X

JK Tyre & Industries Ltd. Stock Analysis

Small Cap
Evaluated by 2340 users | BSE: 530007 | NSE: JKTYRE |
Tyres & Allied
JK Tyre was incorporated as a private limited company in West Bengal in February 14, 1951.  Until March 31, 1970, the company was engaged in the managing agency business. Thereafter, the company decided to undertake manufacturing activities and obtained a letter of intent in February 1972...

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
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 7.78%5.78%9.8%11.44%12.39%15.58%9.34%4.77%7.47%8.87%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 4,8305,4805,4315,9516,1255,8265,9796,4537,6106,095
Y-o-Y Gr. Rt.-13.5%-0.9%9.6%2.9%-4.9%2.6%7.9%17.9%-19.9%
Adjusted EPS (Rs.) 3.450.496.199.1411.4519.110.342.256.879.5
Y-o-Y Gr. Rt.--85.8%1163.3%47.7%25.3%66.8%-45.9%-78.2%205.3%38.3%
Book Value per Share (Rs.) 30.7330.6735.0640.4548.1362.5973.8172.581.0287.82
Adjusted Net Profit 70.81012718826043323551.1169234
Net Op. Cash Flow (Rs. Cr.) -21.4347-101563587815164495262891
Debt to Cash Flow from Ops -61.365.13-23.294.214.443.1520.597.0612.693.6
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
JK Tyre & Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 2.6%-0.1%0.6%-19.9%
Adjusted EPS 11.9%-3.7%-2.8%38.3%
Book Value per Share 12.412.868.4
Share Price 20.5% -6.8% -20.1% 13.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 10.051.4418.0123.626.7834.515.173.089.311.25
Operating Profit Margin (%) 6.015.18.9711.0112.2717.1812.517.639.5710.71
Net Profit Margin (%) 1.470.182.343.154.247.443.920.792.223.84
Debt to Equity 2.082.823.272.852.391.812.022.131.661.48
Working Capital Days 100113127129136144154166149194
Cash Conversion Cycle 27263445444359737094
Entity Percentage Holding
Promoters 56.23%
Institutions 4.53%
Non-Institutions 38.66%
Pledged *0.000.000.0028.8935.390.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of JK Tyre & Industries Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that JK Tyre & Industries Ltd. is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of JK Tyre & Industries Ltd.'s performance infers:

JK Tyre & Industries Ltd. earnings have declined by -3.7%, whereas share price has depreciated -6.8% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of JK Tyre & Industries Ltd. share prices over the last 10 years. Here is what we found out:

JK Tyre & Industries Ltd. share price has depreciated 8.2% annually over the past ten years.

JK Tyre was incorporated as a private limited company in West Bengal in February 14, 1951.  Until March 31, 1970, the company was engaged in the managing agency business. Thereafter, the company decided to undertake manufacturing activities and obtained a letter of intent in February 1972 for the manufacture of automobile tyres and tubes.

JK Tyre & Industries is the flagship company under the umbrella of JK Organisation. JK Tyre and Industries is a mega corporate entity that is

JK Tyre was incorporated as a private limited company in West Bengal in February 14, 1951.  Until March 31, 1970, the company was engaged in the managing agency business. Thereafter, the company decided to undertake manufacturing activities and obtained a letter of intent in February 1972 for the manufacture of automobile tyres and tubes.

JK Tyre & Industries is the flagship company under the umbrella of JK Organisation. JK Tyre and Industries is a mega corporate entity that is emblematic of excellence, diversification and pioneering new technologies. A part of JK Organization which ranks among the top private groups private groups in India, Jk Tyre and Industries is committed to self reliance and follows an ethic that views customer satisfaction as an index of achievement. JK Tyre is the pioneer for Steel Radial technology in India.

Over the years, the company has expanded and diversified its business portfolio. It has developed into a multi product, multi-location corporate entity. The company produces and sells tyres and tubes under the brand name 'JK Tyre' for Truck, Buses, Passenger Cars, Jeeps, Light Commercial Vehicles, Multi Utility Vehicles and Tractors

The company’s three plants are located in Rajasthan, Madhya Pradesh and Karnataka, JK Tyre is the largest manufacturer of truck and bus tyres in India. The truck and bus tyres produced account for nearly 74% of the total tyre business in India, thus giving JK Tyre an undisputed position. Additionally, JK Tyre is the only manufacturer of truck/ bus steel radial tyres, and the second largest manufacturer of 4-wheeler tyres in the country.

J.K. Industries acquired Vikrant Tyres, Mysore in 1997. J.K. Industries and Vikrant Tyres are the only tyre companies in India to have received all three ISO 9001, QS 9000 and ISO 14001 certificates.

The company has a technical collaboration with Continental AG, Germany, which is among the top five tyre manufacturers in the world to keep pace with latest technological developments. To stay at the forefront of technological advancements a state of art Research & Development Centre, HASETRI, was set up, which remains the nerve centre for providing cutting edge technology. In a short span of time it has emerged as the 17th largest tyre manufacturer in the world an achievement in itself.

The company design tyres for the vehicles using the latest tools & techniques which enable us to judge and eliminate chances of failure at the drawing board stage only. The Radials are manufactured in an air conditioned plant equipped with the finest machines so that you get consistently good quality.

Product range of the company includes:

Passenger Car Tyre

  • Ultima-XPS
  • Tornado
  • Rally
  • Ultima Sport
  • Ultima Royale
  • Vectra

 LCV Tyre

  • Steel King
  • Brute 4x4
  • Brute_LT
  • Elanzo

LCV/Truck Tyre

  • Jetsteel JDH

Milestones:

  • 1933 - First in India to manufacture Calico Prints- Juggilal Kamlapat Cotton Spinning and Weaving Mills Co. Ltd., Kanpur.
  • 1940 - First in India to manufacture steel Bailing Hoops for jute and cotton and to make the country self sufficient by meeting the entire demand-J.K. Iron & Steel Co. Ltd., Kanpur.
  • 1944 - First in India to produce Aluminium virgin Metal from Indian Bauxite-Aluminium Corporation of India Ltd., Jaykaynagar.
  • 1949 - First in India to manufacture Engineering files- J.K. Engineers'Files, Bombay.
  • 1959 - First in India to set up a continuous process Rayon Plant.
  • 1960 - First to manufacture a Hydraulically Operated Cane Crushing Mill for Khandsari Sugar Plant and completed 100 ton plant-J.K. Iron & Steel Co. Ltd., Kanpur.
  • 1961 - First in world to set up a plant for production of Hydrosulphite of soda by Sodium Amalgam Process- J.K. Chemicals Ltd., Bombay.
  • 1962 - First in India to produce Nylon-6 with its own polymerised raw material- J.K. Synthetics Ltd., Kota.
  • 1965 - First to produce Sodium Sulphoxylate Formaldehyde (Rangolite C of Formosul) in India - J.K. Chemicals Ltd., Bombay
  • 1968 - First to manufacture TV Sets in India- J.K. Electronics, Kanpur. First to manufacture Metallic Cops for Synthetic Filament yarn industries in India- Syntex tube works, Kanpur.
  • 1969 - First to manufacture Acrylic Fibres- J.K. Synthetics Ltd. Kota        
  • First to develop differentially Dyeable Nylon- J.K. Synthetics Ltd., Kota
  • 1973 - First in India to license Synthetic Fibre Technology to third party as well as the first to manufacture Synthetic Fibre Machinery Fibretech Engineers & Manufacturers, Dadri.
  • 1976 - First in India to produce steel belted Radial Tyres for passenger cars, trucks and buses- J.K. Tyre Plant, Kankroli.
  • 1980 - First in world to make Steel Belted Radial Tyres for three wheelers- J.K. Tyre Plant, Kankroli.
  • 1984 - First in India to produce white cement through dry process- J.K. White cement., Gotan.
  • 1985 - First in India to produce Cathonic Dyeable Polyester Fibre- J.K. Synthetics Ltd., Kota.
  • First in India to produce Nylon Tyre Cord based on Spin Draw Technology- J.K. Synthetics Ltd., Kota.
  • 1989 - First in India to produce magnetic tapes with cobalt technology J.K. magnetics, Surajpur.
  • 1991 - Banmore Tyre Plant (BTP) set-up with a capacity of 5.7 lacs tyres p.a.
  • 1992 - R & D center set-up at HASTERI.
  • 1994 - India's first T-Rated tyre launchedBanmore Tyre Plant (BTP) crossed 100 TPD.
  • 1995 - Mercedes Benz Launched on JK steel radials           
  • First tyre manufacturer in the world to get ISO 9001
  • 1996 - India's first dual contact high traction steel radial- aquasonic launched.           
  • Introduced steel wheels.
  • 1997 - Awarded the National Export Award for 96-97.           
  • Vikrant Tyres (VTL) acquired.           
  • India's first H rated tyre launched.           
  • Only Tyre manufacturer to get 'E' Mark certification.           
  • HASETRI became the first research institute in Asia to get ISO 9002.
  • 1998 - First tyre manufacturer in the world to get QS 9000.          
  • Awarded CAPEXIL's highest export award for 1997-98.
  • 1999 - Synergy with VTL in procurement, marketing and production flexibility.           
  • Completion of state of the art modernisation of truck radials.           
  • JK Tyres ranked 16th largest Tyre Company in the world.           
  •  ISA - 14000 accredition for environment & safety.
  • 2000 - JK introduced National Go-Karting Championships.
  • 2001 - Recieved CAPEXIL award.J.K. Industries recieved FOCUS LAC export award for the year 1999-2000.Commendation Certificate of CII Exim.IInd National Go-Karting Championships held.

Awards/Recognition:

  • JK Tyre is the largest exported tyre brand from India.
  • It was awarded the CAPEXIL’s Highest Export Award for 1997-97 by FIEO. It enjoys preferred premium brand status in Truck Bias market in USA and across many markets in Africa, Middle East and South East Asia.
  • ISO 9001, QS 9000 and ISO 14001 certified
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

Callback