Wednesday, December 20, 2006
BALKRISHNA IND
Balkrishna Ind is biggest player in OTR [off the road] Tyre segment, manufacturing tyres for Agri segment [tractor and lawn/garden machines] and Ind.&Construction segment [including earthmoving equipments]. Its present capacity is 72,000 MTs, which is being raised in stages to touch 1,00,000 MTs by June'07 and further to 1,50,000 by 2008. Almost 92-93% of the products of company are exported to Europe [55%], US and other [45%] countries. Now looking to the cooling off witnessed in key raw materials prices, and rising production, the H-2 of current year will show significant improvement in margins. The stock is available at less then 9X for 08 earnings, which looks very attractive for a Tyre company which is enjoying best margins in the industry and exporting more then 90% of products to developed markets. One can buy the stock around Rs 515 , with an stop loss of Rs 490 and look for a target of Rs 675 to 750 in medium term
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5 comments:
An update on eagle eye picks pls
Dear Asutosh,
I have been an ardent fan of your picks...Btw, any idea on the future of Cambridge Solutions formerly Scandent Solutions...The stock is trading between 100-138 for the last 6 months...
My average price is 138 only...Should I exit fully now or wait for some more appreciation ?
Any pointers would be highly appreciated.
Tons of thanks,
Dheeraj
hi dhiraj...sorry dont track this one tht closely...though cambridge seems to be running a bit of pressure due to its tappering margins.....keep a stoploss of 130 n continue holding the same...a good close above 140 might give a fresh upmove.....though fundamentally nothing much to talk about
Hi Ashu
I share dheeraj's opinion on your picks. Can you update them regularly like say once a week. I prefer them to your stock analysis which mostly goes over my head - I trust you to do the analysis and would rather just follow your picks!!!
Thanks Asutosh, your suggestion makes sense.
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