Views on JK Tyres 2QFY2016 Results: Angel Broking

Views of Mr. Bharat Gianani (Sr. Research Analyst - Automobile, Angel Broking) on JK Tyres 2QFY2016 Results:

"JK Tyres 2QFY2016 results were in line with our estimates on the operating front; however forex loss led to lower than an estimated profitability. JK Tyres revenues expectedly declined 3% yoy to INR 1,810 cr (our estimate was INR 1,818 cr) owing to subdued demand in the truck replacement market, increased imports from China and price cuts to pass on the lower raw material prices. Operating margins at 17% improved sharply 460 bp YoY primarily due to softness in the raw material prices. The margins met our estimates of 16.6%. EBIDTA at INR 307 cr was in line with our expectation of INR 303 cr. However, forex losses of Rs 29 cr lead to the profitability missing our estimates. Net Profit at INR 118 cr was below our estimates of INR 130 cr. We maintain our NEUTRAL rating on the stock."

Shares of JK TYRE & INDUSTRIES LTD. was last trading in BSE at Rs.105.7 as compared to the previous close of Rs. 104.95. The total number of shares traded during the day was 447318 in over 4446 trades.

The stock hit an intraday high of Rs. 107 and intraday low of 104.1. The net turnover during the day was Rs. 47380759.

Source : Equity Bulls

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