By Aditya Raghunath
Investing.com -- One of India’s leading tyre companies, JK Tyre & Industries Ltd. (NS: JKIN ) has seen its share price soar over 86% in 2021.
ICICI Securities had recommended a buy on the stock in July with a target price of Rs 180. It said the company is focused on balance sheet deleveraging and capital efficiency.
The ICICI Securities report said that JK Tyre expects the demand situation to normalise from Q2FY22E onwards. The company added over 1,400 dealers in FY21. While raw material prices are set to go up in FY22, it is looking to mitigate the same via calibrated price hikes, premiumisation of products, operating leverage gains and capacity debottlenecking. Net debt was Rs 4,500 crore in FY21 and the company is looking to retire Rs 1,500 crore in the next three years.
JK Tyre’s net profit for Q1 FY22 came in at Rs 44 crore compared with a net loss of Rs 204 crore in the corresponding quarter in the last fiscal.
Jatin Gohil, a technical analyst at Reliance (NS: RELI ) Securities told Moneycontrol that the stock can hit up to Rs 225 in the next 12 months. The downside for the stock will be at Rs 130 according to technical charts.
Rs 10,000 invested in the stock on December 31 would be worth Rs 19,393 on August 10.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
can we invest now also is this time also correct time to entryLike 2