Rohitashya Thakuria

[Rohitashya Thakuria @Rohitashya]

Balkrishna Industries: Fixed Asset check 🛞

• Asset turnover: ~1.6x vs industry ~1.7x
• ₹6,800 Cr capex till FY29
• Avg. asset age: ~5 years
• Depreciation: ~7% of sales

A slowdown in capex + higher sales could improve asset turnover.

[Rohitashya Thakuria @Rohitashya]

How do you identify regulatory risk in a company?

I use 3 questions:

Can the regulator change how much I earn?
Can it stop me from operating?
Can I pass the impact on to customers?

Then ask: How much can each risk impact the company's financials?