JK Tyre & Industries Ltd Stock Analysis

BSE: 530007 | NSE: JKTYRE | Tyres & Allied | Small Cap

BSE Share Price May 20, 15:07
124.90 0.60 (0.48%)

DeciZen - Make an Informed Decision on JK Tyres & Inds.

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

FAQs

1. Is JK Tyre & Industries Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that JK Tyre & Industries Ltd is a below average quality company.

2. Is JK Tyre & Industries Ltd undervalued or overvalued?

The key valuation ratios of JK Tyre & Industries Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is JK Tyre & Industries Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of JK Tyre & Industries Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of JK Tyres & Inds.:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
JK Tyre & Industries Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 5.8%9.8%11.4%12.4%15.6%9.3%4.8%7.5%8.9%8.5%-
Value Creation Index -0.6-0.3-0.2-0.10.1-0.3-0.7-0.5-0.4-0.4-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 5,4805,4315,9516,1255,8265,9796,4537,6106,0936,1357,892
YoY Gr. Rt. %--0.9%9.6%2.9%-4.9%2.6%7.9%17.9%-19.9%0.7%-
Adj EPS 0.56.29.111.519.110.32.36.99.59.811.9
YoY Gr. Rt. %-1163.3%47.7%25.3%66.8%-45.9%-78.2%205.3%38.3%3.3%-
BVPS (₹) 30.735.140.548.162.673.872.58187.897.4101.6
Adj Net Profit 1012718826043323551.1169234242294
Cash Flow from Ops. 347-1015635878151644952627831,253-
Debt/CF from Ops. 5.1-23.34.24.43.220.67.112.74.11.9-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 1.3%1%-1.7%0.7%
Adj EPS 39.5%-12.5%63.4%3.3%
BVPS 13.79.310.310.9
Share Price 23.1% -6.5% 15.5% -0.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 1.41823.626.834.515.23.19.311.310.612
Op. Profit Mgn % 5.191112.317.212.57.69.610.713.911
Net Profit Mgn % 0.22.33.24.27.43.90.82.23.83.93.7
Debt to Equity 2.83.32.92.41.822.11.71.51-
Working Cap Days 1131271291361441541661491941850
Cash Conv. Cycle 263445444359737095760

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 12.00%

Net Profit is growing at healthy rate in last 3 years 63.37%

Debt to equity has declined versus last 3 years average to 0.97

Sales growth is good in last 4 quarters at 54.88%

Sales growth has been subdued in last 3 years -1.67%

Latest Financials - JK Tyre & Industries Ltd.

Standalone Consolidated
TTM EPS (₹) 11.9 14.6
TTM Sales (₹ Cr.) 7,892 11,598
BVPS (₹.) 101.6 112.8
Reserves (₹ Cr.) 2,453 2,740
P/BV 1.22 1.11
PE 10.41 8.55
From the Market
52 Week Low / High (₹) 98.00 / 171.60
All Time Low / High (₹) 2.56 / 192.95
Market Cap (₹ Cr.) 3,061
Equity (₹ Cr.) 49.3
Face Value (₹) 2
Industry PE 33.5

Management X-Ray of JK Tyres & Inds. :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About JK Tyre & Industries Ltd

The flagship company of JK Organisation, JK Tyre & Industries Limited is one of India’s foremost tyre manufacturers and is also amongst the top 25 manufacturers in the world. The company offers a wide range of products catering to diverse business segments in the automobile industry. The company is also respected as one of ‘greenest’ tyre companies in the world, especially in the area of raw water consumption per unit of production, green-house gas emissions and energy consumption.

For the past few decades, the company has been at the forefront in driving innovation and excellence in the tyre industry through introduction of ground-breaking technologies and products that cater to diverse business segments in the automobile industry. Pioneers of radial technology, the company produced the first radial tyre in 1977 and is currently the market leader in Truck Bus Radial segment. In 2019, the company achieved a remarkable feat by entering the coveted Limca Book of Records with the country’s largest off-the-road tyre - VEM 045. The company provides end-to-end solutions across segments of passenger vehicles, commercial vehicles, farming, Off-the-Road and two & three-wheelers.

JK Tyre’s unwavering commitment towards innovation is reflected through the concerted efforts at its state-of-the-art global research and technology centre – the Raghupati Singhania Centre of Excellence - in Mysore. The Centre houses some of the world’s finest technologies and techniques, thereby, adding to the larger efforts of the company to put India on the global innovation map. The Hari Shankar Singhania Elastomer and Tyre Research Institute (HASETRI) - which fulfils need for globally competitive technologies for tyres and polymers and the JK Tyre Tech Centre, a hub for new product development catering to current and emerging needs of customers.

Business area of the company

The company is engaged in the manufacture and marketing of automotive tyres, tubes and flaps. The Company’s tyre products comprise Truck/Bus Radial & Bias , Passenger car radials, 2/3 wheeler tyres, LCV & SCV Bias & Radial, Off-Highway Tyres (OTR and Farm), as well as speciality tyres for Racing, Military/ Defence, Industrial and Farm applications.

Awards

2009-10:

  • CII Energy Management Award 2009.
  • Golden Peacock Environment Award, 2009.
  • Golden Peacock National Quality Award.
  • Capexil Top Export Award for the year 2009.
  • Export Excellence Award, 2009, Federation of Karnataka, Chambers of Commerce & Industry.

2012-13:

  • ‘Greentech Environment ‘Gold’ Award’ in Rubber Sector.
  • Award for ‘Water Efficiency Unit’ by CII.
  • Award for Organization with Innovative HR Practices from Asia Pacific HRM Congress.

2013-14:

  • Gold award for Quality Circle in GCCQC 2013 by Quality Circle Forum of India.
  • Manufacturing Excellence Award for Reducing Cost and High Quality Standard by World Brand Congress.
  • ‘Golden Peacock Award’ for HR Excellence for adopting best HR Practices & innovative strategies in business at the Global Convention, London, UK.
  • ‘Greentech Environment ‘Gold’ Award’ in Rubber Sector.

2014-15:

  • Asia’s Most Promising Brand 2014 by World Consulting and Research Council (WCRC).
  • Greentech Environment Award 2015 - Gold Category.
  • General Motors Quality Excellence Award 2014 for Exceptional Quality Performance.
  • IEI Industry Excellence Award 2014 for Business Excellence and Industry Practices.

2015-16:

  • Ranked No.1 in ‘Customer Satisfaction with Original Tyre’ by JD Power Asia Pacific Study 2015.
  • The ‘Brand of the Year’ award by the World Branding Forum, a global non-profit organization dedicated to advancing branding standards.
  • The ‘National Energy Conservation’ award 2015, in the tyre sector (Chennai plant) by the Ministry of Power, Government of India.
  • The TPM Consistency award for ‘Manufacturing Excellence’ at the Mysuru plant.

2016-17:

  • Awarded ‘Super Brand’ for 2016-17 by Super Brand Council of India for six times consecutively, since 2004.
  • FICCI Corporate Social Responsibility Award 2015-16 in recognition of commendable work done as a socially responsible company.
  • CII National HR Excellence Award, 2016 for significant achievement in HR excellence.
  • Platinum Category Award, 2016 by Indian Green Building Council (IGBC) for the Chennai tyre plant.

2017-18:

  • Certified as Great Place to Work for the year 2018.
  • Best Supplier Quality Excellence Award 2016 from General Motors.
  • National Award for Excellence in Energy Management 2017.
  • UCCI PP Singhal Excellence Award in CSR - Large Enterprises Category 2018.

2018-19:

  • Awarded at ‘National Water Awards for Excellence in Water Management 2018’ by Confederation of Indian Industries (CII) as ‘Noteworthy Project in Water Management’ under ‘Beyond the fence’ category.
  • Awarded at UCCI Excellence Award 2019 for outstanding achievement in the Corporate Social Responsibility category.
  • 7th ACEF Asian Award for Excellence in CSR, 2018 for sustainable community development.

2019-20:

• Great Place to Work: Recognition of a high trust and high performance culture.
• Frost & Sullivan and Teri Sustainability 4.0 Award: For Vikrant Tyre Plant (Mysuru) for commitment towards environment and sustainability.
• 5 Exhibit Innovative Tech Award 2019: Awarded the Editor’s Choice Innovative Tech Award 2019 for Treel.
• ICONIC IDC Insights Awards 2019.

Milestones

  • 1976: First tyre plant commissioned in Kankroli, Rajasthan.
  • 1991: Second tyre plant commissioned in Banmore, Madhya Pradesh.
  • 1997: Acquired Vikrant Tyres, Mysuru.
  • 1999: Launched allsteel truck radial tyres in Mysuru.
  • 2008: Acquired Tornel plant in Mexico.
  • 2010: Commissioned a new OTR plant in Mysuru.
  • 2011: Launched ‘New Jet Xtra’, a Truck Tyre for rear wheel fitment.
  • 2012: Inaugurates its Steel Wheels Showroom in Allahabad.
  • 2012: Inaugurates state-of-the-art Steel Wheels Showroom in the National Capital.
  • 2012: Inaugurates its largest Truck Wheels Centre in Vijayawada.
  • 2012: Commissioned a greenfield plant in Chennai.
  • 2013: Launches Fix-a-tyre, India’s first On-Road Tyre Assistance Service to Chennai.
  • 2013: Inaugurates its exclusive Truck Wheels Centre in the Puducherry.
  • 2016: Acquired Cavendish Industries.
  • 2017: Ties up with Suzuki.
  • 2017: Strengthens presence in two-wheeler tyres with BLAZE.
  • 2019: Launched the next generation of fuel-efficient tyres - the XF Series.
  • 2019: Launch of TREEL Sensors, a one of a kind technology-based tool geared towards smart monitoring and maintenance of tyres.
  • 2019: Strengthens presence in Gujarat:Opens 5th XpressWheel with modern FARM Tyres Facilities in Deesa.
  • 2020: Launches smart range of tyres on Amazon.in.
  • 2021: Ties-up with Hyundai Motor India to drive growth in the OEM segment - Becomes Tyre Partner for top-end variants of Hyundai Creta.
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