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Balkrishna Industries Ltd BUY TECHNICAL
CMP: `1550 (As on 1st June 2017)
Buy: `1550-1500 PICK
Target Price: `1690-1740
Stop-Loss: `1440 Balkrishna Industries Limited is mainly engaged
Balkrishna Industries Ltd in the business of manufacturing and selling of
tyres. It focuses on the production of a range
4 ARIHANT CAPITAL ยก JUNE 2017 of off-highway tyres that include agricultural,
industry, material handling, forestry, lawn and
garden, construction and earth moving tyres. Over
95% of the tyre production is exported under the
BKT brand, with the main export markets being
countries in Western Europe, North America
and Australasia including original equipment
manufacturers. In the domestic market, the
company supplies to all the major construction
equipment manufacturers and has a presence in
the replacement market of the road construction
sector. The company exports its products
to approximately 130 countries worldwide
through a network of national distributors. Its
products include AGRIMAX RT 855, PL 801,
EARTHMAX SR 41, EM 934, AGRIMAX TERIS
and EARTHMAX SR 30, among others.
Technical Outlook:
On the weekly chart, the stock is in a steady
uptrend. At present the momentum indicators are
gaining strength. This suggests upside momentum
in the counter.
Hence we recommend buying in stock at Rs 1550
or on a decline up to Rs 1500 with a stop loss of
Rs 1440 for a target of Rs 1690-1740 levels.
