Balkrishna Industries, a prominent player in the Automobile Components industry according to InvestingPro Tips, is expecting a slight year-on-year volume decrease in the fiscal year 2023-24, according to recent forecasts. These predictions align with analysts' projected 1.5% decline for the same period. On the other hand, Morgan Stanley (NYSE:MS) anticipates an 8% increase in the company's third quarter EBITDA, which would surpass current estimates.
The company, which has been profitable over the last twelve months and has seen a large price uptick over the last six months as per InvestingPro Tips, has announced an increase in its capital expenditure from Rs 600 crore to Rs 900 crore. This move is aimed at enhancing mould manufacturing capacity. Despite this, Nomura has issued a "reduce" call on Balkrishna Industries' shares, setting a target of Rs 2,152 per share.
Balkrishna Industries' second quarter EBITDA is expected to meet forecasts, partially due to inventory from June 2023 that remained unshipped due to Cyclone Biparjoy. The company, which operates with a moderate level of debt and whose cash flows can sufficiently cover interest payments according to InvestingPro Tips, projects a stable path leading to an improved second half in fiscal year 2024. The company reported a 2.4% YoY growth in the first quarter and a 17.7% growth for fiscal year 2023, with shares valued at Rs 2,553.3.
In other news, Unilever (LON:ULVR), the world's third largest advertiser, managed to achieve 9% sales growth and a 0.5% increase in underlying profits in 2022 amid peak inflation and heightened competition. This was achieved despite a 2.1% dip in volume sales. The company increased its brand investment by €500m in constant currencies.
Unilever's CFO Graeme Pitkethly attributed their resilience to strong brand equity and anticipates continued pricing pressures despite lower input costs. He also highlighted the impact of Europe's proximity to Ukraine and energy price fluctuations on consumer behavior, leading to increased price elasticity and private label market share gains. As part of their strategy to deliver seamless consumer experiences, outgoing CEO Alan Jope announced the creation of 29 digital marketing, media, and e-commerce hubs. For more insights and tips like these, check out InvestingPro's comprehensive guide here.
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