Balkrishna Ind's Rs 1,900 cr capex plan sparks profit taking; stock down 8%

With 9MFY21 volumes of approximately 159,130 MT, the management increased guidance for FY21 and expects to end FY21 with a sales volume of 215,000-220,000 MT

Shares of Balkrishna Industries slipped 8 per cent to Rs 1,700 on the BSE in Tuesday's intra-day trade as investors booked profit after the company announced capital expenditure (capex) plan of up to Rs 1,900 crore, which will be funded by internal accruals and debt, if required.

The stock of auto tyres and rubber products has corrected 10 per cent from its record high level of Rs 1,885 touched in intra-day trade today. At 10:45 am, it was trading 7 per cent lower at Rs 1,719 as compared to a 0.41 per cent risen in the S&P BSE Sensex.

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