India's JK Tyre Q4 profit rises on sustained demand

JK Tyre & Industries

21/05/2024 13:13

BENGALURU, May 21 (Reuters) - India's JK Tyre and Industries  JKIN.NS  reported a 56.2% rise in
fourth-quarter profit on Tuesday, helped by sustained demand.
    Consolidated net profit rose for the sixth straight quarter to 1.69 billion rupees ($20.29 million) for
the three months ended March 31 from 1.08 billion rupees a year earlier. 
    Revenue from operations rose 1.8% to 36.98 billion rupees.
    
    For further earnings highlights, click (Full Story)
    
KEY CONTEXT
    Analysts said prices of natural rubber, a key raw material for tyre manufacturers, have risen in the
January-March period, which has historically been a strong quarter for the over $11 billion turnover tyre
industry.
    Meanwhile, sales of vehicles in India during the three months to March 31 rose more than 20%
year-on-year, aiding autoparts makers like JK Tyre and Industries.
    Larger peers MRF  MRF.NS  and CEAT  CEAT.NS  reported lower fourth-quarter profits.
    
  
    
PEER COMPARISON
    
                              Valuation (next   Estimates (next 12   Analysts' sentiment              
                              12 months)        months)                                               
                   RIC        PE       EV/EBIT  Revenue    Profit    Mean      # of      Stock to     Div
                                       DA       growth %   growth %  rating *  analysts  price        yield
                                                                                         target **    (%)
 JK Tyre &          JKIN.NS   10.81    6.31     8.43       15.93     HOLD      4         0.69         0.38
 Industries Ltd                                                                                       
 MRF Ltd            MRF.NS    25.81    12.73    8.21       1.67      SELL      7         1.18         0.14
 CEAT Ltd           CEAT.NS   14.09    6.67     10.33      1.88      BUY       14        0.85         0.50
 Apollo Tyres Ltd   APLO.NS   15.63    7.45     8.10       10.70     BUY       24        0.94         0.82
 
* The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is
trading above the PT
    
JANUARY-MARCH STOCK PERFORMANCE

   
             
    
    
    
    
-- All data from LSEG
    
-- $1 = xx Indian rupees
    
    


($1 = 83.2920 Indian rupees)

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JK Tyre Q4 stock performance    https://tmsnrt.rs/3V3B8Ky
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 (Reporting by Meenakshi Maidas in Bengaluru; Editing by Sohini Goswami)
 ((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))