # TheNiftyNext |

Suprajit Engineering Ltd – Valuations Perfect

Suprajit Engineering Ltd is Trading at ₹190.70 with a Gain of +4.27 % on 25-Aug-2020 with formation of a Green Candle on Daily Price Chart at the time of writing this article.

About the Company : Suprajit Engineering is engaged in the business of manufacturing of auto components consisting mainly of control cables, speedo cables, auto lamps and other components for automobiles and caters to both domestic and international markets

Suprajit Engineering has posted Net Sales / Revenue of ₹1563 Cr & Net Profit of ₹1314 Cr in FY2020 and expected to post Net Sales / Revenue of ₹1485 Cr & Net Profit of ₹104 Cr in FY2021 and Net Sales / Revenue of ₹1856 Cr & Net Profit of ₹167 Cr in FY2022 .

Whats the Future : Automotive segment is witnessing a V-shaped recovery in demand.

Valuations : The Company is now Trading at X 1.90 of its valuations ( last 4Quaters earnings considered here)at ~90 % premium and at X1.47 of its FY 2021, which is now almost ~47% Premium to its value and X0.91 of its FY2022 earnings with a Discount of ~ 9%.

The Fare Value of Equity Per Share is ₹124.65 for FY2021 and ₹200.16 for FY2022.

Disclaimer : We are / may going to take exposure shortly.

Join Us at Telegram # https://t.me/TheNiftyNext