BENGALURU (Reuters) – India’s JK Tyre and Industries 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.
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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 and CEAT 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 & 10.81 6.31 8.43 15.93 HOLD 4 0.69 0.38
Industries Ltd
MRF Ltd 25.81 12.73 8.21 1.67 SELL 7 1.18 0.14
CEAT Ltd 14.09 6.67 10.33 1.88 BUY 14 0.85 0.50
Apollo Tyres Ltd 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)
(Reporting by Meenakshi Maidas in Bengaluru; Editing by Sohini Goswami)
