JK Tyre & Industries Ltd - Stock Valuation and Financial Performance

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

JK Tyres & Inds. Share Price

434 9.80 2.31%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on JK Tyres & Inds.

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

JK Tyre & Industries stock performance -

mw4me loader
P/E Ratio (SA):
21.99
Market Cap:
11,255.4 Cr.
52-wk low:
152.3
52-wk high:
554.4

Is JK Tyre & Industries Ltd an attractive stock to invest in?

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

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 performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 11.4%12.4%15.6%9.3%4.8%7.5%8.9%8.5%6.8%7.2%-
Value Creation
Index
-0.2-0.10.1-0.3-0.7-0.5-0.4-0.4-0.5-0.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 5,9516,1255,8265,9796,4537,6106,0936,1358,0329,61810,090
Sales YoY Gr.-2.9%-4.9%2.6%7.9%17.9%-19.9%0.7%30.9%19.7%-
Adj EPS 9.111.519.110.32.36.99.59.87.38.419.6
YoY Gr.-25.3%66.8%-45.9%-78.2%205.3%38.3%3.3%-25.4%14.3%-
BVPS (₹) 40.548.162.673.872.58187.296.9102.3117.1144.7
Adj Net
Profit
18826043323551.1169234242180206512
Cash Flow from Ops. 5635878151644952627831,25373.3677-
Debt/CF from Ops. 4.24.43.220.67.112.74.11.938.53.8-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 5.5%8.3%16.4%19.7%
Adj EPS -1%30.1%-4.1%14.3%
BVPS12.5%10.1%10.3%14.5%
Share Price 28.6% 36.5% 58.3% 174.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
23.626.834.515.23.19.311.310.67.37.615
Op. Profit
Mgn %
1112.317.212.57.69.610.713.98.78.112.4
Net Profit
Mgn %
3.24.27.43.90.82.23.83.92.32.15.1
Debt to
Equity
2.92.41.822.11.71.511.10.9-
Working Cap
Days
12913614415416614919318415614266
Cash Conv.
Cycle
454443597370957668689

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 15.00%

Sales growth is growing at healthy rate in last 3 years 16.44%

Debt to equity has declined versus last 3 years average to 0.88

Net Profit has been subdued in last 3 years -4.13%

Sales growth is not so good in last 4 quarters at 7.57%

Latest Financials - JK Tyre & Industries Ltd.

Standalone Consolidated
TTM EPS (₹) 19.6 27.8
TTM Sales (₹ Cr.) 10,090 14,936
BVPS (₹.) 144.7 172
Reserves (₹ Cr.) 3,727 4,439
P/BV 2.98 2.51
PE 21.99 15.52
From the Market
52 Week Low / High (₹) 152.25 / 554.35
All Time Low / High (₹) 2.56 / 554.35
Market Cap (₹ Cr.) 11,255
Equity (₹ Cr.) 52.1
Face Value (₹) 2
Industry PE 26.9

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

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Analyst's Notes

Key Ratios of JK Tyres & Inds.

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales5,9516,1255,8265,9796,4537,6106,0936,1358,0329,618
Operating Expenses 5,2965,3744,8265,2335,9666,8825,4435,2847,3328,843
Manufacturing Costs600656548567644651620595750856
Material Costs4,0373,9503,3593,6974,3475,1643,8863,7925,5416,762
Employee Cost 398459523535524560554548607708
Other Costs 261309396435451507383349433518
Operating Profit 655752999746487728650851701775
Operating Profit Margin (%) 11.0%12.3%17.2%12.5%7.6%9.6%10.7%13.9%8.7%8.1%
Other Income 16152360327928363032
Interest 248241236268274316343266230258
Depreciation 152139172184175188242246241243
Exceptional Items -76-9-13105-72-7214-36
Profit Before Tax 1953776014606430585396264270
Tax 6012417612821100-1431398186
Profit After Tax 13525342433243204229256183184
PAT Margin (%) 2.3%4.1%7.3%5.6%0.7%2.7%3.8%4.2%2.3%1.9%
Adjusted EPS (₹)6.611.218.714.61.98.39.310.47.47.5
Dividend Payout Ratio (%)15%13%13%17%79%18%8%19%20%27%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 8361,0911,4201,6741,6441,9952,1632,3982,5262,889
Share Capital 41454545454949494949
Reserves 7951,0461,3741,6291,5991,9462,1132,3492,4772,840
Minority Interest0000000000
Debt2,2082,3802,3683,1322,9803,0102,9931,9372,4992,316
Long Term Debt1,1631,4161,4931,6371,4581,5581,4651,188972849
Short Term Debt1,0459648751,4951,5221,4521,5287481,5271,467
Trade Payables9039038309119619799441,1961,3811,037
Others Liabilities 1,1721,5091,4521,3431,5931,4211,3891,7251,7391,764
Total Liabilities 5,1205,8846,0707,0607,1787,4057,4887,2568,1458,006

Fixed Assets

Gross Block3,8624,0865,2225,0905,5215,4395,8385,9116,0946,334
Accumulated Depreciation1,5891,7321,9001,7961,9492,1152,3452,5802,7512,965
Net Fixed Assets2,2742,3543,3213,2943,5723,3243,4933,3323,3443,369
CWIP 143697891368374616979105
Investments 1029391490545597724733791798
Inventories7667427409311,0261,1361,0961,1951,5331,292
Trade Receivables1,1861,2561,2101,4701,2901,6321,4361,3671,6671,774
Cash Equivalents 17810062677210046637679
Others Assets471642557672590542633498655590
Total Assets 5,1205,8846,0707,0607,1787,4057,4887,2568,1458,006

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 5635878151644952627831,25373677
PBT 1953776014606430585396264270
Adjustment 393363379279415442573453444502
Changes in Working Capital 13-66-41-48645-421143471-577-49
Tax Paid -38-87-124-89-29-64-19-67-58-47
Cash Flow From Investing Activity -219-673-474-663-255130-251-20-203-268
Capex -228-676-507-239-274171-142-44-172-269
Net Investments -4-182283-71-11-1323-11
Others 142011-50890-29-10821-5411
Cash Flow From Financing Activity -261-18-358500-236-376-587-1,213141-412
Net Proceeds from Shares 000001980000
Net Proceeds from Borrowing 0029537877-152-235-82-306-262
Interest Paid -251-251-234-262-272-311-330-280-229-251
Dividend Paid -17-24-41-57-57-34-45-17-49-37
Others 6257-37844116-7723-834726139
Net Cash Flow 83-105-171416-552012-3
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)17.3726.3633.8121.472.611.2311.0411.317.466.8
ROCE (%)14.117.8821.7916.16.6311.888.0213.149.829.8
Asset Turnover Ratio1.331.231.091.010.921.040.820.831.041.19
PAT to CFO Conversion(x)4.172.321.920.4911.511.283.424.890.43.68
Working Capital Days
Receivable Days59666974777092836965
Inventory Days44414246545267686254
Payable Days758394867969901038565

JK Tyre & Industries Ltd Stock News

JK Tyre & Industries Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of JK Tyres & Inds. on 28-Mar-2024 16:01 is ₹434.0.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of JK Tyres & Inds. stood at ₹11,255.4.
The latest P/E ratio of JK Tyres & Inds. as of 28-Mar-2024 16:01 is 21.99.
The latest P/B ratio of JK Tyres & Inds. as of 28-Mar-2024 16:01 is 2.98.
The 52-week high of JK Tyres & Inds. is ₹554.4 and the 52-week low is ₹152.2.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of JK Tyres & Inds. is ₹10,090 ( Cr.) .

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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