JK Tyre Shares Rally 14% After Net Profit Rises 398% In Q2; Details – News18

JK Tyre Shares At One-Year High: JK Tyre shares jumped 14 per cent on the corporate’s robust operational efficiency within the September quarter (Q2FY24) and surpassed its earlier excessive of Rs 344 touched on October 17. At this worth, the multibagger scrip has gained 147.83 per cent from its one-12 months low of Rs 141.65, a degree seen on March 20 this 12 months.

The tyremaker’s consolidated web revenue soared 5-fold to Rs 249 crore in the course of the September quarter as in opposition to Rs 50 crore within the 12 months-in the past interval. Net revenues within the second-quarter elevated to Rs 3,905 crore from Rs 3,764 crore within the corresponding interval final 12 months.

Sensing the market demand, the corporate introduced a recent capex of Rs 1,025 crore to be commissioned by October 2025.

The above challenge is proposed to be funded by the use of fairness/inside accruals and debt. The board additionally accredited fund elevating as much as Rs 500 crore by the use of certified establishments placement (QIP) or different permissible mode.

JK Tyre mentioned the lndian auto business is witnessing good development, which is anticipated to proceed for a while. This offers a possibility to extend its market presence additional within the automotive tyre market, the corporate mentioned.

Earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) rose 95.7 per cent YoY at Rs 589 crore with corresponding EBITDA margin at 15.1 per cent, up 718 bps YoY.

Consolidated turnover have been up 4 per cent 12 months-on-12 months (YoY) at Rs 3,905 crore.

The sustained thrust on bigger market presence enhance volumes throughout segments and product classes. The strategic give attention to enrichment of product combine throughout all the Radial vary, PCR/LTR/TBR has had constructive end result, the administration mentioned.

The firm posted wholesome money circulate from working actions in H1FY24 at Rs 1065 crore with consequent free money circulate and discount in gross debt pegged at round Rs 700 crore and Rs 450 crore respectively.

On technical setup, the counter was buying and selling larger than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day easy transferring averages (SMAs). The counter’s 14-day relative energy index (RSI) got here at 68.67. A degree beneath 30 is outlined as oversold whereas a worth above 70 is taken into account overbought. The firm’s inventory has a worth-to-fairness (P/E) ratio of 29.49 in opposition to a worth-to-e-book (P/B) worth of two.63.

The scrip has an analyst goal worth of Rs 255, Trendlyne knowledge confirmed, suggesting a possible draw back of 23 per cent in a 12 months. It has a one-12 months beta of 1.19, indicating excessive volatility on the counter.

Meanwhile, Indian fairness benchmarks rose sharply in as we speak’s offers, led by positive aspects throughout all sectors.

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