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Last Updated on: 14 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

JK Tyre & Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 10, 2024, 10:57 pm

Market Cap 10,343 Cr.
Current Price 377
High / Low554/332
Stock P/E13.5
Book Value 172
Dividend Yield1.19 %
ROCE19.3 %
ROE20.6 %
Face Value 2.00
PEG Ratio0.44

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for JK Tyre & Industries Ltd

Competitors of JK Tyre & Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Goodyear India Ltd 2,391 Cr. 1,0361,440/1,00440.9 2551.45 %22.0 %16.0 % 10.0
TVS Srichakra Ltd 2,896 Cr. 3,7815,097/3,52529.3 1,4521.25 %11.1 %10.6 % 10.0
MRF Ltd 50,606 Cr. 1,19,3541,51,445/1,07,03326.0 41,6590.17 %16.1 %12.6 % 10.0
JK Tyre & Industries Ltd 10,343 Cr. 377554/33213.5 1721.19 %19.3 %20.6 % 2.00
Innovative Tyres & Tubes Ltd 10.2 Cr. 5.6510.2/4.50 0.130.00 %26.6 %% 10.0
Industry Average23,296.14 Cr16,338.8325.845,660.140.87%18.69%15.53%6.88

All Competitor Stocks of JK Tyre & Industries Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales2,7692,9272,6082,9873,0763,3123,6433,7573,6133,6323,7183,8983,688
Expenses2,2692,4732,3292,6942,8033,0843,3583,4593,2743,2563,2613,3083,138
Operating Profit500455280292273228285297339376457589550
OPM %18%16%11%10%9%7%8%8%9%10%12%15%15%
Other Income4727-1131513-28-15-4231358
Interest10710510810610410199109121125122109107
Depreciation98969697969610199102106106108111
Profit before tax3432817510288445774113168242377341
Tax %33%30%41%37%39%13%41%34%38%33%34%34%33%
Net Profit23019544655438355067112159249227
EPS in Rs9.107.681.882.702.311.631.512.082.664.406.259.838.47

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6,7456,9247,5837,3156,8987,6898,27210,3688,7239,10211,98314,64514,861
Expenses6,4166,3066,7126,3845,7826,5577,5359,2567,7377,79610,91013,34713,099
Operating Profit3296188719311,1171,1327371,1129861,3061,0731,2981,762
OPM %5%9%11%13%16%15%9%11%11%14%9%9%12%
Other Income-4312-41-3011135135-5-768140-2536
Interest188233276257252440466521549466419454477
Depreciation121133179158216291299316378387385407421
Profit before tax-23264374486660535107270-17534309411899
Tax %-66%26%32%33%31%29%41%35%989%38%35%36%
Net Profit-3220326333046738163171141331201263586
EPS in Rs-1.569.9012.8114.5320.6016.552.917.166.1212.978.5310.6623.14
Dividend Payout %-32%7%8%10%12%15%52%21%11%15%18%19%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)734.38%29.56%25.48%41.52%-18.42%-83.46%171.43%-17.54%134.75%-39.27%30.85%
Change in YoY Net Profit Growth (%)0.00%-704.82%-4.08%16.04%-59.93%-65.05%254.89%-188.97%152.30%-174.03%70.12%

JK Tyre & Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:7%
5 Years:8%
3 Years:18%
TTM:-1%
Compounded Profit Growth
10 Years:11%
5 Years:33%
3 Years:40%
TTM:34%
Stock Price CAGR
10 Years:13%
5 Years:39%
3 Years:38%
1 Year:4%
Return on Equity
10 Years:14%
5 Years:13%
3 Years:13%
Last Year:21%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital414145454545494949494952
Reserves8651,0441,3561,7061,9191,9162,2352,2822,6232,7993,3474,435
Borrowings2,7032,7052,9752,9005,6555,8115,7585,5494,8015,2204,8824,609
Other Liabilities1,9532,2532,5282,4012,7762,7623,2273,3333,4674,0924,0614,915
Total Liabilities5,5636,0436,9047,05210,39510,53511,26911,21310,94012,16112,33914,012
Fixed Assets2,7142,6902,7013,7475,7946,1426,2286,3826,2426,4296,4676,829
CWIP76177830106326309270284299106195367
Investments10411514016073128131140147133144138
Other Assets2,6683,0603,2323,0394,2023,9564,6404,4074,2525,4935,5336,677
Total Assets5,5636,0436,9047,05210,39510,53511,26911,21310,94012,16112,33914,012

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-156557349031066377971,2371,5983461,2241,614
Cash from Investing Activity +-201-224-806-511-807-394-261-319-134-244-398-1,203
Cash from Financing Activity +252-335-1-422830-409-522-963-1,441-96-747-413
Net Cash Flow3596-73-31128-16514-4423579-2

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow329.00616.00869.00929.00-1.00-4.00732.00-4.00981.00-3.00-4.00-3.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days556472748568687763605767
Inventory Days71707082111101921111191107992
Days Payable687984901028187115105996687
Cash Conversion Cycle585657669488737378717072
Working Capital Days444035468145547364685859
ROCE %15%19%19%20%14%6%10%8%12%9%11%19%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters55.93%55.93%56.26%56.26%56.26%56.26%56.26%56.26%56.26%53.13%53.13%53.13%
FIIs7.76%8.13%8.16%7.35%7.24%7.46%6.73%8.69%10.29%12.21%15.29%14.15%
DIIs1.31%1.27%1.24%1.23%1.23%1.29%1.22%1.22%1.27%5.79%5.18%4.99%
Public35.00%34.68%34.35%35.16%35.29%34.99%35.79%33.83%32.19%28.87%26.40%27.73%
No. of Shareholders1,84,5351,97,5562,15,7262,18,5531,92,7751,85,8511,91,6541,87,3561,88,3992,03,0292,26,1432,86,125

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal Nifty Microcap 250 Index Fund105,0010.693.22412024-11-1043468.88%
Groww Nifty Total Market Index Fund2410.020.012412024-11-100%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)29.8410.648.5312.976.12
Diluted EPS (Rs.)29.7410.648.5312.976.12
Cash EPS (Rs.)47.8827.2823.7829.2421.40
Book Value[Excl.RevalReserv]/Share (Rs.)176.68141.96119.69112.8598.54
Book Value[Incl.RevalReserv]/Share (Rs.)176.68141.96119.69112.8598.54
Revenue From Operations / Share (Rs.)575.44594.72486.62369.63354.29
PBDIT / Share (Rs.)81.3954.1945.0754.8041.27
PBIT / Share (Rs.)64.6437.6629.4239.1025.92
PBT / Share (Rs.)46.4516.7012.5521.70-0.68
Net Profit / Share (Rs.)31.1310.758.1313.546.05
NP After MI And SOA / Share (Rs.)30.1610.668.5312.976.12
PBDIT Margin (%)14.149.119.2614.8211.64
PBIT Margin (%)11.236.336.0410.577.31
PBT Margin (%)8.072.802.575.87-0.19
Net Profit Margin (%)5.401.801.673.661.70
NP After MI And SOA Margin (%)5.241.791.753.501.72
Return on Networth / Equity (%)17.527.727.3711.946.46
Return on Capital Employeed (%)20.0412.9010.8914.129.73
Return On Assets (%)5.572.101.712.901.33
Long Term Debt / Equity (X)0.480.690.861.071.35
Total Debt / Equity (X)0.991.411.801.502.20
Asset Turnover Ratio (%)1.130.940.830.660.64
Current Ratio (X)1.151.030.950.980.88
Quick Ratio (X)0.750.610.510.550.54
Inventory Turnover Ratio (X)3.953.063.072.322.27
Dividend Payout Ratio (NP) (%)9.5714.0623.455.3924.49
Dividend Payout Ratio (CP) (%)6.155.518.272.446.98
Earning Retention Ratio (%)90.4385.9476.5594.6175.51
Cash Earning Retention Ratio (%)93.8594.4991.7397.5693.02
Interest Coverage Ratio (X)4.752.942.652.901.85
Interest Coverage Ratio (Post Tax) (X)2.881.721.471.641.46
Enterprise Value (Cr.)15077.688433.107927.226629.246086.75
EV / Net Operating Revenue (X)1.000.570.660.720.69
EV / EBITDA (X)7.116.327.144.915.99
MarketCap / Net Operating Revenue (X)0.750.260.240.290.11
Retention Ratios (%)90.4285.9376.5494.6075.50
Price / BV (X)2.511.121.011.000.43
Price / Net Operating Revenue (X)0.750.260.240.290.11
EarningsYield0.060.060.070.110.15

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of JK Tyre & Industries Ltd as of November 14, 2024 is: 484.02

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 14, 2024, JK Tyre & Industries Ltd is Undervalued by 28.39% compared to the current share price 377.00

Intrinsic Value of JK Tyre & Industries Ltd as of November 14, 2024 is: 631.52

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 14, 2024, JK Tyre & Industries Ltd is Undervalued by 67.51% compared to the current share price 377.00

Last 5 Year EPS CAGR: 30.47%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (8.69 cr) and profit (369.92 cr) over the years.
  1. The stock has a low average ROCE of 13.50%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 55.58, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 71.33, which may not be favorable.
  4. The company has higher borrowings (4,464.00) compared to reserves (2,210.58), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in JK Tyre & Industries Ltd:
    1. Net Profit Margin: 5.4%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 20.04% (Industry Average ROCE: 18.69%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 17.52% (Industry Average ROE: 15.53%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.88
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.75
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 13.5 (Industry average Stock P/E: 25.84)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.99
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

JK Tyre & Industries Ltd. is a Public Limited Listed company incorporated on 14/02/1951 and has its registered office in the State of Rajasthan, India. Company’s Corporate Identification Number(CIN) is L67120RJ1951PLC045966 and registration number is 045966. Currently Company is involved in the business activities of Manufacture of rubber tyres and tubes for motor vehicles, motorcycles, scooters, three-wheelers, tractors and aircraft. Company’s Total Operating Revenue is Rs. 8032.06 Cr. and Equity Capital is Rs. 49.25 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Tyres & TubesJaykaygram, PO - Tyre Factory, Kankroli Rajasthan 313342investorjktyre@jkmail.com
http://www.jktyre.com
Management
NamePosition Held
Dr. Raghupati SinghaniaChairman & Managing Director
Mr. Anshuman SinghaniaManaging Director
Mr. Arun K BajoriaPresident & Director
Mr. Shreekant SomanyDirector
Mrs. Meera ShankarDirector
Mrs. Sunanda SinghaniaDirector
Mr. Subhrakant PandaDirector
Mr. Kalpataru TripathyDirector
Mr. Bharat Hari SinghaniaDirector
Mr. Vimal BhandariDirector
Mr. Krishna Kumar BangurDirector
Dr. Jorg NohlDirector

FAQ

What is the latest intrinsic value of JK Tyre & Industries Ltd?

The latest intrinsic value of JK Tyre & Industries Ltd as on 14 November 2024 is ₹484.02, which is 28.39% higher than the current market price of ₹377.00.

What is the Market Cap of JK Tyre & Industries Ltd?

The Market Cap of JK Tyre & Industries Ltd is 10,343 Cr..

What is the current Stock Price of JK Tyre & Industries Ltd as on 14 November 2024?

The current stock price of JK Tyre & Industries Ltd as on 14 November 2024 is ₹377.

What is the High / Low of JK Tyre & Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of JK Tyre & Industries Ltd stocks is 554/332.

What is the Stock P/E of JK Tyre & Industries Ltd?

The Stock P/E of JK Tyre & Industries Ltd is 13.5.

What is the Book Value of JK Tyre & Industries Ltd?

The Book Value of JK Tyre & Industries Ltd is 172.

What is the Dividend Yield of JK Tyre & Industries Ltd?

The Dividend Yield of JK Tyre & Industries Ltd is 1.19 %.

What is the ROCE of JK Tyre & Industries Ltd?

The ROCE of JK Tyre & Industries Ltd is 19.3 %.

What is the ROE of JK Tyre & Industries Ltd?

The ROE of JK Tyre & Industries Ltd is 20.6 %.

What is the Face Value of JK Tyre & Industries Ltd?

The Face Value of JK Tyre & Industries Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in JK Tyre & Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE