CMP ₹2,671 | FY25 PAT ₹1,628 Cr | EPS ₹84.23 | Revenue ₹10,947 Cr | EBITDA Margin 24% | P/E ~31.7x
📌 At a Glance
Balkrishna Industries — India’s off-highway tyre king — just rolled out its FY25 results, and here’s the short take:
- 🔼 FY25 Revenue up 12.3% YoY
- 🔼 Net Profit up 13.3% YoY
- 🧾 EPS ₹84.23 vs ₹74.36 last year
- ❌ But Q4 PAT down 25% YoY (₹362 Cr vs ₹480 Cr)
- 💸 Final Dividend: ₹4/share (already paid interim ₹4, total ₹8/share)
- 📉 Stock still trades at P/E ~31.7x — not cheap for tyres, but Elxsi-style margins make it sticky.
📊 Quarterly Breakdown
| Quarter | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) |
|---|---|---|---|
| Q4 FY25 | 2,746.6 | 362.1 | 18.73 |
| Q3 FY25 | 2,540.6 | 439.4 | 22.73 |
| Q4 FY24 | 2,673.1 | 480.9 | 24.87 |
➡️ PAT fell QoQ and YoY. Margins under pressure. Rubber price moves? Freight? Or just post-festive season fatigue?
📅 FY25 vs FY24 (Standalone)
| Metric | FY25 (₹ Cr) | FY24 (₹ Cr) | Change |
|---|---|---|---|
| Revenue | 10,947.4 | 9,746.4 | 🔼 +12.3% |
| EBITDA | 2,632.5 | 2,299.1 | 🔼 +14.5% |
| Net Profit | 1,628.4 | 1,437.6 | 🔼 +13.3% |
| EPS | ₹84.23 | ₹74.36 | 🔼 +13.3% |
| Net Worth | ₹10,384 Cr | ₹8,862 Cr | 🔼 +17.1% |
| Debt | ₹387 Cr | ₹691 Cr | 🔽 -44.0% |
| Op. Cash Flow | ₹1,753 Cr | ₹2,052 Cr | 🔽 -14.6% |
| Capex | ₹1,480 Cr | ₹1,092 Cr | 🔼 +35.5% |
🧠 Capex up. Debt down. Earnings up. Yet Q4 felt like a tyre puncture.
🛞 Business Highlights
- Exports dominate: Over 80% revenue from global off-highway tyre sales
- End-user base: Agriculture, construction, mining, ATV
- Key geographies: Europe, North America, LATAM
- Currency & freight volatility = direct margin killers
- R&D ramping up with new radial tech for tractors & industrial segments
So basically — it’s MRF for tractors, with less brand value but way better global diversification.
🧠 EduInvesting Take: “This is a tyre stock with a mutual fund’s P/E.”
Let’s be real:
- 👌 Full-year numbers are strong
- ❌ But Q4 decline = can’t ignore
- 📉 If FY26 opens soft, this CMP may start feeling wobbly
- ✅ That said, debt-free, cash-generating, high-margin tyre biz is rare AF
And so — the market gives it a premium… like a Michelin-star dish made of rubber.
⚠️ Risks & Red Flags
- 🛢️ Raw material cost surge (rubber, carbon black)
- 💵 Forex fluctuations — company earns in USD, pays costs in INR
- 🛑 Freight rates & global slowdown = export volatility
- 💸 Valuation stretched if earnings don’t grow fast
- 🚜 Demand tied to agriculture + construction machinery → cyclical
📈 Valuation Lens
- EPS = ₹84.23
- CMP = ₹2,671
- P/E = ~31.7x
➡️ That’s higher than Apollo Tyres (P/E ~16) and even MRF (~24x), but justified by:
- ✅ Clean balance sheet
- ✅ Global moat
- ✅ 20%+ ROE
- ✅ Better margins than domestic players
But still… not priced for growth miss.
🎯 Final EduVerdict: “Balkrishna isn’t selling tyres. It’s selling investor confidence — at premium tread.”
If they can:
- Maintain margin
- Avoid Q4-style PAT drops
- Execute on ₹1,500 Cr capex with 20% ROCE+
Then P/E ~30x is fine.
Otherwise? Expect rotation into cheaper rubber stories.
📢 Not a buy, not a sell. Just analysis with tread depth.
Author: Prashant Marathe
Date: May 23, 2025
Tags: Balkrishna Industries, BKT, Tyre Stocks, FY25 Results, EPS Growth, Global Exporters, Rubber Price Risk, EduInvesting, Clean Balance Sheet, High Margin Stocks
