Revenue of the company was up 26 percent at Rs 2,439.52 crore against Rs 1,931.80 crore.
Shares of JK Tyre and Industries rose 4 percent intraday Thursday as company reported net profit in the quarter ended June 2018.
The company's Q1FY19 (April-June) net profit stood at Rs 64.13 crore against loss of Rs 107.73 crore in the same quarter last fiscal.
Revenue of the company was up 26 percent at Rs 2,439.52 crore against Rs 1,931.80 crore.
Raghupati Singhania, Chairman and Managing Director of JK Tyre said, "Increased volumes and internal efficiencies helped improve profitability. The company maintained its leadership in the fast growing Truck/Bus Radial segment, which witnessed further radialization in Q1."
According to Dolat Capital, the company is behind in passenger car and 2-wheeler segments, which are the most profitable segments. Q1FY19 has been strong but we feel that it will be early to infer any long-term trends from this performance.
With high debt levels, profitability is likely to be under pressure. With recent correction in the stock price and strong Q1FY19 numbers, we recommend accumulate with a target price of Rs 145.
At 09:40 hrs JK Tyre and Industries was quoting at Rs 127.35, up Rs 2.70, or 2.17 percent.
The share touched its 52-week high Rs 192.95 and 52-week low Rs 116 on 12 February, 2018 and 03 July, 2018, respectively.
Currently, it is trading 34 percent below its 52-week high and 9.78 percent above its 52-week low.
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