Revenue distribution by sectors:

• Agricultural tires: approx. 60%
• Industrial tires: approx. 25%
• Construction and mining tires: approx. 15%

TOP 3 markets and their percentage shares:

• Europe: approx. 50%
• North America: approx. 25%
• India: approx. 15%

Balkrishna Industries Limited generates the majority of its revenue from the production of specialty tires, with a focus on agricultural tires. Europe is the largest market for the company, driven by strong demand for high-quality specialty tires in this region.

North America and India follow as important markets, with North America benefiting from demand for tires for construction and agricultural machinery. In India, the company benefits from the growing agriculture and infrastructure development.

Production Sites:

• India: Rajasthan, Maharashtra, Gujarat

Balkrishna Industries Limited mainly produces its products in India. The main production facilities are located in the states of Rajasthan, Maharashtra, and Gujarat. These sites are strategically chosen to efficiently serve both domestic and international demand. The company is known for manufacturing off-highway tires used in various sectors such as agriculture, construction, and industry.

Revenue growth: 10% (estimated for 2025 based on past trends)

Investment in research and development: 5% of revenue (2024)

Balkrishna Industries Limited pursues a growth strategy focusing on several core areas. A key component is the continuous investment in research and development to develop innovative and high-quality tire products. These investments account for about 5% of revenue and aim to expand the product range and secure market leadership in specialized segments.

Furthermore, the company is pursuing geographical expansion, particularly in high-growth markets such as North America and Europe. These markets offer significant opportunities to increase market share and boost revenue.

Another strategic focus is on enhancing production capacities and efficiency. By leveraging modern technologies and optimizing the supply chain, Balkrishna Industries aims to reduce operating costs and improve margins.

In summary, Balkrishna Industries Limited aims for sustainable growth through innovation, geographical expansion, and operational efficiency.

Main raw materials: Natural rubber, synthetic rubber, carbon black, chemicals

Main importing countries:

• Natural rubber: Thailand, Indonesia, Malaysia
• Synthetic rubber: USA, Europe
• Carbon black: China, Russia
• Chemicals: Germany, Japan

Balkrishna Industries Limited, a leading manufacturer of off-highway tires, imports a variety of raw materials essential for tire production. Natural rubber, the main component, is mainly sourced from Southeast Asia, as this region is a global leader in rubber production. Synthetic rubber is imported from the USA and Europe, where advanced petrochemical plants are located. Carbon black, an important filler, is sourced from China and Russia, while specialized chemicals are imported from industrialized countries such as Germany and Japan, which have highly developed chemical industries.

Market share in the Off-Highway tire market: approximately 6% (2024)
EBITDA margin: 27% (2024)
R&D expenses: 2.5% of revenue (2024)

Balkrishna Industries Limited (BKT) has established itself as one of the leading manufacturers in the Off-Highway tire market. The company benefits from a diversified product portfolio that is strongly present in various niche markets such as agriculture, construction, and mining.

A key competitive advantage of BKT is its high EBITDA margin of 27%, which is attributed to efficient production processes and cost-effective manufacturing in India. This margin is above the industry average, indicating strong operational efficiency.

Furthermore, BKT continuously invests in research and development, accounting for approximately 2.5% of revenue. These investments enable the company to develop innovative products and adapt to changing market requirements, further strengthening its competitive position.

In summary, Balkrishna Industries possesses a significant competitive advantage in the Off-Highway tire market through its strong market position, efficient production, and continuous innovation.

Institutional Investor Share: approximately 18% (estimate based on 2023 data)

Insider Buys/Sells: No significant transactions in the last year (2024)

Balkrishna Industries Limited has a relatively stable institutional investor share, which has been around 18% in recent years. This indicates a certain level of confidence from institutional investors in the company's long-term performance.

In 2024, there were no significant insider transactions, which could suggest a stable confidence from management in the current company strategy. Such information is important for investors to understand the internal assessment of the company's development.

Market share of Balkrishna Industries Limited: 6% (estimated, 2025)

Top competitors and their market shares:

1. Michelin: 15%
2. Bridgestone: 14%
3. Goodyear: 12%
4. Continental: 11%
5. Pirelli: 10%
6. Yokohama: 8%
7. Balkrishna Industries Limited: 6%
8. Hankook: 5%
9. Sumitomo Rubber Industries: 4%
10. Apollo Tyres: 3%

Moat of Balkrishna Industries Limited:

Balkrishna Industries Limited (BKT) has built a solid reputation in the Off-Highway Tire (OHT) sector, creating a certain moat. The focus on niche markets such as agriculture, construction, and industry allows BKT to offer specialized products not covered by all major competitors. This gives the company an advantage in specific segments with less competition.

However, larger competitors like Michelin and Bridgestone have stronger moats in the form of global brand recognition, extensive research and development resources, and a broader product portfolio that also includes the passenger and commercial vehicle tire market. These factors enable them to achieve greater market presence and economies of scale.

In summary, BKT has a significant advantage in its niche markets, but the moats of larger competitors in the overall tire market are more pronounced.

Revenue Growth: 10.5% (2024) EBITDA Margin: 28.2% (2024) Debt Ratio: 0.4 (2024)

Balkrishna Industries Limited recorded a revenue growth of 10.5% in 2024, driven by strong demand in its core markets. The EBITDA margin of 28.2% indicates an efficient cost structure and strong operational performance.

The debt ratio of 0.4 suggests solid financial stability, providing the company with flexibility for future investments and growth opportunities. These metrics support a positive business outlook and could make the stock an attractive investment, especially for investors focusing on long-term growth.

However, it is important to also consider external factors such as market conditions, commodity prices, and geopolitical developments that could impact the business environment. A comprehensive analysis of these factors should be part of the investment decision.

Dividend Yield: 1.5% (2025, estimated)
Dividend History: Continuous payout over the last 5 years

Balkrishna Industries Limited has regularly distributed dividends to its shareholders in recent years. The dividend yield is currently estimated at 1.5%, indicating a moderate payout policy.

The company has a solid history of dividend payments, indicating a reliable payout. The continuous dividend policy reflects the stable financial health and cash flow of the company. Analysts expect Balkrishna Industries to maintain its dividend policy unless significant economic changes occur.