Skip to content. | Skip to navigation

Sections
Search Company:
Personal tools
You are here: Home → Companies → Balkrishna Industries → Stock Analysis
Log in


Forgot your password?
Pre-register

To pre-register for Public Beta, please fill up the registration form.

 

Balkrishna Industries

Company Background

Balkrishna Industries (BKT) is part of “Siyaram-Poddar Group” with group turnover of US$550 mln. BKT today is one of the world’s leading manufacturers of “OFF-HIGHWAY TYRES”. BKT has the widest product range containing more than 1700 SKU’s (Stock Keeping Units) and is “One stop Shop” for off-highway tyre solutions.

The success story of BKT, begun in 1995 when it entered into production of cross ply off-highway tyres, With the help of persistent & intensive market research coupled with ever expanding production capabilities, BKT has made its mark in the niche segments like Agricultural, Construction, Industrial, Earthmover, ATV (All Terrain Vehicle) and Turf care applications. 

BKT is continuously developing its production base and has expanded its product range significantly. With three manufacturing plants and one In-house Hi-tech Mould-manufacturing facility at different locations in India, BKT is very well equipped to feed the ever-growing demand of its worldwide customers. 4th Tyre plant a Greenfield project is already underway.

About 95% of our tyre production is exported, out of which 70% is sold in Europe, where farms are large and scientific methods of farming, requiring tractors with different tyre types for agribusinesses. Other major markets for BKT are North America & Middle East followed by South America, Africa, Australia & Asia.

Talking about OEM's, BKT supplies its products to major OEM's across the globe in construction segment & has also been successful in making inroads to the Agricultural OEM market.

Today BKT has presence in more then 100 countries across the globe with a vision to attain global leadership in off highway tyre solutions. 

 

 

Growth Snapshot

We can't just look at a series of past growth rates and assume that they will predict the future - if investing were that easy, money managers would be paid much less, and this stock analysis would be much shorter. It’s critical to investigate the Sources of a company's growth.
Variable FY05 FY06 FY07 FY08 FY09
Sales Turnover (Rs. Cr.) 596.69 887.23 990.39 1227.89 1362.15
Sales Growth Year on Year 48.09 13.07 24.64 10.83
3yr Average Sales Growth 28.60 16.18
3yr Sales CAGR 29.40 18.71 17.53
5yr Average Sales growth 24.16
5yr Sales CAGR 23.32
Profit After Tax (PAT) (Rs. Cr.) 69.08 83.09 105.57 70.30 208.73
Adjusted EPS 7.15 8.60 10.92 7.27 21.60
EPS Growth Year on Year 20.28 27.06 -33.41 196.91
3yr Average EPS growth 4.64 63.52
3yr EPS CAGR 23.62 -8.02 40.61
5yr Average EPS growth 52.71
5yr EPS CAGR 31.84

Edit This Section.

Profitability Snapshot

Profitability is the second, and in many ways, the most crucial, part of our Analysis framework. How much profit is the company generating relative to the amount of money invested in the business - the returns? This is the real key to separating a great company from average ones -the higher that return, the more attractive that business. Net profit Margins and comparing cash flow from operations to reported earnings per share are good ways to get a rough idea of the company's profitability (because cash flow from Operations represents real profits!). But neither account for the amount of capital that's tied up in the business, and that's something we cant ignore. We need to know how much economic profit the company is able to generate per dollar/rupee of capital employed because it will have more excess profits to re-invest which will give it an advantage over less-efficient competitors.
Variable FY05 FY06 FY07 FY08 FY09
Operating Profit Margin 17.78 18.52 20.72 13.42 24.71
Net Profit Margin 11.83 9.61 10.79 5.77 15.45
Fixed Asset Turnover 2.25 2.17 2.30 2.28 2.20
Asset Turnover 1.00 1.16 1.03 1.30 1.20
Return on Assets 11.82 11.10 11.16 7.47 18.55
Financial Leverage 2.03 2.15 2.30 2.01 1.70
Return on Equity 24.03 23.91 25.68 15.03 31.59
Return on Capital Employed 20.36 19.58 20.05 15.49 29.32
Debtor Days 49.72 71.19 72.78 65.60 64.92
Inventory Days 96.46 77.53 103.23 52.80 88.96
Cash from Operating Activities (Rs. Cr.)
Operating Cash Flow to Sales
Capital Expenditure 182.49 120.57 113.90 130.70
Free Cash Flow
Free Cash Flow to Sales
Equity Dividend (Rs. Cr.) 19.07 20.30 20.30 11.60 13.53
Dividend per share 1.97 2.10 2.10 1.20 1.40
Adjusted DPS 1.97 2.10 2.10 1.20 1.40
Dividend Growth Year on Year 6.45 0.00 -42.86 16.64
3yr DPS CAGR 3.17 -24.41 -18.36
5yr DPS CAGR -8.22
Dividend Payout 27.61 24.43 19.23 16.50 6.48

Edit This Section.

Common size P&L Statement

Can we dig deeper to see what else we can understand about how this company makes money? A good way is to look at the common size profit and loss statement. Common size statements are great tools for evaluating companies because they put every line item in context by looking at each of them as a percentage of Sales.
Variable FY05 FY06 FY07 FY08 FY09
Common Size Sales 100.00 100.00 100.00 100.00 100.00
Common Size Raw Material 56.54 55.43 58.37 58.94 50.35
Common Size Power & Fuel 7.66 6.58 4.67 4.40 4.03
Common Size Employee Cost 3.06 2.67 2.48 2.52 2.70
Common Size COGS 69.26 66.61 67.42 69.33 61.67
Gross Profit Margin 30.74 33.39 32.58 30.67 38.33
Common Size Depreciation 4.68 4.16 4.48 4.64 4.90
Common Size Interest Cost 2.10 2.02 2.76 3.08 1.38
Common Size SG&A 15.66 13.90 13.67 17.66 13.25
Operating Profit Margin 17.78 18.52 20.72 13.42 24.71

Edit This Section.

Financial Health Snapshot

Once we have figured out how fast (and why) a company has grown and how profitable it is, we need to look at its financial health. Even the most beautiful home needs a solid foundation, after all.
Variable FY05 FY06 FY07 FY08 FY09
Financial Leverage 2.03 2.15 2.30 2.01 1.70
Debt to Assets 0.51 0.54 0.57 0.50 0.41
Debt to Equity 1.03 1.15 1.30 1.01 0.70
Interest Coverage 9.72 8.37 7.03 3.89 17.68
Interest Cost to Total Debt 4.12 4.37 5.04 7.93 4.02
Current Ratio 4.54 4.09 4.57 4.57 4.79
Quick Ratio 3.37 3.07 3.33 3.68 3.60
Cash to Assets 13.15 0.72 0.92 1.18 0.38

Edit This Section.

Document Actions
Terms & Conditions

Before using this website, please review ValuePickr.com Terms and Conditions of Service.

© Copyright 2010 ValuePickr.com. All rights reserved.