JK Tyre & Industries Ltd.
ISIN: INE573A01042 • Market Cap: ₹10,811 Cr
The 5-Pillar Quality Audit for JK Tyre & Industries Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (11.5%), Return on Capital Employed (15.4%), and equity compounding (12.8%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.78 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (3.0%) and 3Y PAT CAGR (-5.6%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 16.60 vs PEG of 1.02 and Dividend Yield of 1.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 51.7%, backed by 23.0% institutional ownership.
Key Fundamental Strengths
Attractive Valuation Margin (P/E: 16.60)
Trading at a P/E multiple of 16.60, the stock offers a favourable risk-reward entry for quality compounding.
Consistent Market Standing (Mid Cap)
Established player in the Automobile and Auto Components sector with an overall fundamental quality score of 60/100.
Areas to Watch & Potential Risks
Topline Stagnation (3Y Sales CAGR: 3.0%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Sectoral & Macro Headwinds (Automobile and Auto Components)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Automobile and Auto Components space.
Quantitative Strategy Eligibility
Checking JKTYRE against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 60/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Automobile and Auto Components Sector Peer Comparison
Compare JKTYRE directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| JK Tyre & Industries Ltd. (JKTYRE)Current | 60/100 | ₹10,811 Cr | 16.60 | 15.4% | 0.78 | — |
| Maruti Suzuki India Ltd. (MARUTI) | 71/100 | ₹4.30 Lakh Cr | 30.02 | 15.6% | 0.00 | View |
| Mahindra & Mahindra Ltd. (M&M) | 72/100 | ₹4.24 Lakh Cr | 22.97 | 16.6% | 1.43 | View |
| Bajaj Auto Ltd. (BAJAJ-AUTO) | 77/100 | ₹3.22 Lakh Cr | 27.34 | 25.4% | 0.57 | View |
| Eicher Motors Ltd. (EICHERMOT) | 74/100 | ₹2.19 Lakh Cr | 37.86 | 23.7% | 0.01 | View |
| TVS Motor Company Ltd. (TVSMOTOR) | 68/100 | ₹2.07 Lakh Cr | 60.46 | 29.9% | 3.31 | View |
Frequently Asked Questions: JK Tyre & Industries Ltd.
Q:What is the 5-Pillar Fundamental Score for JK Tyre & Industries Ltd. (JKTYRE)?
JK Tyre & Industries Ltd. has a RupeeTools Fundamental Score of 60/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (64/100), Financial Health (63/100), Growth (28/100), Valuation (77/100), and Ownership Quality (78/100).
Q:Is JKTYRE fundamentally strong for long-term investment?
JKTYRE currently holds a moderate quality rating of 60/100. While it operates in the Automobile and Auto Components sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does JKTYRE pass the Coffee Can Investing filter?
No. JKTYRE does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does JKTYRE compare against other Automobile and Auto Components peers?
Within India's Automobile and Auto Components sector, JKTYRE trades at a P/E of 16.60 and generates an ROCE of 15.4%. Compare its 5-Pillar score of 60/100 against top sector peers like Maruti Suzuki India Ltd. (71/100), Mahindra & Mahindra Ltd. (72/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.