Shares of Balkrishna Industries rose nearly 1 percent in intraday trade on July 21, following news that HDFC Mutual Fund had increased its stake in the company to 7.16 percent, up from 5.02 percent earlier. The move was seen as a positive signal by investors, reflecting HDFC MF’s reinforced confidence in the long-term potential of the tyre manufacturer.
According to regulatory disclosures, HDFC Mutual Fund increased its holding by 2.14 percent, raising its total shareholding in the company to 1,38,34,445 equity shares from the previous 97,05,222 shares. The acquisition was completed via open market transactions and disclosed as of July 17, 2025.
The purchase was made through various schemes managed by HDFC Mutual Fund and executed under HDFC Trustee Company Ltd, acting on behalf of its numerous mutual fund schemes. Among the participating schemes are the HDFC Mid Cap Opportunities Fund, HDFC Flexi Cap Fund, HDFC Balanced Advantage Fund, HDFC Large and Mid Cap Fund, and HDFC’s sectoral and index-based funds, including the Nifty 50 benchmark fund.
This diversified allocation across multiple schemes indicates a collective conviction among HDFC MF’s fund managers about the strategic potential of Balkrishna Industries, particularly in its niche segment of off-highway tyres catering to agricultural, industrial, and construction equipment.
The latest stake hike comes after HDFC MF’s last reported holding on December 20, 2024, when its total ownership stood at 5.02 percent. At present, Balkrishna Industries has a paid-up capital of ₹38.66 crore, comprising 19.33 crore equity shares of ₹2 each.
Stock Reaction
Following the announcement, shares of Balkrishna Industries climbed 0.8 percent to hit the day’s high of ₹2,769.40. The stock, however, continues to trade nearly 18 percent below its 52-week high of ₹3,375.40, touched in August 2024.
On the downside, the stock had marked its 52-week low of ₹2,157.20 in April 2025. Despite recent volatility, July has seen a sharp rebound, with the stock rallying 13 percent month-to-date, suggesting renewed investor interest possibly triggered by institutional accumulation.
Over the last one year, the stock has declined 12.5 percent, reflecting broader sectoral pressures and cyclicality in the off-highway tyre market. Monthly performance has been mixed — down 1 percent in June, 7.5 percent in May, up 4.7 percent in April, down 2.3 percent in March, and deeper corrections of 5.6 percent in February and 5 percent in January.
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