⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
JKTYRE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | JKTYRE | Market Cap | 12,582 Cr. | Current Price | 437 ₹ | High / Low | 612 ₹ |
| Stock P/E | 18.0 | Book Value | 154 ₹ | Dividend Yield | 0.69 % | ROCE | 12.1 % |
| ROE | 9.71 % | Face Value | 2.00 ₹ | DMA 50 | 488 ₹ | DMA 200 | 440 ₹ |
| Chg in FII Hold | 0.83 % | Chg in DII Hold | 0.30 % | PAT Qtr | 205 Cr. | PAT Prev Qtr | 220 Cr. |
| RSI | 38.1 | MACD | -29.5 | Volume | 13,36,022 | Avg Vol 1Wk | 14,07,118 |
| Low price | 232 ₹ | High price | 612 ₹ | PEG Ratio | 0.61 | Debt to equity | 0.59 |
| 52w Index | 54.0 % | Qtr Profit Var | 236 % | EPS | 23.6 ₹ | Industry PE | 24.8 |
📊 Core Financials
- Revenue Growth: PAT declined slightly (₹205 Cr vs ₹220 Cr)
- Profit Margins: Moderate with ROE at 9.71% and ROCE at 12.1%
- Debt Ratios: Debt-to-Equity at 0.59, manageable but notable
- Cash Flows: Dividend yield of 0.69% provides modest shareholder returns
- Return Metrics: Efficiency below industry leaders
💹 Valuation Indicators
- P/E Ratio: 18.0 (below industry average of 24.8, undervalued)
- P/B Ratio: ~2.8 (Price ₹437 / Book Value ₹154)
- PEG Ratio: 0.61 (suggests undervaluation relative to growth)
- Intrinsic Value: Attractive compared to peers
🏢 Business Model & Competitive Advantage
- Leading tyre manufacturer with strong domestic presence
- Competitive advantage lies in brand recognition and distribution network
- Exposure to automotive demand cycles supports long-term growth
📈 Entry Zone Recommendation
- Current Price: ₹437
- Support Zone: ₹420 – ₹440 (near DMA 200, RSI at 38.1 indicates oversold)
- Long-term Holding: Attractive for value investors given low P/E and PEG ratios
✅ Positive
- Low P/E ratio compared to industry average
- PEG ratio indicates undervaluation relative to growth
- Institutional investor confidence (FII +0.83%, DII +0.30%)
⚠️ Limitation
- ROE and ROCE are modest compared to peers
- Debt-to-equity ratio at 0.59 adds financial pressure
- Dividend yield is modest
📉 Company Negative News
- Quarterly PAT declined (₹205 Cr vs ₹220 Cr)
- Technical indicators (MACD negative, RSI oversold) show bearish trend
📈 Company Positive News
- Quarterly profit variation of 236% YoY indicates strong growth momentum
- Institutional holdings increased, reflecting investor confidence
🌐 Industry
- Tyre industry benefits from automotive demand recovery
- Industry P/E at 24.8 highlights JKTYRE trading at a discount
🔎 Conclusion
JKTYRE demonstrates undervaluation with low P/E and PEG ratios, supported by strong YoY profit growth. However, modest return ratios and moderate debt limit upside. Entry around ₹420–₹440 offers a favorable risk-reward profile. Long-term holding is suitable for value investors, especially with automotive demand recovery driving industry growth.