The timing appears opportune to go long in shares of Balkrishna Industries Limited as we anticipate another pick-up in the underlying trend.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths
● Its core activity has a significant growth potential and sales are expected to surge, according to Standard & Poor's' forecast. Indeed, those may increase by 53% by 2023.
● The group's high margin levels account for strong profits.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For the last week, the earnings per share forecast has been revised upwards. According to recent estimates, analysts give a positive overview of the stock
● The tendency within the weekly time frame is positive above the technical support level at 1162.65 INR
Weaknesses
● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● The group usually releases earnings worse than estimated.
● With an enterprise value anticipated at 5.62 times the sales for the current fiscal year, the company turns out to be overvalued.
● The company is not the most generous with respect to shareholders' compensation.
Balkrishna Industries Limited is an India-based company that is engaged in the business of manufacturing and selling of off-highway tires (OHT) in the specialist segments, such as agricultural, industrial and construction, earthmovers and port, mining, forestry, lawn and garden and all-terrain vehicles (ATV). The Companyâs agricultural applications include tractor, harvester, implements, telehandler, agro truck, go-kart, golf kart, mower, fertilizer truck, compact loader, backhoe loader, mobile home, and universal vehicle. Its industrial applications include compactor, container handler, reach stacker, excavator, forklift, skid steer, grader, straddle carrier, RTG crane, mobile crane, terminal tractor, tow tractor, light truck, road rail equipment, trailer, and military truck. Its off the road applications include articulated dump truck, rigid dump truck, load haul dump, low profile dump truck, underground mining vehicle, and scraper.