Rajen Shah, CIO at Angel Broking told CNBC-TV18, "We have been very bullish on tyre space. MRF was one of our top picks but JK Tyre and Industries looks very interesting at this point of time. Currently MRF is trading at about 9 times the earnings, Apollo Tyres is trading about 6.5 times, CEAT is trading at about 5 times and JK Tyre and Industries next year should report bare minimum earning per share (EPS) of Rs 60 and its trading at Rs 150 so its trading at 2.5 times, so its very cheap."
He further added, "Over the next 12 months 100 percent upside is very much possible especially in lieu of the fact that the promoters have taken 43 lakh warrants and are keen to raise their stake from 47 to 52 percent in the company, so this makes us very bullish on JK Tyres."
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