JK Tyre Is Up 86% in 2021

  • Investing.com
  • Stock Market News
JK Tyre Is Up 86% in 2021

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.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
  • Kamlesh Khadloya @Kamlesh Khadloya
    can we invest now also is this time also correct time to entry
    Like 2

Related Articles