JKTYRE - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.0

📊 Financials & Profitability

Revenue & Profit Growth: Strong quarterly PAT growth from ₹100 Cr to ₹173 Cr — a 73% jump. The 20.4% quarterly profit variation suggests consistent improvement.

Return Metrics

ROE: 9.71% and ROCE: 12.1% — modest, but improving.

EPS: ₹15.0 — decent for a ₹374 stock, indicating fair earnings strength.

Debt Profile: Debt-to-equity at 0.66 is healthy and manageable, showing financial discipline.

Dividend Yield: 0.80% — modest but better than peers like JBMA and JKCEMENT.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 24.3 Below industry PE of 33.2 — undervalued.

P/B Ratio ~2.44 Reasonable relative to book value ₹153.

PEG Ratio 0.82 Attractive — suggests valuation is justified by growth.

🔍 Conclusion: JK Tyre appears undervalued relative to peers and industry benchmarks, with improving earnings and a favorable PEG ratio.

🏭 Business Model & Competitive Edge

Core Operations: JK Tyre is a leading manufacturer of tyres, tubes, and flaps, with strong OEM and replacement market presence.

Global Reach: Exports to over 100 countries, with manufacturing facilities in India and Mexico.

Turnaround Potential: Analysts rate it as a medium-quality stock with good technical momentum and reasonable financials

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Brand Strength: Part of the JK Organisation, with decades of legacy and innovation in tyre technology.

📉 Technicals & Entry Zone

RSI: 71.3 — overbought zone, caution advised.

MACD: 10.6 — bullish momentum.

DMA Levels: Current price above both 50-DMA and 200-DMA — technically strong.

📌 Suggested Entry Zone: ₹340–₹355 — closer to DMA levels, offering a better margin of safety.

🕰️ Long-Term Holding Guidance

Hold if Invested: Improving fundamentals and undervaluation support long-term holding.

Buy on Dips: Wait for RSI to cool off before entering.

Monitor: Profit margins, export growth, and debt levels.

Would you like a peer comparison with other tyre manufacturers like CEAT or MRF next?

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