Shares of JK Tyre & Industries Ltd were trading almost flat in Tuesday's trade. The stock was last seen trading 0.02 per cent up at Rs 480.15. At this price, the scrip has gained around 20 per cent in the past one month.
Despite the mentioned rise, it was down 13.39 per cent from its one-year high price of Rs 554.35, a level seen earlier this year on February 5.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said tyre stocks have been in an uptrend due to high automobile sales.
"We are also witnessing a lot of premiumisation in tyre counters. Investors can hold on to these stocks as valuations still look attractive, including that of JK Tyre. One can add these counters on every dip," Bathini stated.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "The stock has potential to revisit its 52-week high levels. On the lower end, Rs 450-440 is likely to cushion any short-term blip in the counter."
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "The stock can hit an upside target of Rs 550 in the near term. Keep stop loss placed at Rs 480."
The counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 69.79. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The company's stock has a price-to-equity (P/E) ratio of 21.19 against a price-to-book (P/B) value of 3.21. Earnings per share (EPS) stood at 22.66 with a return on equity of (RoE) 15.16.
As of March 2024, promoters held a 53.13 per cent stake in the company.