Balkrishna Industries Limited Fundamental Analysis (BSE: BALKRISIND.BO)
Balkrishna Industries Limited Fundamental Analysis (BSE: BALKRISIND.BO)
Balkrishna Industries Limited (BSE: BALKRISIND.BO) shows moderate financial fundamentals with a PE ratio of 31.26, profit margin of 11.31%, and ROE of 12.95%. The company generates $126.0B in annual revenue with strong year-over-year growth of 11.32%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BALKRISIND.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakBALKRISIND.BO struggles to generate sufficient returns from assets.
Valuation Score
WeakBALKRISIND.BO trades at a premium to fair value.
Growth Score
ExcellentBALKRISIND.BO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentBALKRISIND.BO maintains a strong and stable balance sheet.
Profitability Score
WeakBALKRISIND.BO struggles to sustain strong margins.
Key Financial Metrics
Is BALKRISIND.BO Expensive or Cheap?
P/E Ratio
BALKRISIND.BO trades at 31.26 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BALKRISIND.BO's PEG of 9.41 indicates potential overvaluation.
Price to Book
The market values Balkrishna Industries Limited at 3.82 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.62 times EBITDA. This signals the market has high growth expectations.
How Well Does BALKRISIND.BO Make Money?
Net Profit Margin
For every $100 in sales, Balkrishna Industries Limited keeps $11.31 as profit after all expenses.
Operating Margin
Core operations generate 14.61 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.95 in profit for every $100 of shareholder equity.
ROA
Balkrishna Industries Limited generates $6.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Balkrishna Industries Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Balkrishna Industries Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
BALKRISIND.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.26
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
9.41
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.001
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How BALKRISIND.BO Stacks Against Its Sector Peers
| Metric | BALKRISIND.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.26 | 24.94 | Worse (Expensive) |
| ROE | 12.95% | 965.00% | Weak |
| Net Margin | 11.31% | -2081.00% (disorted) | Strong |
| Debt/Equity | 0.52 | 0.71 | Strong (Low Leverage) |
| Current Ratio | 1.00 | 2.36 | Neutral |
| ROA | 6.89% | 364.00% | Weak |
BALKRISIND.BO outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Balkrishna Industries Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
120.20%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
72.46%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
50.38%
Industry Style: Cyclical, Growth, Discretionary
High Growth