Cheaper valuation makes this tyre stock more attractive


On the export front, the anti-dumping duty levied by the US on tyres imported from China, Taiwan and Thailand is favourable to the company.

Synopsis

The company has put capital expenditure on hold as it plans to use the operating cash flow to reduce debt from the Rs 4,368 crore as of September 2020. It expects to reduce debt by 40-45% or by Rs 1,400-1,500 crore over the next two-three years.

ET Intelligence Group: Despite 22% gain over the past three months, the stock of JK Tyre & Industries continues to trade at a discount compared with peers. The valuation gap may however narrow in the near future given the rising replacement demand for truck tyres, focus on increasing exports and plans to reduce debt.The company earns nearly 70% revenue from the replacement market, primarily truck tyres. The demand in this segment has started

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