JK Tyre shares zoom 14% as Q2 profit increases five-fold to Rs 249 crore
Meanwhile, on a consolidated basis, net revenue went up 4% to Rs 3,905 crore, from Rs 3,764 crore in Q2FY23. EBITDA (Earnings before interest, tax, depreciation and amortisation) increased to Rs 597 crore, as against Rs 305 crore in the year-ago period.
The margin for the quarter under review came at 15.11%, up from 7.91% in the year-ago period.
The tyre maker also approved an investment of Rs 1,025 crore for manufacturing capacity expansion.
The expansion is proposed to be funded by way of equity/internal accruals and debt.
Raghupati Singhania, Chairman & Managing Director, JK Tyre & Industries told ET that the company is planning fresh investments to increase capacity amid robust demand in the local market.
At 10.48 a.m., the scrip was trading 9.5% higher at Rs 337.6 on BSE. Meanwhile, the stock has also surged over 80% year-to-date, while it has delivered over 95% returns in the past one year.
As per Trendlyne data, the target price of JK Tyre is Rs 255, which shows a downside of 24% from the current market prices.
The consensus recommendation from 5 analysts for the stock is a 'Hold'.
Technically, the stock's day RSI (14) is in the medium range at 58.6. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed.
MACD is at 8.6, which is above its Center Line, but below signal line.
Shares of JK Tyre are also trading higher than the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs).
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