JKTYRE - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.4

Here’s an in-depth look at JK Tyre (JKTYRE), dissecting its financial heartbeat 🛞

🧮 Core Financials Snapshot

Profitability

ROE (11.1%) and ROCE (12.8%) are modest—not exceptional, but stable.

EPS of ₹18.1 is decent relative to its price, contributing to a low P/E.

Growth Dynamics

QoQ PAT jumped from ₹63.8 Cr. to ₹98.8 Cr., which looks promising.

But the Qtr Profit Variation of -46.9% suggests volatility in previous comparisons—so performance swings are worth monitoring.

Leverage & Liquidity

Debt-to-equity ratio of 1.01 hints at substantial leverage—typical for manufacturing, but requires watchfulness.

Dividend Yield at 0.87% offers some income but not a core investment driver.

📊 Valuation Analysis

Metric Value Interpretation

P/E Ratio 18.2 Valuation is attractive vs industry avg (33.9)

P/B Ratio ~1.94 Reasonably priced based on book value

PEG Ratio 0.49 Undervalued, implying value for growth

🔎 Verdict: JKTYRE trades at lower-than-sector multiples, and PEG suggests an undervalued state—good news for value-oriented investors.

⚙️ Business Model & Edge

JK Tyre is a major player in India’s tyre market with brand recognition and global reach through exports.

Scale efficiency and product mix diversification (passenger, commercial, radial) offer resilience.

Slight FII (+0.17%) and DII (+0.27%) inflows show mild positive sentiment among institutions.

📍 Entry Zone Insights & Technical Read

Current Price: ₹344, below both DMA-50 ₹355 and DMA-200 ₹352 — suggests technical weakness.

RSI 37.8 and MACD -4.26 indicate bearish momentum.

📌 Recommended Entry Zone

Consider accumulating around ₹330–₹340, if RSI stabilizes or reverses.

Strong support likely near ₹320–₹325 range; wait for confirmation via volume surge or MACD crossover.

⏳ Long-Term Holding Strategy

Valuation is attractive, and the company shows potential for margin improvement if raw material costs stabilize.

High debt and cyclical demand remain key risks.

A gradual accumulation strategy can work well here, particularly if the company improves efficiency and manages capex wisely.

Want me to compare JKTYRE with MRF or CEAT? Might be fun to size up the industry leaders 🏁.

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