Online
|
|
yup... it would go to 200 and then 250 easily... ...
MYSORE: JK Tyre & Industries is looking to increase direct supply of truck and bus radial tyres to commercial vehicle makers like Tata Motors
and Ashok Leyland by three times in next two years.
The company, which recently increased production capacity of truck and bus radials to eight lakh units annually, sells only five per cent of it to original equipment manufacturers (OEMs), with the rest going to the after sales market.
"In truck and bus radials, our sales to OEMs is only around five per cent of out annual total production. We are now looking to increase the share by three times to 15 per cent within the next two years," JK Tyre & Industries Vice Chairman and MD R P Singhania said.
He said the rate of radialisation (changing from the traditional tyres that uses nylon threads to the one that uses steel wire) among truck and bus manufacturers is increasing rapidly and JK Tyre is aiming to tap this market.
"Companies like Tata Motors and Ashok Leyland have increased the use of radials and we are hopeful of tapping the market offered by OEMs," Singhania said.
He said currently in India, the overall radialisation in trucks and buses is only 10 per cent but the figure is going to increase to 25 per cent within the next five years. In the last fiscal, total commercial vehicle sales in the country were 3.84 lakh units, according to the Society of Indian Automobile Manufacturers.
JK Tyre had last week announced plans to further increase its capacity of truck and bus radials to 12 lakh units annually within next two years, from the existing eight lakh units.
The additional capacity, part of the company`s Rs 1,200- crore investment plan over next 3-4 years, would be made either at JK Tyre`s truck and radial plant at Mysore or in its upcoming greenfield project in one of the Southern states.
Singhania said radials are increasingly preferred by CV owners as they have longer lifespan, besides offering better mileage, quoting studies by the Pune-based Central Institute of Road Transport (CIRT).
"Radials are more expensive than bias tyres but they deliver more than double the mileage of bias tyres. Radial tyres also offer 12 per cent more fuel efficiency than the bias tyres and so ultimately, radials are more economic," he said. ...
BSE Announcements on JK Tyre & Ind
Posted by :
hugujaratiGood results... and with news of putting 1200cr in expansion... it added icing on the cake... keep buying... this one should go atleast 250... ...
BSE Announcements on JK Tyre & Ind
Posted by :
MMB MessengerJK Tyre & Industries Ltd has informed BSE about the Financial Results for the Quarter ended September 30, 2009....
BSE Announcements on JK Tyre & Ind
Posted by : MMB MessengerJK Tyre & Industries Ltd has informed BSE regarding a Press Release dated October 30, 2009, titled "JK Tyre & Industries profit zooms in Quarter 2"...
JK Tyre & Industries said it will invest Rs 12 billion over the next 3-4 years in expanding its capacity, including setting up a greenfield car radial plant in South India, reports Business Standard.
The company currently produces 158 lakh units of tyres globally of its three brands, JK Tyre, Vikrant and Tornel.
The four Indian plants contribute 92 lakh units, while the rest come from the three Mexican plants.
By March 2010, the total capacity in India would be expanded up to 98 lakh including addition of 5 lakh units of car radials at the plant near Gwalior in Madhya Pradesh
For information,with regards
rvk41...
Yup... agreed... both will do well... with oil prices lowering... they will make better profit... go MRF.. go JK tyres......
Both hv gone up sharply from their lows during last six months. Very difficult to say % return from MRF in comp. with JK Tyre. Both will do well....
what % return from MRF in comp. with JK Tyre?...
typo -
market continues to remain....
Please check my figures in BSE WEBSITE as I always put figures here from there. I do not look for these figures on moneycontrol site. Agreed that if market continues to remaine bullish and touch 21000 next year, MRF can touch 8000 again(at which price I had asked boarders to book profits in 2007) I do not think JKT can reach 400 even at that level. However, much depends upon its working results as well. Having said this, yes, share is looking quite good at current level. If working results are superb, it can have a decent gain from now on....
But the competition tab on the moneycontrol site is not showing the number you have given.. yes its revenue is less... but with OTR and expansion it will go up... yes 600 is too far fetched.. but if MRF goes to 8k then JK tyre deserves to be quoting at 400 at the least......
MRF quarterly turnover was 1447 crores and annual 5046 crores whereas JK tyres quarterly turnover was 900 crores and 18 months turnover 4922 crores.
In terms of profitability, MRF quarterly NP was 125 crores whereas JKT Rs.40 crores.
Thus JKT cannot be compared to MRF by any means. Having said this, of course, if 2nd half is better than 1st half, then of course share will have a sharp upmove from these levels, but 600/- is too far. ...
Its revenue is close to what MRF has. But due to expansion it incurs more expenses. Once expansion is little bit laid back, its profit will shoot up and so would the stock, considering the floating shares of JK is 10 times that of MRF, its price would quote 10 times lesser... so it can potentially reach 600 Rs if it posts a profit of 100cr like MRF has done... so keep buying......
JK Tyres results for 1st qtr were excellent. Let us wait for its 2nd qtr working results. However, boarder`s query to me was for MRF and my reply was for MRF.
...
