Shares of JK Tyre & Industries Ltd surged in Thursday's trade after the company posted strong set of numbers in the second-quarter (Q2 FY24). The stock jumped 13.94 per cent to hit its 52-week high of Rs 351.05. At this price, the multibagger scrip has gained 147.83 per cent from its one-year low of Rs 141.65, a level seen on March 20 this year.
The tyremaker's consolidated net profit soared five-fold to Rs 249 crore during the September quarter as against Rs 50 crore in the year-ago period. Net revenues in the second-quarter increased to Rs 3,905 crore from Rs 3,764 crore in the corresponding period last year.
"The sustained thrust on larger market presence enabled to boost volumes across segments and product categories. The strategic focus on enrichment of product mix across the entire radial range across segments has had a positive outcome. Cost compression and the ongoing efforts to enhance internal efficiencies remain the bedrock of our operations," said JK Tyre Chairman and Managing Director Raghupati Singhania.
We hope to continue with strong performance going forward as well owing to a robust economy in the country, he added.
In addition, JK Tyre said its board has approved enhancing manufacturing capacity by 19.45 per cent by October 2025. The company currently has a manufacturing capacity of 155.11 lakh tyres per annum with a capacity utilisation of 95 per cent.
On BSE, around 4.96 lakh shares changed hands today at the time of writing this story. The figure was way more than the two-week average volume of 1.13 lakh shares. Turnover on the counter stood at Rs 16.96 crore, commanding a market capitalisation (m-cap) of Rs 8,176.10 crore. There were 88,897 sell orders compared to buy orders of 57,575 shares.
On technical setup, the counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 68.67. 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 29.49 against a price-to-book (P/B) value of 2.63.
The scrip has an analyst target price of Rs 255, Trendlyne data showed, suggesting a potential downside of 23 per cent in a year. It has a one-year beta of 1.19, indicating high volatility on the counter.
Meanwhile, Indian equity benchmarks rose sharply in today's deals, led by gains across all sectors.
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