Company reported net profit of JK Tyre roses to 4% in the quarter ended June 2018.
The company’s Q1FY19 (April-June) net profit stood at Rs 64.13 crore against loss of Rs 107.73 crore in
the same quarter last fiscal.
Revenue of the company was up 26% at Rs 2,439.52 crore against Rs 1,931.80 crore.
According to the statement of the Chairman and Managing Director of JK Tyre,Raghupati Singhania, “Increased volumes and internal efficiencies have helped to improve profitability. The company maintained its leadership in the fast growing Truck/Bus Radial segment,which witnessed further radialization in Q1”.
Profitability is likely to be under pressure With high debt levels. With recent correction in the stock price and strong Q1FY19 numbers, we recommends to accumulate with a target price of Rs 145.
According to Dolat Capital, the company is behind in passenger car and 2-wheeler segments, which are the most profitable segments. Q1FY19 has been strong but we feel that it will be early to infer any long-term trends from this performance.
At 09:40 hrs JK Tyre and Industries was quoting at Rs 127.35, up with Rs 2.70 or 2.17%.
The share touched its 52-week high with Rs 192.95 and 52-week low with Rs 116 on 12 February,2018 and 03 July,2018 respectively.
Currently, it is trading 34% below its 52-week high and 9.78% above its 52-week low.
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