Live Webinar on "How to Invest successfully to reach goals without losing sleep" Sign up for Live Webinar
investing succesffuly to reach your goals investing succesffuly to reach your goals
X

JK Tyre & Industries Ltd Stock Analysis

Small Cap
Evaluated by 2554 users | BSE: 530007 | NSE: JKTYRE |
Tyres & Allied

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...

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'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Capital Employed 5.78%9.8%11.44%12.39%15.58%9.34%4.77%7.47%8.87%8.47%-
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 5,4805,4315,9516,1255,8265,9796,4537,6106,0936,1357,067
Y-o-Y Gr. Rt.--0.9%9.6%2.9%-4.9%2.6%7.9%17.9%-19.9%0.7%-
Adjusted EPS (Rs.) 0.496.199.1411.4519.110.342.256.879.59.8115.26
Y-o-Y Gr. Rt.-1163.3%47.7%25.3%66.8%-45.9%-78.2%205.3%38.3%3.3%-
Book Value per Share (Rs.) 30.6735.0640.4548.1362.5973.8172.581.0287.8297.499.21
Adjusted Net Profit 1012718826043323551.1169234242376
Net Op. Cash Flow (Rs. Cr.) 347-1015635878151644952627831,253-
Debt to Cash Flow from Ops 5.13-23.294.214.443.1520.597.0612.694.11.86-
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 1.3%1%-1.7%0.7%
Adjusted EPS 39.5%-12.5%63.4%3.3%
Book Value per Share 13.79.310.310.9
Share Price 23.7% 0.2% 12.8% 156%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity (%) 1.4418.0123.626.7834.515.173.089.311.2510.5915.52
Operating Profit Margin (%) 5.18.9711.0112.2717.1812.517.639.5710.6713.8814.25
Net Profit Margin (%) 0.182.343.154.247.443.920.792.223.843.945.32
Debt to Equity 2.823.272.852.391.812.022.131.661.480.97-
Working Capital Days 113127129136144154166149194185-
Cash Conversion Cycle 26344544435973709576-
Loading price chart...
Entity Percentage Holding
Promoters 56.23%
Institutions 7.64%
Non-Institutions 36.13%
Pledged *28.8935.390.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Past 10 year’s financial track record indicates that that JK Tyre & Industries Ltd is a below average quality company.

JK Tyre & Industries Ltd's earnings have declined by -12.5%, whereas share price has appreciated 0.2% CAGR over the past five years, indicating the company’s share price is likely overvalued. However, for specific investment actions please consult your investment advisor.

JK Tyre & Industries Ltd share price has appreciated 24.9% annually (CAGR) over the past ten years.

Past 10 years financial track record analysis by Moneyworks4me indicates that JK Tyre & Industries Ltd is a below average long term investment. However, you need to ensure you buy at a right price to earn good returns.

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,

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.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

Callback