Balkrishna Industries Ltd.
NSE: BALKRISINDBalkrishna Industries Ltd.: A 30-second snapshot
Balkrishna Industries (BALKRISIND) is a specialty tyre manufacturer in the Auto sector, currently priced at ₹2,148 — 8.7% below its 50-DMA and 8.7% below its 200-DMA, with a 12-month decline of 21.4%. FY26 results showed revenue growth offset by a reported ~25% YoY fall in net profit, with ongoing major capex targeting revenue doubling by FY30. The trailing PE of 33.4 represents a premium to most Auto peers despite the weakest quality score (28 of 100) in the peer group.
P/E
33.4
Forward P/E
21.5
ROE
—
Debt / Equity
35.27
Profit Margin
+12.3%
Div. Yield
+0.8%
5Y ROE > 15%
3/5
5Y FCF > 0
2/5
Quality
36/100
News
8 headlines · 2 positive · 4 negative
Balkrishna Industries stock (INE787D01026): Earnings miss signals margin pressure ahead - AD HOC NEWS
AD HOC NEWS
BALKRISIND: FY26 revenue rose but net profit and margins declined; major capex and Rs. 4 dividend proposed - TradingView
TradingView
BALKRISIND: FY26 profit fell 25% YoY on flat revenue; major capex aims to double revenue by FY30 - TradingView
TradingView
Balkrishna Dividend: Largecap auto ancillary firm declares 200% payout—Have it in portfolio? - Zee Business
Zee Business
Balkrishna Industries Ltd stock (INE787D01026): valuation pressure after recent slide - AD HOC NEWS
AD HOC NEWS
Recent context
- ·FY26 results (per TradingView and ad-hoc coverage) showed net profit down approximately 25% YoY on flat-to-modestly-higher revenue, with margin pressure cited as a primary driver; an earnings miss was reported against analyst estimates.
- ·Management announced a major capex program with the ambition to double revenue by FY30, financed in part by debt — the rising D/E trend and the capex scale are the central near-term financial variables for the business.
- ·A ₹4 per share dividend (200% face-value payout) was declared alongside the results; Zee Business and other outlets flagged the payout positively even as the profit decline dominated headline coverage.
Strengths
- +Revenue grew in FY26 on a 5-year base of 6.9% CAGR, and a major capex program is underway with a stated goal of doubling revenue by FY30, signalling management commitment to long-term scale.
- +Forward PE of 21.5 is a meaningful compression from the trailing PE of 33.4, indicating the market is pricing in an earnings recovery if consensus projections materialise.
- +Dividend of ₹4 per share (200% payout) was declared in FY26 alongside the capex cycle, with a trailing yield of 0.75% — demonstrating that the board maintained distributions despite the profit decline.
- +RSI at 44.6 is in neutral territory, and nearest technical support sits at ₹2,136 — approximately 0.6% below current price — with a secondary support level at ₹2,015.
Weaknesses
- −5-year earnings CAGR of -15% and FCF positive in only 2 of available years point to sustained profit contraction and inconsistent cash generation over the measurement period.
- −Quality score of 28 ranks 5th of 6 in the Auto peer group (peer median approximately 52–55), with ROE above 15% in only 3 of available years and a consistency score of 34.
- −Debt-to-equity of 35.3 with a rising debt trend is elevated relative to auto-ancillary norms; revenue growth of 6.9% over 5 years has not translated into earnings growth (-15% over the same period), compressing returns.
- −Price is below both the 50-DMA (₹2,207) and 200-DMA (₹2,352), with a 52-week drawdown of -23.2% and a 3-month decline of -20.9%, reflecting sustained price weakness.
Open questions
- ?Does the capex program targeting revenue doubling by FY30 rely on debt financing that will further elevate the D/E ratio, and at what revenue growth rate does the incremental debt become self-funding?
- ?Is the 5-year earnings CAGR of -15% primarily a reflection of a cyclical downturn in the specialty tyre segment, or does it point to structural margin compression relative to peers?
- ?The forward PE of 21.5 implies a significant earnings recovery — what specific operational or pricing catalysts does management cite as the basis for that expectation, and have those catalysts materialised historically?
- ?Given that quality score (28) and consistency score (34) are the lowest in the peer group, what timeframe of sustained ROE improvement would be needed before the fundamentals align with the current valuation multiple?
Peer comparison: Auto
Ranks 5 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| BALKRISIND | Balkrishna Industries Ltd.You're viewing | 33.4 | — | 28 |
| Industry avg | across 5 peers | 28.0 | +15.0% | 43 |
| EICHERMOT | Eicher Motors Ltd. | 36.1 | — | 60 |
| BAJAJ-AUTO | Bajaj Auto Ltd. | 27.0 | +28.1% | 55 |
| M&M | Mahindra & Mahindra Ltd. | 20.6 | +18.8% | 52 |
| MARUTI | Maruti Suzuki India Ltd. | 28.3 | +14.4% | 31 |
| TMPV | Tata Motors Passenger Vehicles Ltd. | — | -1.1% | 16 |
Technical state
Current price
₹2,148.30
SMA 50
₹2,206.78
SMA 200
₹2,351.56
RSI (14)
44.5 (neutral)
From 52w high
-23.2%
1Y return
-21.4%
3M return
-20.9%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- high5-year earnings growth of -15% alongside FCF positive in only 2 of available years indicates sustained profit contraction and weak cash generation over the measurement period.
- highQuality score of 28 ranks 5th of 6 in the Auto peer group (peer median approximately 52–55); consistency score of 34 and ROE above 15% in only 3 of available years signal the weakest capital-return profile in the peer set.
- mediumPrice of ₹2,148 is below both the 50-DMA (₹2,207) and 200-DMA (₹2,352), with a 52-week drawdown of -23.2% and a 12-month decline of -21.4%. The 3-month decline of -20.9% indicates accelerating deterioration.
- mediumDebt-to-equity of 35.3 with a rising debt trend is elevated relative to the auto-ancillary segment; revenue grew only 6.9% over 5 years while earnings contracted 15% over the same span, compressing operating leverage.
- lowNews flow skews 4-negative vs 2-positive across 8 recent articles, with multiple reports citing FY26 profit down ~25% YoY, margin pressure, and an earnings miss — concentrated in the most recent reporting cycle.
Cross-section contradictions
- Trailing PE of 33.4 is the second-highest among peers (behind Eicher Motors at 36.1), yet BALKRISIND ranks last on quality score (28 vs peer median ~52) — a premium valuation multiple coexists with the weakest quality profile in the peer group.
- Forward PE compresses sharply to 21.5, implying consensus expects a significant earnings recovery, yet the 5-year earnings CAGR is -15% and FY26 profit reportedly fell 25% YoY — a notable divergence between near-term analyst earnings projections and the recent earnings trajectory.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days