Fundamental Analysis
JK TYRE & INDUSTRIES LTD.
Ticker : 530007
BUY : Rs 127.75
Target : Rs 143
JK Tyres & Industries Ltd is engaged in the manufacturing of tyres, tubes, and flaps. On the consolidated quarterly front, the company recorded net sales of Rs 2,769.28 crore for Q3FY21, which is an increase of 25.89 per cent from its net sales of Rs 2,199.80 crore reported for Q3FY20. The operating profit rose by more than 100 per cent to Rs 507.11 crore in Q3FY21 from Rs 251.43 crore posted in Q3FY20. The net profit increased massively from Rs 11.65 crore in Q3FY20 to Rs 230.66 crore in Q3FY21. The company is on the verge of reviving the orders kept on hold before the pandemic and would give a green signal for fulfilling the orders, once the situation is normalised. The company is focussing on premiumisation of its product range, going forward, which will contribute to higher profitability. Hence, considering the strong financial performance and optimistic growth prospects of the company, we recommend-BUY.