Statistical Analysis of BKT Tires

For
Statistics for decision making pg-14

Project submitted to

GL Bajaj Institute of Management & Research

As a partial fulfillment of full time

Post Graduate Diploma In Management ( PGDM )
Approved by AICTE, by Ministry of HRD

Guided Submitted
by by
Dr.Sharat Sharma Ankita Singh

PGDMG23186(SEC-F)
 Project Synopsis

In this Project we are going to find out how a stock is picked by the investor to invest his money. What
are the fundamentals they see while picking a stock and what they look into the company. And what
actually the companies do and what are the parameters to stock selection and how much that stock is
risky and the basic fundamental of the company.
 Project Report on Balkrishna Industries

COMPANY OVERVIEW

Balkrishna Industries Limited (BKT) is an Indian multinational tyre manufacturing company

based in Mumbai, India. Balkrishna Industries manufactures off-highway tyres used in specialist
segments like mining, earthmoving, agriculture, and gardening in five factories located in
Aurangabad, Bhiwadi, Chopanki, Dombivali, and Bhuj. In 2013, it was ranked 41st among the
world’s tyre makers.[

History
Balkrishna Industries began operations in the year 1987 with the inauguration of its first off-
highway tyre manufacturing facility in Aurangabad. Subsequent growth in business allowed the
company to open new facilities in Dubai (2002) and Chopanaki (2006). It also diversified its
product line by introducing tyres for ATV, earthmoving and gardening vehicles.

Operations

Balkrishna Industries is currently an OEM vendor for heavy equipment manufacturers like JCB,
John Deere, and CNH Industrial. In 2014, BKT held a 8% market share of the global off-the-road
tyre segment.Balkrishna Industries predominantly caters to the replacement market in North
America and Europe. Its North American office is located in Akron, Ohio, with one warehouse in
Wando, South Carolina. About 80 percent of Balkrishna Industries' business in the United States
is in the farm market.
 Levered/Unlevered Beta of Balkrishna Industries Limited.
Beta is a statistical measure that compares the volatility of a stock against the volatility of the
broader market, which is typically measured by a reference market index. Since the market is
the benchmark, the market's beta is always 1. When a stock has a beta greater than 1, it means
the stock is expected to increase by more than the market in up markets and decrease more
than the market in down markets. Conversely, a stock with a beta lower than 1 is expected to
rise less than the market when the market is moving up , but fall less than the market when the
market is moving down. Despite being rare, a stock may have a negative beta, which means the
stock moves opposite the general market trend.

Balkrishna Industries Limited shows a Beta of 0.42.

This is significantly lower than 1. The volatility of Balkrishna Industries Limited according to this
measure is significantly lower than the market volatility.

Price-to-Earnings (P/E) Ratio?

The price-to-earnings ratio is the ratio for valuing a company that measures its
current share price relative to its earnings per share (EPS). The price-to-earnings ratio
is also sometimes known as the price multiple or the earnings multiple.

P/E ratios are used by investors and analysts to determine the relative value of a
company's shares in an apples-to-apples comparison to others in the same sector. It
can also be used to compare a company against its own historical record or to
compare aggregate markets against one another or over time.

/E may be estimated on a trailing (backward-looking) or forward (projected) basis.

In the upper table The PE Ratio of BKT tiers are 45.30. And earnings per share are 54.71.
 PB Chart of BKT Tires. Of 6 months

PE Chart of BKT Tires for 5 years

Price chart of BKT Tyres.

PROFIT GROWTH OF BKT TYRES-1 YEAR-23.53%,,3 YEAR-4.51%,5 YEAR7.85%

Sales growth of bkt tyres for 5 Years.
1 YEAR18.68%, 3 YEAR27.06%,5 YEAR17.14%.

ROE%- 1 YEAR14.86%, 3 YEAR19.21%,5 YEAR18.98%.

ROCE %-1 YEAR15.1%,3 YEAR21.23%,5 YEAR21.28%

 Bibliography
1. WWW.BKT TYRES .COM
2. Moneycontrol.com
3. NSE.COM