JKTYRE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | JKTYRE | Market Cap | 11,707 Cr. | Current Price | 406 ₹ | High / Low | 612 ₹ |
| Stock P/E | 16.8 | Book Value | 154 ₹ | Dividend Yield | 0.74 % | ROCE | 12.1 % |
| ROE | 9.71 % | Face Value | 2.00 ₹ | DMA 50 | 437 ₹ | DMA 200 | 433 ₹ |
| Chg in FII Hold | 1.67 % | Chg in DII Hold | -0.05 % | PAT Qtr | 205 Cr. | PAT Prev Qtr | 220 Cr. |
| RSI | 44.1 | MACD | -8.16 | Volume | 11,75,360 | Avg Vol 1Wk | 16,82,835 |
| Low price | 307 ₹ | High price | 612 ₹ | PEG Ratio | 0.57 | Debt to equity | 0.59 |
| 52w Index | 32.4 % | Qtr Profit Var | 236 % | EPS | 23.6 ₹ | Industry PE | 24.0 |
Financials: JK Tyre shows moderate fundamentals with ROCE at 12.1% and ROE at 9.71%. EPS of ₹23.6 supports profitability, while quarterly PAT of ₹205 Cr. declined slightly from ₹220 Cr. Debt-to-equity ratio of 0.59 indicates moderate leverage.
Valuation: P/E of 16.8 is below industry average (24.0), suggesting undervaluation. PEG ratio of 0.57 highlights attractive growth-adjusted pricing. Dividend yield of 0.74% adds modest income support.
Business Model: JK Tyre operates in the automotive and tyre sector, with competitive advantage in brand recognition and diversified product lines. However, margins remain sensitive to raw material costs.
Entry Zone: Attractive entry between ₹390–₹410, near support levels below DMA 50 (₹437). Long-term holding favorable if profitability sustains and leverage is managed.
Positive
- EPS of ₹23.6 reflects strong earnings base
- PEG ratio of 0.57 indicates undervaluation with growth potential
- P/E of 16.8 below industry average (24.0) offers valuation comfort
- FII holdings increased (+1.67%), showing foreign investor confidence
Limitation
- ROE (9.71%) and ROCE (12.1%) are modest compared to peers
- Debt-to-equity ratio of 0.59 indicates moderate leverage risk
- RSI at 44.1 and negative MACD (-8.16) show weak momentum
- Quarterly PAT declined from ₹220 Cr. to ₹205 Cr.
Company Negative News
- Sequential decline in quarterly profits
- Weak technical indicators (RSI, MACD) suggest bearish bias
Company Positive News
- Strong quarterly profit variation (+236%) year-on-year
- Increased foreign institutional inflows (+1.67%)
- Long-term fundamentals intact with undervaluation
Industry
- Tyre sector benefits from automotive demand recovery
- Industry P/E at 24.0 highlights JK Tyre trading at discount
Conclusion
JK Tyre presents moderate fundamentals with undervaluation and growth potential, supported by strong EPS and foreign inflows. However, modest return ratios, leverage, and weak technicals limit near-term upside. Entry around ₹390–₹410 offers a favorable risk-reward for long-term investors, with monitoring of profitability trends and debt management essential.
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