Review

JK TYRE & INDUSTRIES LIMITED 

Ticker : 530007 
FV : Rs 2 
52-Week H/L : Rs 146.75/40.45

We had previously recommended JK Tyre & Industries in volume 37, issue no. 20, dated March 08, 2021, when the scrip was trading at Rs 127.75. It was recommended based on growth in the company’s increasing focus on premiumisation of its product range to benefit from subsequent higher profitability. 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 increased significantly to Rs 507.11 crore in Q3FY21 from Rs 251.43 crore posted in Q3FY20. The company reported a massive jump in net profit gained in Q3FY21 of Rs 230.66 crore compared to Rs 11.65 crore reported in Q3FY20. Recently, the company received a rating upgrade, indicating positive business growth and operational stability. Hence, expecting strong recovery in demand, we recommend HOLD.