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India Equity Research Reports, IPO and Stock News
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In February 2011, the share price of JK Tyre & Industries (Code: 530007) (Rs.104.05) had crashed to Rs.75 level but has now recovered smartly by 40% to over Rs.100. This recovery is despite the fact that the company posted a dismissal performance for Q3FY11. It recorded 50% growth in sales to Rs.1174 crore but PAT was down 75% at Rs.9 crore against Rs.36 crore in Q3FY10. This drastic fall in profit was due to the unprecedented rise in the price of raw materials especially natural rubber and since the company could not raise tyre prices proportionately, the bottomline was adversely impacted. Unfortunately, rubber prices are still trading high. This means that the company may again report negligible profits for Q4FY11. Hence the scrip may once again touch Rs.80 levels, which investors can accumulate for the long-term. Being a part of the reputed JK Group, it is India's leading four-wheeler tyre manufacturer and the 22nd largest tyre manufacturer in the world. Being the pioneers of radial technology, in India it accounts for 75% of Indian Truck/Bus Radial production. Notably, it is the first and only tyre company to be awarded the ‘Superbrand’ status. With a distribution network of over 4000 dealers and over 120 stocking points, the company has presence across the length & breadth of the country. Besides, it has a strong global presence in over 80 countries across 6 continents offering a wide range of products backed by world class technology. Of late, it has even entered the retreading business under the brand ‘JK TREADS’. It also enjoys the highest market share in the off-the-road tyre market. Apart from regular expansion, the company is putting up a greenfield plant in Chennai for manufacture of 25 lakh car radials and 2 lakh Truck/Bus radial tyres per annum. On the other hand, it has been able to successfully turnaround its subsidiary ‘Tornel’ in Mexico, which it acquired in 2008. Book profits now & accumulate later.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
In February 2011, the share price of JK Tyre & Industries (Code: 530007) (Rs.104.05) had crashed to Rs.75 level but has now recovered smartly by 40% to over Rs.100. This recovery is despite the fact that the company posted a dismissal performance for Q3FY11. It recorded 50% growth in sales to Rs.1174 crore but PAT was down 75% at Rs.9 crore against Rs.36 crore in Q3FY10. This drastic fall in profit was due to the unprecedented rise in the price of raw materials especially natural rubber and since the company could not raise tyre prices proportionately, the bottomline was adversely impacted. Unfortunately, rubber prices are still trading high. This means that the company may again report negligible profits for Q4FY11. Hence the scrip may once again touch Rs.80 levels, which investors can accumulate for the long-term. Being a part of the reputed JK Group, it is India's leading four-wheeler tyre manufacturer and the 22nd largest tyre manufacturer in the world. Being the pioneers of radial technology, in India it accounts for 75% of Indian Truck/Bus Radial production. Notably, it is the first and only tyre company to be awarded the ‘Superbrand’ status. With a distribution network of over 4000 dealers and over 120 stocking points, the company has presence across the length & breadth of the country. Besides, it has a strong global presence in over 80 countries across 6 continents offering a wide range of products backed by world class technology. Of late, it has even entered the retreading business under the brand ‘JK TREADS’. It also enjoys the highest market share in the off-the-road tyre market. Apart from regular expansion, the company is putting up a greenfield plant in Chennai for manufacture of 25 lakh car radials and 2 lakh Truck/Bus radial tyres per annum. On the other hand, it has been able to successfully turnaround its subsidiary ‘Tornel’ in Mexico, which it acquired in 2008. Book profits now & accumulate later.
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