Categories

10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Please note

Note: The artciles are not research reports but assimilation of information available on public domain and it should not be treated as a research report.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Disclosure: It is safe to assume that I might have the dkiscussed companies in my portfolio and hence my point of view can be biased.Readers should consult registered consultants before making any investments
.

Archives : Old artciles

Thursday, December 17, 2009

JK Tyre & Industries Ltd:Future growth prospects and outlook,why its moving?Target price?latest news and buy/sell/hold?

Scripscan:JK Tyre & Industries Ltd
Code:530007
cmp:150

Story:JK Tyre & Industries Limited engages in the manufacture and distribution of tires, tubes, and flaps for the transportation industry primarily in India and Mexico. The company offers tires for trucks, buses, light commercial vehicles, passenger vehicles, and farm vehicle tires. It also provides truck radials, car radials, and off the road tires. In addition, the company franchises retail stores under the JK Tyre Steel Wheels brand name. It exports its products to the United States, Europe, South America, and the Middle East. The company was formerly known as J.K. Industries Limited and changed its name to JK Tyre & Industries Limited in April 2007 in order to capture the brand ‘JK Tyre’ and its value in the company’s name.Despite concerns on account of spiraling raw material prices and strike at its Rajasthan plant, we find JK Tyres (JKT) an attractive valuation pick. We are factoring in a sharp drop of 27% in our FY11 consolidated earnings estimates to Rs 38.5 per share. For standalone business, we expect a 25% decline in FY11 earnings to Rs 30 per share. For its subsidiary, 'Tornel' we expect a 41% earnings decline in FY11 to Rs 8.5 per share. We are conservative in our estimates on Tornel due to limited availability of information.Despite such a sharp drop in FY11E earnings, at CMP of Rs 150, the stock trades at a PER, EV/EBIDTA and P/B of 3.9x, 4.2x and 0.7x respectively. We believe that there is ample scope for positive surprises - like commencement of new TBR capacity from October 2009, increase in PCR capacity by 10% to 5 mn tyres in FY11, price hikes to pass on the cost pressures. Similarly for Tornel, higher capacity utilization is likely to result in positive surprises. We are not assuming any significant increase in capacity utilization at the current juncture. We initiate coverage on the stock with a Buy rating and a target price of Rs 192.

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: arunsharemarket@gmail.com Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
 
x

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner