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JK Tyre & Industries

NSEI:JKTYRE
Snowflake Description

Undervalued average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
JKTYRE
NSEI
₹23B
Market Cap
  1. Home
  2. IN
  3. Automobiles
Company description

JK Tyre & Industries Limited develops, manufactures, markets, and distributes tyres, tubes, and flaps in India and Mexico. The last earnings update was 63 days ago. More info.


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JKTYRE Share Price and Events
7 Day Returns
-0.2%
NSEI:JKTYRE
2.1%
IN Auto Components
1.7%
IN Market
1 Year Returns
-43.7%
NSEI:JKTYRE
-21.5%
IN Auto Components
0.1%
IN Market
JKTYRE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
JK Tyre & Industries (JKTYRE) -0.2% -1.5% -8.4% -43.7% 7% 117.6%
IN Auto Components 2.1% -1% -2.3% -21.5% 33.4% 139.8%
IN Market 1.7% 2.7% 5.8% 0.1% 41.6% 73.3%
1 Year Return vs Industry and Market
  • JKTYRE underperformed the Auto Components industry which returned -21.5% over the past year.
  • JKTYRE underperformed the Market in India which returned 0.1% over the past year.
Price Volatility
JKTYRE
Industry
5yr Volatility vs Market

Value

 Is JK Tyre & Industries undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of JK Tyre & Industries to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for JK Tyre & Industries.

NSEI:JKTYRE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 24.8%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:JKTYRE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Auto Components Unlevered Beta Simply Wall St/ S&P Global 1.16
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.157 (1 + (1- 35%) (236.37%))
2.297
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (2 * 8.6%)
24.75%

Discounted Cash Flow Calculation for NSEI:JKTYRE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for JK Tyre & Industries is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:JKTYRE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 24.75%)
2019 4,211.00 Analyst x1 3,375.55
2020 8,351.50 Analyst x2 5,366.40
2021 9,403.00 Analyst x1 4,843.34
2022 9,010.41 Est @ -4.18% 3,720.34
2023 8,951.15 Est @ -0.66% 2,962.62
2024 9,112.69 Est @ 1.8% 2,417.70
2025 9,434.21 Est @ 3.53% 2,006.42
2026 9,880.89 Est @ 4.73% 1,684.50
2027 10,432.18 Est @ 5.58% 1,425.64
2028 11,075.91 Est @ 6.17% 1,213.32
Present value of next 10 years cash flows ₹29,015.83
NSEI:JKTYRE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹11,075.91 × (1 + 7.55%) ÷ (24.75% – 7.55%)
₹69,256.61
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹69,256.61 ÷ (1 + 24.75%)10
₹7,586.75
NSEI:JKTYRE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹29,015.83 + ₹7,586.75
₹36,602.58
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹36,602.58 / 246.23
₹148.65
NSEI:JKTYRE Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:JKTYRE represents 0.99945x of BSE:530007
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99945x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 148.65 x 0.99945
₹148.57
Value per share (INR) From above. ₹148.57
Current discount Discount to share price of ₹91.65
= -1 x (₹91.65 - ₹148.57) / ₹148.57
38.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price JK Tyre & Industries is available for.
Intrinsic value
38%
Share price is ₹91.65 vs Future cash flow value of ₹148.57
Current Discount Checks
For JK Tyre & Industries to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • JK Tyre & Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • JK Tyre & Industries's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for JK Tyre & Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are JK Tyre & Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:JKTYRE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹12.69
BSE:530007 Share Price ** BSE (2019-04-18) in INR ₹91.7
India Auto Components Industry PE Ratio Median Figure of 100 Publicly-Listed Auto Components Companies 15.91x
India Market PE Ratio Median Figure of 2,735 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of JK Tyre & Industries.

NSEI:JKTYRE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:530007 Share Price ÷ EPS (both in INR)

= 91.7 ÷ 12.69

7.23x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • JK Tyre & Industries is good value based on earnings compared to the IN Auto Components industry average.
  • JK Tyre & Industries is good value based on earnings compared to the India market.
Price based on expected Growth
Does JK Tyre & Industries's expected growth come at a high price?
Raw Data
NSEI:JKTYRE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.23x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
24.2%per year
India Auto Components Industry PEG Ratio Median Figure of 36 Publicly-Listed Auto Components Companies 1.31x
India Market PEG Ratio Median Figure of 584 Publicly-Listed Companies 1.33x

*Line of best fit is calculated by linear regression .

NSEI:JKTYRE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.23x ÷ 24.2%

0.3x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • JK Tyre & Industries is good value based on expected growth next year.
Price based on value of assets
What value do investors place on JK Tyre & Industries's assets?
Raw Data
NSEI:JKTYRE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹90.98
BSE:530007 Share Price * BSE (2019-04-18) in INR ₹91.7
India Auto Components Industry PB Ratio Median Figure of 111 Publicly-Listed Auto Components Companies 2.05x
India Market PB Ratio Median Figure of 3,626 Publicly-Listed Companies 1.12x
NSEI:JKTYRE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:530007 Share Price ÷ Book Value per Share (both in INR)

= 91.7 ÷ 90.98

1.01x

* Primary Listing of JK Tyre & Industries.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • JK Tyre & Industries is good value based on assets compared to the IN Auto Components industry average.
X
Value checks
We assess JK Tyre & Industries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto Components industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto Components industry average (and greater than 0)? (1 check)
  5. JK Tyre & Industries has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is JK Tyre & Industries expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
24.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is JK Tyre & Industries expected to grow at an attractive rate?
  • JK Tyre & Industries's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • JK Tyre & Industries's earnings growth is expected to exceed the India market average.
  • JK Tyre & Industries's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:JKTYRE Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:JKTYRE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 24.2%
NSEI:JKTYRE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 11.1%
India Auto Components Industry Earnings Growth Rate Market Cap Weighted Average 16.4%
India Auto Components Industry Revenue Growth Rate Market Cap Weighted Average 11%
India Market Earnings Growth Rate Market Cap Weighted Average 18.7%
India Market Revenue Growth Rate Market Cap Weighted Average 11.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:JKTYRE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:JKTYRE Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 127,390 10,203 3,154 1
2020-03-31 114,415 11,312 4,304 3
2019-03-31 102,568 5,606 2,044 2
NSEI:JKTYRE Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 99,480 2,881
2018-09-30 93,405 2,724
2018-06-30 89,050 2,379
2018-03-31 82,721 6,374 660
2017-12-31 81,406 95
2017-09-30 78,550 847
2017-06-30 77,152 1,674
2017-03-31 76,894 1,057 3,754
2016-12-31 73,241 4,065
2016-09-30 70,903 4,313
2016-06-30 69,675 4,470
2016-03-31 68,982 9,030 4,673

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • JK Tyre & Industries's earnings are expected to grow significantly at over 20% yearly.
  • JK Tyre & Industries's revenue is expected to grow by 11.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:JKTYRE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from JK Tyre & Industries Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:JKTYRE Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31
2020-03-31 20.25 22.00 16.94 3.00
2019-03-31 11.18 12.36 10.00 2.00
NSEI:JKTYRE Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 12.69
2018-09-30 12.02
2018-06-30 10.49
2018-03-31 2.91
2017-12-31 0.42
2017-09-30 3.73
2017-06-30 7.38
2017-03-31 16.55
2016-12-31 17.93
2016-09-30 19.02
2016-06-30 19.71
2016-03-31 20.60

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • JK Tyre & Industries is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess JK Tyre & Industries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
JK Tyre & Industries has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has JK Tyre & Industries performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare JK Tyre & Industries's growth in the last year to its industry (Auto Components).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • JK Tyre & Industries's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • JK Tyre & Industries's 1-year earnings growth exceeds its 5-year average (2942.6% vs -9.6%)
  • JK Tyre & Industries's earnings growth has exceeded the IN Auto Components industry average in the past year (2942.6% vs 25.6%).
Earnings and Revenue History
JK Tyre & Industries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from JK Tyre & Industries Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:JKTYRE Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 99,480.20 2,881.30 10,990.40
2018-09-30 93,404.90 2,724.20 10,601.40
2018-06-30 89,050.10 2,379.00 10,118.40
2018-03-31 82,721.00 660.40 10,045.80
2017-12-31 81,406.20 94.70 9,388.70
2017-09-30 78,550.30 846.90 9,615.60
2017-06-30 77,152.30 1,674.10 8,479.60
2017-03-31 76,893.70 3,754.00 9,948.60
2016-12-31 73,240.70 4,065.20 10,137.30
2016-09-30 70,902.90 4,313.00 9,951.00
2016-06-30 69,674.90 4,469.90 9,717.40
2016-03-31 68,982.30 4,673.10 8,955.90
2015-12-31 70,138.90 4,529.90 12,714.90
2015-09-30 72,345.50 4,341.60 12,504.80
2015-06-30 72,967.30 3,923.40 7,413.90
2015-03-31 73,837.10 3,296.60 8,588.30
2014-12-31 78,207.50 3,066.50 12,366.50
2014-09-30 76,984.10 2,738.70 12,320.30
2014-06-30 76,387.40 2,632.00 7,533.20
2014-03-31 76,517.60 2,630.20 12,276.90
2013-12-31 71,500.10 2,596.80 10,432.80
2013-09-30 71,149.40 2,385.80 10,252.10
2013-06-30 70,453.20 2,421.20 9,978.50
2013-03-31 69,852.30 2,033.00 9,599.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • JK Tyre & Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • JK Tyre & Industries used its assets less efficiently than the IN Auto Components industry average last year based on Return on Assets.
  • JK Tyre & Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess JK Tyre & Industries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto Components industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
JK Tyre & Industries has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is JK Tyre & Industries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up JK Tyre & Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • JK Tyre & Industries's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • JK Tyre & Industries's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of JK Tyre & Industries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from JK Tyre & Industries Company Filings, last reported 3 months ago.

NSEI:JKTYRE Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 21,996.20 53,864.50 3,798.80
2018-09-30 21,996.20 53,864.50 3,798.80
2018-06-30 21,031.10 58,112.80 1,323.90
2018-03-31 21,031.10 58,112.80 1,323.90
2017-12-31 19,398.80 53,411.60 2,533.10
2017-09-30 19,398.80 53,411.60 2,533.10
2017-06-30 21,097.90 53,760.60 6,256.80
2017-03-31 21,097.90 56,546.50 4,497.90
2016-12-31 20,100.00 51,999.50 3,136.90
2016-09-30 20,100.00 51,999.50 3,136.90
2016-06-30 17,484.80 29,095.10 1,544.50
2016-03-31 17,514.30 28,998.10 1,711.60
2015-12-31 16,166.50 27,961.50 2,326.40
2015-09-30 16,166.50 27,961.50 2,326.40
2015-06-30 14,010.10 27,094.20 1,995.90
2015-03-31 14,010.10 29,747.80 1,995.90
2014-12-31 12,090.20 22,984.30 1,960.70
2014-09-30 12,090.20 22,984.30 1,960.70
2014-06-30 10,971.20 25,059.90 2,488.70
2014-03-31 10,971.20 27,046.90 2,488.70
2013-12-31 10,506.20 23,169.30 1,460.50
2013-09-30 10,506.20 23,169.30 1,460.50
2013-06-30 9,064.50 27,033.50 1,401.00
2013-03-31 9,064.50 27,033.50 1,401.00
  • JK Tyre & Industries's level of debt (244.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (220.8% vs 244.9% today).
  • Debt is not well covered by operating cash flow (11.8%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.9x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess JK Tyre & Industries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. JK Tyre & Industries has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is JK Tyre & Industries's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.64%
Current annual income from JK Tyre & Industries dividends. Estimated to be 2.92% next year.
If you bought ₹2,000 of JK Tyre & Industries shares you are expected to receive ₹33 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • JK Tyre & Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.49%).
  • JK Tyre & Industries's dividend is below the markets top 25% of dividend payers in India (1.92%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:JKTYRE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
India Auto Components Industry Average Dividend Yield Market Cap Weighted Average of 77 Stocks 0.8%
India Market Average Dividend Yield Market Cap Weighted Average of 1399 Stocks 1.3%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:JKTYRE Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 2.40 1.00
2020-03-31 2.77 3.00
2019-03-31 2.20 3.00
NSEI:JKTYRE Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-05-17 1.500 1.419
2017-05-15 2.500 1.602
2016-08-09 2.500 1.922
2015-08-27 1.500 1.629
2015-05-14 1.500 1.504
2014-09-01 1.000 0.919
2014-05-28 1.000 1.734
2013-09-16 0.700 2.415
2012-07-04 0.500 2.340
2011-07-04 0.600 3.871
2010-05-25 0.700 2.794
2009-06-01 0.540 2.140
2009-04-20 0.540 4.841

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of JK Tyre & Industries's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (8.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (6.8x coverage).
X
Income/ dividend checks
We assess JK Tyre & Industries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can JK Tyre & Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. JK Tyre & Industries has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of JK Tyre & Industries's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Raghupati Singhania
COMPENSATION ₹58,300,000
AGE 72
TENURE AS CEO 44 years
CEO Bio

Dr. Raghupati Singhania, B.Sc., has been the Managing Director of JK Tyre & Industries Limited since April 1975 and has been its Chairman of the Board since May 27, 2013. Dr. Singhania has over 40 years experience in managing various industries including those engaged in the business of automotive tyres and tubes, power transmission, v-belts, conveyor belt, automotive belts, oil seals, industrial electronics, material handling systems, bulk drugs and hybrid seeds. Dr. Singhania serves as the Chairman of Fenner (India) Limited. He served as Vice Chairman of JK Tyre & Industries Ltd., from September 2003 to May 27, 2013. Dr. Singhania has been an Executive director of JK Tyre & Industries Ltd., since May 1967 and Non-Executive Director at Bengal & Assam Company Ltd. since February 2, 2009. He has been a Non Independent & Non Executive Director at JK Lakshmi Cement Limited (formerly, JK Corp. Ltd.) since June 4, 1991. He serves as a Director of J K Corp. Limited. He serves as a Non Executive Director of JK Agri Genetics Ltd., Seeds Division. He has been a Non-Executive Independent Director of Radico Khaitan Ltd. since January 28, 2003. He serves as a Director at DCM Engineering Limited, Henry F. Cockill & Sons Limited, Radical Agro Products Pvt. Limited, RPS Securities Pvt. Ltd., Sunrise Hold Co Mexico, S.A. de C.V. and Empresas Tornel, S.A. de C.V. Dr. Singhania served as the President of the PHD Chamber of Commerce and Industry. He has been a Non-Executive Director of JK Agri Genetics Ltd. since March 30, 2013. He is associated with a number of institutes in the field of medical research and education, besides being associated with serving trade and industrial bodies such as the CI , ASSOCHAM and CAPAXIL in various capacities. He is Member of National Council of CII. He serves as the Chairman of the Automotive Tyre Manufacturers Association. He is a Fellow of the Institute of Directors, London. He has been conferred with an honorary Doctorate in Science by the Mohanlal Sukhadia University, Udaipur for his outstanding contribution in education, training and research in the field of elastomer, polymers and tyres. Dr. Singhania holds a Bachelor's degree in Science from the University of Calcutta.

CEO Compensation
  • Raghupati's compensation has been consistent with company performance over the past year.
  • Raghupati's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the JK Tyre & Industries management team in years:

2.2
Average Tenure
69.5
Average Age
  • The tenure for the JK Tyre & Industries management team is about average.
Management Team

Raghupati Singhania

TITLE
Chairman & MD
COMPENSATION
₹58M
AGE
72
TENURE
44 yrs

Bharat Singhania

TITLE
MD & Executive Director
COMPENSATION
₹7M
AGE
80

Arun Bajoria

TITLE
President of International Operations
COMPENSATION
₹40M
AGE
72
TENURE
3.8 yrs

Pawan Rustagi

TITLE
VP of Legal
COMPENSATION
₹11M
AGE
62

Anshuman Singhania

TITLE
Whole-Time Director
COMPENSATION
₹22M

Sanjeev Aggarwal

TITLE
Chief Financial Officer
TENURE
0.2 yrs

Virendra Misra

TITLE
Technical Director
COMPENSATION
₹5M
AGE
67

Sanjay Sharma

TITLE
Head of Corporate Communications and Motor Sport

Vikram Malhotra

TITLE
Marketing Director
TENURE
2.2 yrs

Rajiv Prasad

TITLE
President of India Operations
AGE
54
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the JK Tyre & Industries board of directors in years:

8.1
Average Tenure
68
Average Age
  • The tenure for the JK Tyre & Industries board of directors is about average.
Board of Directors

Bharat Singhania

TITLE
MD & Executive Director
COMPENSATION
₹7M
AGE
80
TENURE
31.4 yrs

Arun Bajoria

TITLE
President of International Operations
COMPENSATION
₹40M
AGE
72
TENURE
9.3 yrs

Anshuman Singhania

TITLE
Whole-Time Director
COMPENSATION
₹22M
TENURE
3.1 yrs

Bakul Jain

TITLE
Independent Director
COMPENSATION
₹2M
AGE
63
TENURE
30.2 yrs

Raghupati Singhania

TITLE
Chairman & MD
COMPENSATION
₹58M
AGE
72
TENURE
5.9 yrs

Arvind Mewar

TITLE
Independent Director
COMPENSATION
₹2M
AGE
73
TENURE
44 yrs

Kalpataru Tripathy

TITLE
Independent Director
COMPENSATION
₹1M
AGE
46
TENURE
8.5 yrs

Vimal Bhandari

TITLE
Independent Director
COMPENSATION
₹1M
AGE
60
TENURE
7.8 yrs

Wolfgang Holzbach

TITLE
Independent Director
COMPENSATION
₹1M
AGE
68
TENURE
6.4 yrs

Sunanda Singhania

TITLE
Non-Executive Non-Independent Director
COMPENSATION
₹1M
AGE
66
TENURE
4.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
04. Apr 19 Buy Bengal & Assam Company Limited Company 30. Mar 19 30. Mar 19 19,417,400 ₹103.00 ₹1,999,991,845
01. Aug 18 Buy Shreekant Somany Individual 27. Jul 18 27. Jul 18 20,000 ₹125.23 ₹2,504,580
X
Management checks
We assess JK Tyre & Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. JK Tyre & Industries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is JK Tyre & Industries Limited (NSE:JKTYRE) A Great Dividend Stock?

A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … Historically, JK Tyre & Industries Limited (NSE:JKTYRE) has been paying a dividend to shareholders. … Let's take a look at JK Tyre & Industries in more detail.

Simply Wall St -

Taking A Look At JK Tyre & Industries Limited's (NSE:JKTYRE) ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows JK Tyre & Industries has a return on equity of 13% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is There An Opportunity With JK Tyre & Industries Limited's (NSE:JKTYRE) 26.17% Undervaluation?

Does the January share price for JK Tyre & Industries Limited (NSE:JKTYRE) reflect it's really worth? … by taking the expected future cash flows and discounting them to today's value. … If you are reading this and its not January 2019 then I highly recommend you check out the latest calculation for JK Tyre & Industries by following the link below

Simply Wall St -

Is JK Tyre & Industries Limited's (NSE:JKTYRE) CEO Pay Fair?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Raghupati Singhania's Compensation Compare With Similar Sized Companies. … Our data indicates that JK Tyre & Industries Limited is worth ₹21b, and total annual CEO compensation is ₹58m.

Simply Wall St -

Does JK Tyre & Industries Limited (NSE:JKTYRE) Have A Good P/E Ratio?

JK Tyre & Industries has a price to earnings ratio of 8.19, based on the last twelve months. … How Do I Calculate JK Tyre & Industries's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

JK Tyre & Industries Limited (NSE:JKTYRE): What Are Investors Earning On Their Capital?

and want to better understand how you can grow your money by investing in JK Tyre & Industries Limited (NSE:JKTYRE). … JK Tyre & Industries stock represents an ownership share in the company. … Thus, to understand how your money can grow by investing in JK Tyre & Industries, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Should You Buy JK Tyre & Industries Limited (NSE:JKTYRE) For Its Dividend?

A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … Historically, JK Tyre & Industries Limited (NSE:JKTYRE) has paid a dividend to shareholders. … Let's take a look at JK Tyre & Industries in more detail.

Simply Wall St -

How Did JK Tyre & Industries Limited's (NSE:JKTYRE) 11.64% ROE Fare Against The Industry?

This analysis is intended to introduce important early concepts to people who are starting to invest. … and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … View our latest analysis for JK Tyre & Industries

Simply Wall St -

Is JK Tyre & Industries Limited (NSE:JKTYRE) Excessively Paying Its CEO?

Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders. … CEOs leading companies of similar size and profitability

Simply Wall St -

Is JK Tyre & Industries Limited (NSE:JKTYRE) Cheap And High Growth?

is an automobile company operating in an industry. … Upcoming challenges facing the sector is navigating the path from current automobile models to driverless cars, requiring high capital outlays in emerging technology … The limitation of automobile incumbents is an opportunity for tech giants such as Apple and Google to develop their own software components behind networking, autonomous and communication capabilities of automobiles

Simply Wall St -

Company Info

Description

JK Tyre & Industries Limited develops, manufactures, markets, and distributes tyres, tubes, and flaps in India and Mexico. The company offers truck/bus bias and radial, light and small commercial vehicle, farm, passenger car radial, off the road, two- and three-wheeler, motorcycle and scooter, and racing car tyres under the JK Tyre, Vikrant, Tornel, and Challenger brand names. It also operates tyre care centers that are involved in the repair, inflation pressure check, rotation, and servicing of tyres. The company markets its products and services through a network of approximately 300 JK Steel Wheels retail outlets, approximately 60 JK Xpress Wheels retail outlets, and 40 JK Truck Wheels retail outlets, as well as 28 JK Retread Centers and 17 Tyre care centers. It also exports its products to North America, Latin America, Africa, and the Middle East. JK Tyre & Industries Limited was incorporated in 1951 and is headquartered in New Delhi, India.

Details
Name: JK Tyre & Industries Limited
JKTYRE
Exchange: NSEI
Founded: 1951
₹22,788,667,944
246,230,880
Website: http://www.jktyre.com
Address: JK Tyre & Industries Limited
Patriot House 3,
BahadurShah Zafar Marg,
New Delhi,
Delhi, 110002,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 530007 Equity Shares Mumbai Stock Exchange IN INR 02. Jan 1992
NSEI JKTYRE Equity Shares National Stock Exchange of India IN INR 02. Jan 1992
Number of employees
Current staff
Staff numbers
0
JK Tyre & Industries employees.
Industry
Tires and Rubber
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/18 12:53
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/15
Last earnings filing: 2019/02/14
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.