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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of JK Tyre & Industries Ltd

About the Company - JK Tyre & Industries Ltd

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. Bakul JainDirector
Dr. Wolfgang HolzbachDirector

JK Tyre & Industries Ltd. Share Price Update

Share PriceValue
Today₹495.55
Previous Day₹511.60

Basic Stock Data of JK Tyre & Industries Ltd

Market Cap 13,353 Cr.
Current Price 512
High / Low554/142
Stock P/E18.6
Book Value 144
Dividend Yield0.39 %
ROCE11.1 %
ROE9.49 %
Face Value 2.00

Data Source: screener.in

JK Tyre & Industries Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales2,2752,7692,9272,6082,9873,0763,3123,6433,7573,6133,6323,7183,898
Expenses1,9202,2692,4732,3292,6942,8033,0843,3583,4593,2743,2563,2613,308
Operating Profit355500455280292273228285297339376457589
OPM %16%18%16%11%10%9%7%8%8%9%10%12%15%
Other Income324727-1131513-28-15-423135
Interest12310710510810610410199109121125122109
Depreciation9798969697969610199102106106108
Profit before tax1673432817510288445774113168242377
Tax %35%33%30%41%37%39%13%41%34%38%33%34%34%
Net Profit11023019544655438355067112159249
EPS in Rs4.269.107.681.882.702.311.631.512.082.664.406.259.83

JK Tyre & Industries Ltd Quarterly Chart

JK Tyre & Industries Ltd Profit & Loss

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%

JK Tyre & Industries Ltd Profit & Loss Yearly Chart

JK Tyre & Industries Ltd Growth

Compounded Sales Growth
10 Years:8%
5 Years:12%
3 Years:19%
TTM:4%
Compounded Profit Growth
10 Years:4%
5 Years:63%
3 Years:2%
TTM:225%
Stock Price CAGR
10 Years:34%
5 Years:42%
3 Years:59%
1 Year:230%
Return on Equity
10 Years:13%
5 Years:10%
3 Years:9%
Last Year:9%

JK Tyre & Industries Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital41414145454545494949494949
Reserves7148651,0441,3561,7061,9191,9162,2352,2822,6232,7993,3473,715
Borrowings2,1412,7032,7052,9752,9005,6555,8115,7585,5494,8015,2204,8824,442
Other Liabilities2,2451,9532,2532,5282,4012,7762,7623,2273,3333,4674,0924,0614,681
Total Liabilities5,1405,5636,0436,9047,05210,39510,53511,26911,21310,94012,16112,33912,887
Fixed Assets1,8702,7142,6902,7013,7475,7946,1426,2286,3826,2426,4296,4676,450
CWIP76576177830106326309270284299106195447
Investments10110411514016073128131140147133144137
Other Assets2,4052,6683,0603,2323,0394,2023,9564,6404,4074,2525,4935,5335,854
Total Assets5,1405,5636,0436,9047,05210,39510,53511,26911,21310,94012,16112,33912,887

JK Tyre & Industries Ltd Reserves and Borrowings Chart

JK Tyre & Industries Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 362-156557349031066377971,2371,5983461,224
Cash from Investing Activity -612-201-224-806-511-807-394-261-319-134-244-398
Cash from Financing Activity 240252-335-1-422830-409-522-963-1,441-96-747
Net Cash Flow-103596-73-31128-16514-4423579

JK Tyre & Industries Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days555564727485686877636057
Inventory Days55717070821111019211111911079
Days Payable916879849010281871151059966
Cash Conversion Cycle195856576694887373787170
Working Capital Days234440354681455455646858
ROCE %8%15%19%19%20%14%6%10%8%12%9%11%

JK Tyre & Industries Ltd Financial Efficiency Indicators Chart

JK Tyre & Industries Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters56.23%56.23%55.93%55.93%56.26%56.26%56.26%56.26%56.26%56.26%56.26%53.13%
FIIs3.32%6.28%7.76%8.13%8.16%7.35%7.24%7.46%6.73%8.69%10.29%12.21%
DIIs1.44%1.36%1.31%1.27%1.24%1.23%1.23%1.29%1.22%1.22%1.27%5.79%
Government0.58%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public38.43%36.13%35.00%34.68%34.35%35.16%35.29%34.99%35.79%33.83%32.19%28.87%
No. of Shareholders1,85,8661,85,6791,84,5351,97,5562,15,7262,18,5531,92,7751,85,8511,91,6541,87,3561,88,3992,03,029

JK Tyre & Industries Ltd Shareholding Pattern Chart

No. of JK Tyre & Industries Ltd Shareholders

JK Tyre & Industries Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Motilal Oswal Nifty Microcap 250 Index Fund1050010.693.2
Groww Nifty Total Market Index Fund2410.020.01

JK Tyre & Industries Ltd ROCE Trend

JK Tyre & Industries Ltd EPS Trend

JK Tyre & Industries Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)10.648.5312.976.127.77
Diluted EPS (Rs.)10.648.5312.976.127.77
Cash EPS (Rs.)27.2823.7829.2421.4019.98
Book Value[Excl.RevalReserv]/Share (Rs.)141.96119.69112.8598.5498.32
Book Value[Incl.RevalReserv]/Share (Rs.)141.96119.69112.8598.5498.32
Revenue From Operations / Share (Rs.)594.72486.62369.63354.29421.20
PBDIT / Share (Rs.)54.1945.0754.8041.2748.58
PBIT / Share (Rs.)37.6629.4239.1025.9235.76
PBT / Share (Rs.)16.7012.5521.70-0.6810.99
Net Profit / Share (Rs.)10.758.1313.546.057.16
NP After MI And SOA / Share (Rs.)10.668.5312.976.127.16
PBDIT Margin (%)9.119.2614.8211.6411.53
PBIT Margin (%)6.336.0410.577.318.49
PBT Margin (%)2.802.575.87-0.192.60
Net Profit Margin (%)1.801.673.661.701.70
NP After MI And SOA Margin (%)1.791.753.501.721.70
Return on Networth / Equity (%)7.727.3711.946.467.71
Return on Capital Employeed (%)12.9010.8914.129.7313.18
Return On Assets (%)2.101.712.901.331.55
Long Term Debt / Equity (X)0.690.861.071.351.45
Total Debt / Equity (X)1.411.801.502.202.29
Asset Turnover Ratio (%)0.940.830.660.640.84
Current Ratio (X)1.030.950.980.880.95
Quick Ratio (X)0.610.510.550.540.59
Inventory Turnover Ratio (X)3.063.072.322.273.15
Dividend Payout Ratio (NP) (%)14.0623.455.3924.4919.29
Dividend Payout Ratio (CP) (%)5.518.272.446.986.91
Earning Retention Ratio (%)85.9476.5594.6175.5180.71
Cash Earning Retention Ratio (%)94.4991.7397.5693.0293.09
Interest Coverage Ratio (X)2.942.652.901.852.30
Interest Coverage Ratio (Post Tax) (X)1.721.471.641.461.51
Enterprise Value (Cr.)8433.107927.226629.246086.757446.90
EV / Net Operating Revenue (X)0.570.660.720.690.71
EV / EBITDA (X)6.327.144.915.996.23
MarketCap / Net Operating Revenue (X)0.260.240.290.110.21
Retention Ratios (%)85.9376.5494.6075.5080.70
Price / BV (X)1.121.011.000.430.98
Price / Net Operating Revenue (X)0.260.240.290.110.21
EarningsYield0.060.070.110.150.07

JK Tyre & Industries Ltd Profitability Ratios (%)

JK Tyre & Industries Ltd Liquidity Ratios

JK Tyre & Industries Ltd Liquidity Ratios (%)

JK Tyre & Industries Ltd Interest Coverage Ratios (%)

JK Tyre & Industries Ltd Valuation Ratios

Fair Value of JK Tyre & Industries Ltd Stock

Fair Value: ₹255.17

The stock is overvalued by 50.16% compared to the current price ₹512

*Investments are subject to market risks

Strength and Weakness of JK Tyre & Industries Ltd Stock

StrengthWeakness
  1. The company has shown consistent growth in sales (8.69 cr) and profit (369.92 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 33.57 and average Dividend Yield of 7.75%.
  2. The stock has a low average ROCE of 12.58%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 51.08, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 66.92, which may not be favorable.
  5. The company has higher borrowings (4,272.46) compared to reserves (2,040.08), which may suggest financial risk.

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