Balkrishna Ind: Profit booking after Q3 results
Balkrishna Industries’ shares are down close to 4% or Rs. 28, and currently trading at Rs. 680 per share. Profit booking on good third quarter results, declared on Saturday, seems to be the reason for the share price to rule soft, as shares were trading higher since Wednesday on expectations of strong quarterly numbers. Share price rose 11% in 3 trading sessions, from Rs. 645 on Wednesday to a high of Rs. 715 on Friday on NSE.
Off-highway tyres maker Balkrishna Industries, part of the Siyaram-Poddar Group, declared 9.5% QoQ rise in net revenue for Q3, with EBITDA jumping 28.2% QoQ to Rs. 267 crore as input became cheaper. Due to lower finance cost and other efficiencies, net profit rose 44.1% QoQ to Rs. 130 crore, resulting in EPS of Rs. 13.44 and Rs. Rs.34.61 for 3 months and 9 months ended 31st December 2014, respectively.
Company’s current market cap stands at Rs. 6,600 crore while EV is close to Rs. 8,200 crore. Promoters own 58.3% stake, institutional investors hold 29.4% leaving 12.3% as public float.