JKTYRE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | JKTYRE | Market Cap | 14,400 Cr. | Current Price | 499 ₹ | High / Low | 529 ₹ |
| Stock P/E | 29.5 | Book Value | 162 ₹ | Dividend Yield | 0.60 % | ROCE | 12.1 % |
| ROE | 9.71 % | Face Value | 2.00 ₹ | DMA 50 | 485 ₹ | DMA 200 | 416 ₹ |
| Chg in FII Hold | 0.83 % | Chg in DII Hold | 0.30 % | PAT Qtr | 167 Cr. | PAT Prev Qtr | 173 Cr. |
| RSI | 49.2 | MACD | 6.08 | Volume | 6,39,316 | Avg Vol 1Wk | 7,15,105 |
| Low price | 232 ₹ | High price | 529 ₹ | PEG Ratio | 1.00 | Debt to equity | 0.59 |
| 52w Index | 90.0 % | Qtr Profit Var | 64.3 % | EPS | 17.5 ₹ | Industry PE | 28.3 |
📊 Financials: JKTYRE presents moderate fundamentals with ROCE at 12.1% and ROE at 9.71%, reflecting average capital efficiency. Debt-to-equity ratio of 0.59 indicates a leveraged but manageable balance sheet. Quarterly PAT declined slightly from 173 Cr. to 167 Cr., though overall profit variation remains strong at 64.3%. EPS of 17.5 ₹ supports earnings consistency, while cash flows are stable but sensitive to debt levels.
💹 Valuation: Current P/E of 29.5 is slightly above the industry average of 28.3, suggesting fair valuation with a mild premium. P/B ratio is ~3.1 (Current Price / Book Value), which is reasonable compared to peers. PEG ratio of 1.00 indicates balanced growth relative to valuation. Intrinsic value appears close to CMP, offering limited margin of safety but not excessive overvaluation.
🏢 Business Model & Competitive Advantage: JKTYRE operates in the tire manufacturing sector, benefiting from automotive demand and replacement cycles. Competitive strengths include established brand presence, diversified product portfolio, and strong distribution networks. However, modest return ratios and debt levels limit its edge compared to leaner competitors.
🎯 Entry Zone Recommendation: Current price of 499 ₹ is near its 52-week high of 529 ₹, limiting immediate upside. A more attractive entry zone would be around 440–460 ₹ (closer to DMA 200 at 416 ₹), offering better risk-reward. Long-term investors may accumulate on dips for steady compounding returns.
Positive
- Strong quarterly profit variation of 64.3% indicates operational improvement.
- EPS of 17.5 ₹ supports consistent earnings power.
- FII holdings increased by 0.83% and DII holdings by 0.30%, showing institutional confidence.
- Established brand presence with diversified product portfolio.
Limitation
- ROCE (12.1%) and ROE (9.71%) are modest compared to industry leaders.
- Debt-to-equity ratio of 0.59 adds financial risk.
- PAT decline from 173 Cr. to 167 Cr. in latest quarter.
- Current price near 52-week high limits upside potential.
Company Negative News
- Recent quarterly profit decline raises concerns about sustainability.
- Return ratios remain modest despite revenue growth.
Company Positive News
- Strong profit variation highlights operational resilience.
- Institutional inflows (FII and DII) reflect investor confidence.
- Technical support around DMA 200 (416 ₹) provides stability.
Industry
- Automotive and tire industry P/E at 28.3 reflects moderate valuations.
- Sector growth driven by rising automobile demand and replacement cycles.
- Government infrastructure push and mobility trends support long-term expansion.
Conclusion
⚖️ JKTYRE is moderately strong with balanced valuations and institutional support. While debt and modest return ratios limit its competitive edge, the company benefits from industry demand and brand presence. Investors should consider accumulating near 440–460 ₹ for better margin of safety. Long-term holding may yield steady returns, supported by automotive sector growth and operational improvements.
Would you like me to also highlight short-term technical signals (RSI, MACD) alongside this fundamental view to refine entry timing?