Yes, they are “rock steady” in brand building only. My eyes were tired by seeing BKT logo in almost every IPL team jersey. Few started making meme on that.
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Not looking at 1-2 quarters… there market share is stagnant since last 5 years. You may check my previous comment Balkrishna Industries - #293 by meditate
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Correct. Industry doing well BKT share is same. Industry doing badly BKT share is same. At least this is the story last 5 years where they are not able to meaningfully differentiate themselves from competition. Lets hope things change FY23 onwards
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Balkrishna Industries Q2FY24 Concall Summary
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Kotak Daily 28-Nov-23.pdf (1.0 MB)
Kotak has retained the sell target on Balkrishna.
Valuations
What convinces me is the valuation comfort of the company is not favorable.
In the past, the PE has always peaked out around 40. At this point the PE is closer to 48 and PEG is nearing 7. The upside seems pretty limited. Also, technically closing in on previous high levels.
Business Outlook
The North America business which seems slow on recovery contributes only 17% of the business. Which means 83% should start working. I am a bit concerned, the tone of concall was still too cautious. Is there something missing ?
SoM Targets
Management has been speaking about achieving 10% SoM since a few years but there seems to be no clear strategy in terms of achieving the same.
Missing Guidance
Seems like a very general guidance of H2 to be better than H1.
Disc: Please do your own due diligence before taking any action. I have booked out on my positions based on the analysis above. Hence, it may be a biased viewpoint.
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You might be right though YOY we could see a big improvement and PE falling as last December quarter had poor results (eps 5.41).
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Yes. Completely agree with you Sidharth. This is just my thesis and markets have the power to prove it wrong.
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Logistics challenges at Red Sea transport channel now affecting big way to the export oriented companies. BKI is worried about that and based on con call, today market reacted negatively even though result is good.
Wait for correction in the fundamentally strong company getting affected due to supply chain disturbances to add/buy
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PE correction is happening much sharper after a prolonged time correction. A touch below 2100, its long-term support zone is more likely from where the stock gets more attractive again for long term positions.
Disc: Entered at current level and intend to add along the fall if it continues.
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Agree with your observation. A good set of numbers and price correction has made the PE correction aggressive.
In my opinion, all export oriented companies will continue derating till clarity on Red Sea operations is seen. BKT is primarily an export oriented company. Freight and Insurance costs will be a drag till they do not pass on the cost to customers.
Most of this impact will be felt in Q4’FY24 as the issue was raised E/Nov’23. So most of Q3 was reasonably stable. My plan is to wait and watch for Q4 results and then decide the way forward. Avoiding catching a falling knife. 
Disc: Please do your due diligence. Not an investment or sell advice.
Does an Increase in Natural rubber Price impact the margins of BKT?
Where does BKT source rubber from?