Edelweiss Securities has reiterated 'Buy' on Balkrishna Industries with target price of Rs 460 as against current market price (CMP) of Rs 504 in its reports.

Commenting on the investment rationale, Edelweiss said, ''Our recent visit to Balkrishna Industries' (BIL) Bhiwadi and Chopanki (Rajasthan) plants reaffirms our positive outlook on BIL's competitive position vis-a-vis peers. The mentioned facilities contribute 65% of company's turnover and are running at 70-75% plus capacity. BIL's strong focus on safety and quality control coupled with world-class R&D facilities and high labour productivity is continuously improving plant efficiency, which will lead to sustenance of high margins.

We are fairly convinced with innovation-led business and labour efficiency post visiting the facilities and interaction with the team. The large number of SKUs (wide product range) base of BIL at 2,000 plus with 100-150 getting added every year will act as a deterrent for new entrants.

We believe structurally the business will continue to post robust growth and margins riding rising radialisation and increasing OTR mix, further bolstered by Bhuj capacity expansion. Re-iterate 'Buy'.''

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