ABOUT THE COMPANY
JK Tyre has five Modern plants in India which are strategically located at Mysore, Karnataka (3) ,Banmore, Madhya Pradesh and Kankroli, Rajasthan .
JK Tyre pioneered radial technology in India way back in 1977, and is the Radial Leader in the country being the only tyre manufacturer offering the entire range of 4 wheeler radials i.e. for Trucks & Buses, LCVs, Cars and Farm.
The company has operations in in 77 countries across 6 continents offering a wide range of products backed by world class technology. JK Tyre enjoys a premium brand status in various advanced markets, including the USA and Australia.
ABOUT THE FINANCIALS
JK Tyre pioneered radial technology in India way back in 1977, and is the Radial Leader in the country being the only tyre manufacturer offering the entire range of 4 wheeler radials i.e. for Trucks & Buses, LCVs, Cars and Farm.
The company has operations in in 77 countries across 6 continents offering a wide range of products backed by world class technology. JK Tyre enjoys a premium brand status in various advanced markets, including the USA and Australia.
ABOUT THE FINANCIALS
Due to hike in basic raw material price , ie.e rubber the performance from the entire industry has been poor on account of reduction in margin levels.Though the com,The company has somnehow managed to show a better then expected results. For Q3FY11, the company’s NPM fell on a QoQ from 1.77% to 0.78%. At Rs.9.14 crore, the company posted it’s lowest ever quarterly net profit. The company hiked its prices by 2-4% in Jan 2011.
TOP STORIES IN THE COUNTER
TOP STORIES IN THE COUNTER
1. With the ease in raw material prices (Rubber) hopes in this counter has been regained on account of rising margin levels.
2. The current fall is on account of the catastrophe in Japan and margins will ease only if prices remain low.
3. JK Tyre & Industries was up over 6% yesterday and during the day, it actually hit the three digit mark at Rs.100.80. Around 16,000 buyers remained on the counter compared to just around 4600 sellers.
The local price of the benchmark grade, RSS-4, fall down to Rs.185 a kg in the spot market from the closing rate of Rs.201 on Friday though a month ago it was priced at Rs.240/kg,(Highest ever).
MY VIEW
As it could be summarized from the above discussion that the margin level of the company is suppose to grow on account of reduction in basic raw material prices , so we hope a better results in coming quarters. Short term trade with stop loss could be done in this stock.
The local price of the benchmark grade, RSS-4, fall down to Rs.185 a kg in the spot market from the closing rate of Rs.201 on Friday though a month ago it was priced at Rs.240/kg,(Highest ever).
MY VIEW
As it could be summarized from the above discussion that the margin level of the company is suppose to grow on account of reduction in basic raw material prices , so we hope a better results in coming quarters. Short term trade with stop loss could be done in this stock.
