JK Tyre To Invest Rs 1600 Crore In Tamil Nadu (23-Feb-2010)
The proposal of JK Tyre to set up a new production facility in Tamil Nadu was cleared by the government of Tamil Nadu.
This would attract investment of around Rs 1,600 crore. The new facility was expected to generate revenue of Rs 2,000 in 2013-14, according to company officials.
Moreover, the company also was making an investment of Rs 150 crore in Karanataka in order to expand its production capacity in truck radials.
the company has reported impressive quarterly profit after tax for the quarter ended December 2009 at Rs 36 crore. The net sales and operating profit (EBITDA) for the quarter are Rs 802 crore and Rs 97 crore respectively.
For the nine months period (April-December 2009), the company''s PAT stood at Rs 137 crore and net sales at Rs 2,644 crore.
According to Dr. Raghupati Singhania, Vice Chairman & Managing Director, " JK Tyres has recorded an impressive performance in the third quarter of the current year on account of cost reduction measures and better operating efficiencies. As a result, the operating profit margin has improved. Our expansions of OTR Tyre and Car radial shall be completed as per schedule by the end of March this year. The Green sight project for further increasing the TBR capacity from 8 lakh to 12 lakh and 25 lakh tyres for passenger car radials is progressing well"
The company expects demand for tyres to remain buoyant. With the completion of company''s expansion projects, the company looks to promising times ahead.
Meanwhile, JK Tyre will make an investment of Rs 1,200 crore in the next three-four years for capacity addition that includes setting up a new plant in Karnataka with an investment of Rs 800 crore.
JK Tyre is currently trading at Rs.173.25, down by 3.19%.
The stock hit an intraday high of Rs.175.5 till now, as against the 52-week high of Rs.187.2.The stock hit a low of Rs.172.5 during the day. The stock had hit a 52-week low of Rs.29 on March 2, 2009.
The stock opens at Rs.175.5 at BSE. The total traded volume of the scrip on BSE till now stood at 8746.
Meanwhile today, the BSE Sensex is trading up by 20.35 points, or 0.12% , at 16306.67 on 10:03 AM.
Meanwhile today, the NSE Nifty is trading up by 10.15 points, or 0.21% , at 4880.2.
JK TYRE has an equity capital of Rs 41.06 crore as of 2009 Dec. The face value per share is Rs 10. At the current price of Rs 173.25, the P/E multiple stood at 37.4003017891787 with book Value of 140.24 and P/BV at 1.24.
The total shareholding pattern of the company as on Dec 2009 stood at Promoters- 46.97%, Institutional Investors- 16.59%, General Public- 15.62% and other investors- 20.82%.
Considering the current price of Rs. 173.25 at 10:03:00 AM , the stock had outperformed the market over the past one month till 24/02/2010 surged 0.81% as compared to the Sensex''s return of -2.82% and NSE Nifty''s -2.82 % returns.
Considering the current price of Rs. 173.25 at 10:03:00 AM , the stock had outperformed the market over the past one quarter till 24/02/2010 surged 12.5% as compared to the Sensex''s return of -1.96% and NSE Nifty''s -1.96 % returns.
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