JK Tyre & Industries Limited

Consumer Cyclical — Auto Parts · NSE

₹338.75+₹0.95 (+0.28%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by moderate debt load, small-cap size, which brings sharper price swings, falling profits.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of JK Tyre & Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

JK Tyre & Industries Limited develops, manufactures, markets and distributes automotive tyres, tubes, flaps, and retreads in India, and internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Employees9,047

Annual revenue₹16,188 Cr

How does it make money?

Turns over ₹16,188 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 9,047 employees supports ₹1.79 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin12.9%

Net margin4.8%

Revenue / employee₹1.79 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

BOSCH LIMITEDP/E 56.9x · ROE 15.9%

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TVS MOTOR COMPANY LTDP/E 56.8x · ROE 35.8%

EICHER MOTORS LTDP/E 34.7x · ROE 23.0%

What is its competitive advantage?Little sign of one

Returns on capital of 13.9% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE13.9%

ROE12.8%

Peer median ROE23.0%

What is the outlook?

5 analysts covering the stock expect revenue to grow about 11.0% and earnings to grow about 76.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+11.0%

Est. earnings growth+76.5%

Analysts5

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +11% while net margin moved +165% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+11%

Margin effect+165%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.51 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

61/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

86/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

14.6x

3Y Median

22.4x

40 monthly readings · mean 23.2x · range 8.9x–49.5x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 35% below its 3y median of 22.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 68% below the peer median of 45.7x.

vs. its own history

Cheap

22.4x median over 40 months · -35%

vs. sector peers

Cheap

45.7x median of 4 peers · -68%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

14.6x

P/B

1.61x

EV/EBITDA

6.9x

PEG

0.34

Dividend Yield

1.18%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 9.1% to 12.9% over 3 years.
Return on equity is rising
ROE has improved from 7.7% to 12.8%.
Valuation below its historical average
At 14.6x the stock trades 35% below its own median of 22.4x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 41% against revenue growth of 11% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 watch

🟡Receivables growing faster than salesFinancial
Receivables up 41% against revenue up 11% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 9.1% to 12.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 35% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 68% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 41% against revenue up 11%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 3.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 11%✓ 12.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✓ 3.5x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 3.7% CAGR
Latest reported year was 2.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹20 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 7 neutral · 1 weak

Market Cap

₹9,766 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.6x

Cheap

Cheap against the generic band

P/B Ratio

1.61x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹23.17

Profitable

Profitable on a per-share basis

ROE

12.8%

Moderate

Moderate capital efficiency

ROCE

13.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.81x

Moderate

Moderate leverage

Revenue Growth (YoY)

2.0%

Modest

Modest growth

Profit Growth (YoY)

-74.3%

Falling

Profits are shrinking

Dividend Yield

1.18%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹20 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹338.75

P/E (Forward)

9.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

3.4%

Weak

Thin margins leave little room for error

Net Margin

4.0%

Average

Average bottom-line conversion

Current Ratio

1.34

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.51

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

340.4 / 360.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹14,520 Cr	₹14,869 Cr	₹14,543 Cr	₹16,188 Cr	+3.7%
EBITDA	₹1,319 Cr	₹2,128 Cr	₹1,671 Cr	₹2,085 Cr	+16.5%
EBITDA Margin	9.1%	14.3%	11.5%	12.9%	—
PAT (Net Profit)	₹262 Cr	₹786 Cr	₹509 Cr	₹776 Cr	+43.5%
EPS	₹10.64	₹29.74	₹17.86	₹27.24	+36.8%
ROE	7.7%	17.5%	10.2%	12.8%	—
ROCE	12.0%	19.7%	13.6%	13.9%	—
Total Debt	₹4,882 Cr	₹4,609 Cr	₹4,911 Cr	₹4,882 Cr	-0.0%
Free Cash Flow	₹761 Cr	₹840 Cr	₹77 Cr	₹20 Cr	-70.3%

🟢 Revenue has grown at 3.7% a year over 3 years.

🟢 EBITDA has grown at 16.5% a year over 3 years.

🟢 EBITDA Margin has risen from 9.1% to 12.9% over 3 years (+3.8 pts).

🟢 PAT (Net Profit) has grown at 43.5% a year over 3 years.

🟢 EPS has grown at 36.8% a year over 3 years.

🟢 ROE has risen from 7.7% to 12.8% over 3 years (+5.1 pts).

🟢 ROCE has risen from 12.0% to 13.9% over 3 years (+1.9 pts).

🟡 Total Debt has been broadly flat over 3 years (-0.0% a year).

🔴 Free Cash Flow has shrunk at 70.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹15,996 Cr

Total Liabilities

₹9,936 Cr

Total Debt

₹4,882 Cr

Cash & Equivalents

₹237 Cr

Operating Cash Flow

₹1,444 Cr

Capex

-₹1,424 Cr

Shareholding (proxy)

Institutional Holding

14.8%

Insider Holding

61.1%

Corporate Actions

Dividend Rate

₹4

Ex-Dividend Date

30 Jul 2026

Analyst Consensus

Recommendations

4 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹483.8

+42.8% vs CMP

Target Range

₹420 – ₹600

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 positive2 mixed2 negative1 general

JK Tyre & Industries (NSEI:JKTYRE) Stock Forecast & Analyst Predictions

Simply Wall Street, 05 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

JK Tyre Q4 FY26 results: net profit rises 80% on double-digit India volume growth

Goodreturns, 14 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

JK Tyre and Industries Share Price Target 2026: Rs 314 to 385

Univest, 05 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

JK Tyre receives ₹94.86 crore GST show cause notice for FY23

scanx.trade, 13 OctRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

JK Tyre & Industries Q1 results: Net profit down 73% at ₹44.09 crore

Business Standard, 07 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

JK Tyre & Industries Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate10.5/20

🟢Financial HealthStrong13.8/20

🟢GrowthStrong13.1/20

🟡ProfitabilityModerate8.5/15

🟢ValuationAttractive11.8/15

🟡RiskModerate4.9/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

This thesis breaks if

✓EBITDA margin holds above 11%12.9%
✗Debt / EBITDA stays below 2x2.3x
✓Interest cover stays above 3x3.5x
✗Revenue growth stays above 4% a year3.7% CAGR
✓Free cash flow remains positive₹20 Cr