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Balkrishna Industries Shares Plunge 10% Following Analyst Downgrades

Concerns over demand uncertainty and expansion into new tyre segments weigh heavily on stock performance.

Balkrishna Ind share slumps 10% as stock analysts cut targets on demand, biz foray
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Overview

  • Balkrishna Industries' stock fell 10.33% to Rs 2,385, marking a 15.82% decline year-to-date in 2025 and underperforming the BSE Auto index.
  • The company's Q4FY25 revenue exceeded Bloomberg estimates by 4%, but EBITDA margin of 24.8% fell slightly below the consensus of 25%.
  • Analysts downgraded the stock due to potential return on equity dilution from its entry into Premium Passenger Car Radial (PCR) and Truck and Bus Radial (TBR) segments.
  • Nomura revised its target price for the stock to Rs 3,242, citing medium-term potential but highlighting execution risks in new segments.
  • Motilal Oswal and Nirmal Bang adjusted earnings estimates and target prices, projecting challenges in demand recovery and successful segment expansion.