>Balkrishna Industries Ltd - SKP - 23 12 08

Balkrishna Industries Ltd (BIL), world's premier manufacturer of pneumatic tyres for special applications was incorporated on November 20, 1961. It focuses on the production of off-highway tyres that includes agricultural, industry, material handling, forestry, lawn and garden, construction and earth moving tyres. The company operates mainly in the business segment of tyres which by virtue becomes its core business. It's other businesses are fabric processing and paper manufacturing which has been transferred to its subsidiaries BKT Synthetic Ltd. and BKT Paper Mills Ltd.

At current market price of Rs. 174/-, the stock is trading at P/E 1.93x and EV/EBIDTA 2.30x of FY 11E earnings and EBIDTA respectively. We recommend accumulate rating at our target price of 237 (36% upside) in 18 months, it would trade at 2.6x FY11E earnings

Life is like a piano, white keys are happy moments and black keys are sad moments. But remember both keys are played together to give Sweet music in life...

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