CMP: 163

Balkrishna Industries Ltd. manufactures automobile tires and tubes. The Company also manufactures different varieties of paper & paper boards and processes synthetic textiles.

Balkrishna Industries is a good bet in budding mid-cap space. Its currently trading at a P/E of less than 8 with decent dividend yields of close to 1% in the last 12 months. It runs at a debt of 607 Crores with 11 Crores cash in hand. This puts debt to profits ratio at less than 3, which is still a little high, but relative much better than its competitors. Revenues have risen from 878 Crores to 2003 Crores in the last 5 years. Profits have risen from 83 Crores to 186 Crores in the last 5 years. NPM has stayed stable at 9% over 5 years. FY2012 has been good so far in-terms of growth. Buy and hold for long term gains.