Sunday, February 3, 2008

JK Tyres & Industries Ltd, Buy

JK Tyres & Industries Ltd, Buy

CMP: Rs 134 Target Price: Rs 171

Q1 2007-08 Result Update

JK Tyre & Industries Ltd (JKI) saw its top line grow by 9.9%YoY in line with our expectations. Slowdown in OEM segment has kept the volume growth in check however, replacement market has shown positive signs. OPM came in at 10.3% much higher than 7.6% as at the end of Q1 2006-07. PAT came in higher by 166.1% due top the spurt in operating margins. We believe the company’s expansions are well timed and will yield positive results. We continue to remain positive on the company.

FINQ, February 1, 2008

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