Balkrishna Industries Limited

Consumer Cyclical — Auto Parts · NSE

₹2,057.00+₹4.70 (+0.23%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by negative free cash flow.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Balkrishna Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Balkrishna Industries Limited manufactures and sells tires under the BKT brand in India, Europe, North America, and internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Employees4,170

Annual revenue₹10,730 Cr

How does it make money?

Turns over ₹10,730 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 4,170 employees supports ₹2.57 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.57 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 13.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE23.0%

What is the outlook?

13 analysts covering the stock expect revenue to grow about 17.8% and earnings to grow about 21.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+17.8%

Est. earnings growth+21.7%

Analysts13

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +11% while net margin moved +6% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+11%

Margin effect+6%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 3.6% — barely ahead of inflation
✗ Profit CAGR of only 5.5%

Quality vs. Valuation

Company Quality

58/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

56/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

28.3x

3Y Median

35.2x

40 monthly readings · mean 36.4x · range 24.3x–60.8x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 20% below its 3y median of 35.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 38% below the peer median of 45.7x.

vs. its own history

Fair

35.2x median over 40 months · -20%

vs. sector peers

Cheap

45.7x median of 4 peers · -38%

vs. generic bands

Fair

15x–35x

EV/EBITDA

18.6x

PEG

5.11

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 16.4% to 13.8% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹754 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 38% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 3.6% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 20%✓ 21.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹754 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✗ 3.6% CAGR
Latest reported year was 25.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 11%✓ 13.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹39,765 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

28.3x

Fair

Fairly valued against the generic band

P/B Ratio

3.63x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹72.71

Profitable

Profitable on a per-share basis

ROE

11.3%

Moderate

Moderate capital efficiency

ROCE

13.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.38x

Low

Conservative leverage

Revenue Growth (YoY)

25.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

56.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.78%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹754 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

20.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

15.6%

Good

Healthy core-business profitability

Net Margin

12.2%

Good

Strong bottom-line conversion

Current Ratio

1.01

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.39

Defensive

Steadier than the market

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

2100.2 / 2238.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

29.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹9,646 Cr	₹9,304 Cr	₹10,357 Cr	₹10,730 Cr	+3.6%
EBITDA	₹1,999 Cr	₹2,480 Cr	₹2,798 Cr	₹2,354 Cr	+5.6%
EBITDA Margin	20.7%	26.6%	27.0%	21.9%	—
PAT (Net Profit)	₹1,057 Cr	₹1,471 Cr	₹1,655 Cr	₹1,243 Cr	+5.5%
EPS	₹54.7	₹76.12	₹85.61	₹64.3	+5.5%
ROE	14.0%	16.6%	15.9%	11.3%	—
ROCE	16.4%	20.4%	20.1%	13.8%	—
Total Debt	₹3,347 Cr	₹3,099 Cr	₹3,267 Cr	₹4,111 Cr	+7.1%
Free Cash Flow	-₹315 Cr	₹983 Cr	₹281 Cr	-₹754 Cr	—

🟢 Revenue has grown at 3.6% a year over 3 years.

🟢 EBITDA has grown at 5.6% a year over 3 years.

🟢 EBITDA Margin has risen from 20.7% to 21.9% over 3 years (+1.2 pts).

🟢 PAT (Net Profit) has grown at 5.5% a year over 3 years.

🟢 EPS has grown at 5.5% a year over 3 years.

🔴 ROE has fallen from 14.0% to 11.3% over 3 years (-2.6 pts).

🔴 ROCE has fallen from 16.4% to 13.8% over 3 years (-2.6 pts).

🔴 Total Debt has grown at 7.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹17,766 Cr

Total Liabilities

₹6,811 Cr

Cash & Equivalents

₹61 Cr

Operating Cash Flow

₹2,249 Cr

Capex

-₹3,003 Cr

Shareholding (proxy)

Institutional Holding

31.5%

Insider Holding

58.5%

Corporate Actions

Next Earnings

30 Oct 2026

Dividend Rate

₹16

Ex-Dividend Date

04 Aug 2026

Analyst Consensus

Recommendations

9 Buy · 3 Hold · 7 Sell

Target Price (Mean)

₹2,399.42

+16.6% vs CMP

Target Range

₹1,979 – ₹3,028

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 positive3 mixed2 general

Balkrishna Industries fixes record date for final dividend

scanx.trade, 18 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

BALKRISIND Outlook for the Week

Equitypandit, 09 Oct

The Off-Highway Tyre Demand Puzzle: What the Export Demand Test Really Reveals

Kalkine India, 16 Oct

Balkrishna Industries shares gain 2.10% to Rs 2,518.00

Moneycontrol.com, 10 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Balkrishna Industries soars 10% amid huge volume on healthy Q1 results

Business Standard, 30 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

We Think That There Are More Issues For Balkrishna Industries (NSE:BALKRISIND) Than Just Sluggish Earnings

Simply Wall Street, 14 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingValuation · Risk

WeakGrowth

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

2 of 5 tripwires tripped — Free cash flow remains positive; Revenue growth stays above 4% a year · see Key things to watch ↑