JK Tyres - 20020141022 - 20020141004
JK Tyres - 20020141022 - 20020141004
JK Tyres - 20020141022 - 20020141004
JK Tyre - Consolidated
On consolidated basis, the Company has 12 plants (9 in India and 3 in Mexico) wit
2,110 tonne per day (tpd) or 35.0 mn tyres p.a.
JK Tyre-Standalone JK Tornel
2/3W - 60 tpd
Non-truck bias - 80 tpd
JK Tyre holds 64% stake in CIL
and the balance is held by
other JK Group companies.
JK Tyre valuation as per DCF method
Number Of Enterprice
Company Name Share Price Shares(Cr) Debt Cash Equity value Value Revenue
Apollo Tyres
MRF
Ceat
Goodyear
TVS Srichakra
MM Rubber
GRP
Balkrishna Ind
Maximum
75th percentile
Median
25th percentile
Minimum
JK Tyre
EBITDA Revenue
Growth EBITDA growth EV/EBITDA TTM 1-Y FWD 2-Y FWD TTM 1-Y FWD
FY21E FY22E FY23E FY21E FY22E
17 16 15 0.9 0.8
12 12 11 0.7 0.7
9 9 8 0.6 0.5
7 7 4 0.4 0.4
5 6 3 0.3 0.3
cap/Revenue(P/E)
FY23E
0.8
0.5
0.8
0.8
0.3
0.6
0.6
0.7
0.8
0.8
0.6
0.5
0.3
78,610
2 Regression beta
Cost of equity
Particulars Notes Value
Risk-free rate (%) 7.8%
Beta 1.29
Regression beta
JK Tyre & Industries Limited N/A 1.43402000222728
1 Bottom-up
2 Regression beta
3-Apr-79 124.15 PV
31-May-18 35,322.38 FV
Time (in years) 39.16 T
CAGR 15.5%
Cost of debt Weighted average cost of capital
Particulars Notes Value Particulars
Debt borrowing rate (%) 8.280% Debt (%)
Expected income tax 34.608% Equity (%)
rate (%)
After-tax cost of debt (%) 5.415% WACC
Source: Calculation Source: Calculation
Targeted D/E
10.4%
urce: Calculation
1.50
Beta calculation
Particulars Beta R sq Trading volume %
MRF Ltd. 0.94 20.1% 73.8%
CEAT Limited 1.21 18.5% 494.4%
Apollo Tyres Ltd. 1.22 21.3% 151.2%
JK Tyre & Industries 1.43 21.2% 219.2%
Average yearly volume (in mn) 3.13
Date MRF Ceat
Price % Trading volume Trading volume Price % Trading volume
BSE NSE BSE
Selling General & Admin Exp. 9,399 12,093 8,588 8,939 9,949 8,181
Provision for Bad Debts 201 184 17
R & D Exp.
Depreciation & Amort. 1,328 1,795 1,578 2,161 2,913 2,995
Other Operating Expense/(Income) 1,452 1,675 9,689 9,770 11,973 14,673
Other Operating Exp., Total 12,380 15,746 19,855 20,887 24,835 25,848
Profitability ratios
Sales growth (%) na 9.5% -3.5% -6.6% 11.5% 11.1%
Gross profit margins (%) 24.7% 29.6% 37.4% 43.9% 43.5% 37.1%
EBITDA margins (%) 8.8% 11.4% 12.6% 16.8% 15.0% 10.3%
EBIT margins (%) 6.9% 9.0% 10.5% 13.6% 11.2% 6.8%
Cost as % of sales
Manufacturing cost 75.3% 70.4% 62.6% 56.1% 56.5% 62.9%
Selling General & Admin Exp. 13.5% 15.8% 11.6% 13.0% 12.9% 9.6%
Provision for Bad Debts 0.3% 0.2% 0.0% 0.0% 0.0% 0.0%
R & D Exp. 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Depreciation & Amort. 1.9% 2.3% 2.1% 3.1% 3.8% 3.5%
Other Operating Expense/(Income) 2.1% 2.2% 13.1% 14.2% 15.6% 17.2%
Total of manufacturing cost and other operating expenses 77.4% 72.6% 75.8% 70.3% 72.1% 80.1%
LIABILITIES
Accounts Payable 8,999 10,532 10,545 9,554 12,137 11,654
Accrued Exp. 1,634 1,935 2,052 2,050 2,524 2,800
Short-term Borrowings 12,929 12,752 12,058 11,113 18,057 18,622
Curr. Port. of LT Debt 1,687 1,987 2,654 2,398 2,786 6,000
Curr. Port. of Cap. Leases
Curr. Income Taxes Payable 1,500 1,234 1,831 85 57 9
Unearned Revenue, Current
Other Current Liabilities 1,334 1,837 3,548 3,357 3,104 5,435
Total Current Liabilities 28,083 30,277 32,687 28,556 38,666 44,520
Total Liabilities And Equity 55,626 60,426 69,038 70,781 106,646 105,675
Fixed asset turnover ratio 1.54 1.58 1.31 1.12 0.90 0.93
Depreciation rate 2.9% 3.7% 2.8% 3.5% 3.4% 3.4%
Debt/(Debt+Equity) 64.8%
Equity/(Debt+Equity)
D/E ratio 1.45 2.09 1.84
31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26
Selling General & Admin Exp. 24,053 26,857 20,694 21,107 23,878 21,566
Provision for Bad Debts 29 158
R & D Exp. 935 1,381
Depreciation & Amort. 3,502 4,071 3,881 4,266 4,616 5,926
Other Operating Expense/(Income) 1,094 35 15,028 15,349 17,335 24,706
Other Operating Exp., Total 29,614 32,502 39,603 40,721 45,828 52,198
Profitability ratios
Sales growth (%) na 4.1% -4.4% -7.7% 11.3% 12.3%
Gross profit margins (%) 31.7% 35.8% 43.3% 48.1% 45.9% 42.8%
EBITDA margins (%) 11.3% 14.5% 15.2% 17.0% 14.3% 11.3%
EBIT margins (%) 8.6% 11.4% 12.1% 13.4% 10.8% 7.2%
Gross Property, Plant & Equipment 85,851 92,120 87,000 109,556 144,301 179,091
Accumulated Depreciation (42,002) (48,084) (44,411) (54,302) (55,196) (61,122)
Net Property, Plant & Equipment 43,849 44,036 42,589 55,254 89,105 117,969
Long-term Investments 54 68 7 42 17 35
Goodwill 1,436 1,376 1,165 1,982 1,774 2,061
Other Intangibles 467 301 207 3,421 3,372 7,042
Loans Receivable Long-Term 15 10 15 22 24 20
Deferred Tax Assets, LT 10 117 297 602 629 956
Deferred Charges, LT 575 686 889 1,416 1,815 -
Other Long-Term Assets 2,286 2,145 3,404 7,779 6,173 4,461
Total Assets 85,554 90,456 86,295 116,538 153,005 201,532
LIABILITIES
Accounts Payable 10,073 12,538 5,756 11,418 13,127 24,471
Accrued Exp. 4,865 2,072 4,682 4,676 5,242
Short-term Borrowings 6,285 2,751 4,666 7,399 10,886 7,454
Curr. Port. of LT Debt 3,691 6,193 3,000 1,469 1,874
Curr. Port. of Cap. Leases - 53 56 106 46
Curr. Income Taxes Payable 1,206 700 809 1,469 1,074 1,070
Unearned Revenue, Current - 36 55 56 54
Other Current Liabilities 2,590 6,436 6,969 7,880 12,515 16,625
Total Current Liabilities 28,710 30,778 25,993 34,473 44,819 49,620
Minority Interest
Total Liabilities And Equity 85,554 90,456 86,295 116,538 153,005 201,532
Interest expenses
Total debt 26,507 15,914 10,890 15,182 34,196 44,457
Borrowing rate (in %)
Debt/(Debt+Equity)
Equity/(Debt+Equity)
D/E 0.179 0.346 0.289
0.271
Income Statement
For the Fiscal Period Ending Reclassified Reclassified Reclassified Restated 12 months 12 months
12 months 12 months 12 months 12 months Mar-31-2020 Mar-31-2021
Mar-31-2016 Mar-31-2017 Mar-31-2018 Mar-31-2019
Currency INR INR INR INR INR INR
Selling General & Admin Exp. 3,640 7,611 4,925 5,096 5,354 4,383
Provision for Bad Debts 1 42 1 6 -
R & D Exp. -
Depreciation & Amort. 802 861 930 1,077 1,431 1,686
Other Operating Expense/(Income) 7,328 680 9,790 10,367 11,150 13,677
Other Operating Exp., Total 11,770 9,195 15,644 16,541 17,941 19,746
Profitability ratios
Sales growth (%) na 9.9% 3.6% -4.7% 5.2% 11.0%
Gross profit margins (%) 30.4% 27.2% 37.5% 42.6% 40.1% 37.8%
EBITDA margins (%) 8.7% 12.2% 11.9% 14.4% 11.5% 9.6%
EBIT margins (%) 7.1% 10.6% 10.3% 12.4% 9.0% 7.0%
Gross Property, Plant & Equipment 21,734 23,021 25,605 23,720 29,347 33,537
Accumulated Depreciation (6,560) (7,397) (8,303) (1,005) (2,322) (4,008)
Net Property, Plant & Equipment 15,174 15,625 17,302 22,715 27,026 29,530
LIABILITIES
Accounts Payable 7,925 6,888 6,583 6,353 7,582 8,705
Accrued Exp. 958 781 1,007 749 1,184
Short-term Borrowings 4,048 5,969 2,715 335 580 1,956
Curr. Port. of LT Debt 2,088 1,536 1,491 417 136 2,249
Curr. Port. of Cap. Leases
Curr. Income Taxes Payable 138 151 163 368 226 310
Unearned Revenue, Current 8 8 10
Other Current Liabilities 3,275 3,784 3,983 4,083 4,363 5,169
Total Current Liabilities 18,431 19,110 15,943 12,314 14,079 18,400
Total Liabilities And Equity 31,470 35,401 38,224 41,080 49,854 51,610
Interest expenses
Total debt 10,377 11,738 7,750 6,632 9,240 8,717
Borrowing rate (in %)
Debt/(Debt+Equity)
Equity/(Debt+Equity)
D/E 0.25 0.18 0.16
0.20
Income Statement
For the Fiscal Period Ending Reclassified Reclassified Reclassified Restated 12 months 12 months
12 months 12 months 12 months 12 months Mar-31-2020 Mar-31-2021
Mar-31-2016 Mar-31-2017 Mar-31-2018 Mar-31-2019
Currency INR INR INR INR INR INR
Selling General & Admin Exp. 11,847 13,701 9,335 11,517 13,235 10,924
Provision for Bad Debts 5 2 1 1
R & D Exp.
Depreciation & Amort. 3,018 3,737 4,238 4,914 6,104 7,067
Other Operating Expense/(Income) 501 414 18,436 16,153 17,205 24,712
Other Operating Exp., Total 15,366 17,858 32,011 32,585 36,545 42,703
Restructuring Charges
Merger & Related Restruct. Charges
Impairment of Goodwill
Gain (Loss) On Sale Of Invest. 0 5 135 1,653 2,767
Gain (Loss) On Sale Of Assets 4 (1) (25) (44) (35)
Asset Writedown (160)
Insurance Settlements 171
Other Unusual Items
EBT Incl. Unusual Items 8,433 12,354 13,531 24,373 21,094 16,527
Income Tax Expense 2,638 4,268 4,448 7,643 6,232 5,210
Earnings from Cont. Ops./Net Income to Company 5,794 8,086 9,083 16,730 14,862 11,316
Profitability ratios
Sales growth (%) na 2.2% 8.8% 0.9% -0.4% 11.9%
Gross profit margins (%) 21.3% 26.5% 35.7% 43.1% 42.9% 39.3%
EBITDA margins (%) 11.0% 14.9% 14.9% 22.6% 20.2% 15.5%
EBIT margins (%) 8.5% 11.9% 11.7% 18.9% 15.7% 10.8%
Gross Property, Plant & Equipment 54,671 58,228 69,434 63,116 75,583 90,817
Accumulated Depreciation (21,397) (24,951) (28,871) (6,531) (12,214) (19,281)
Net Property, Plant & Equipment 33,274 33,278 40,563 56,585 63,369 71,536
LIABILITIES
Accounts Payable 9,452 10,288 11,503 11,262 14,084 15,685
Accrued Exp. 3,690 3,859 4,482 5,884 5,443 -
Short-term Borrowings 5,287 4,762 6,163 8,856 8,341 6,885
Curr. Port. of LT Debt 765 1,703 878 919 2,604 -
Curr. Port. of Cap. Leases
Curr. Income Taxes Payable 476 1,100 1,316 100 655 129
Unearned Revenue, Current 309 354 -
Other Current Liabilities 1,140 1,589 1,892 12,959 13,540 23,199
Total Current Liabilities 20,809 23,301 26,233 40,288 45,020 45,899
Common Stock 42 42 42 42 42 42
Additional Paid In Capital 94 94 94 94 94 94
Retained Earnings 28,020 35,672 44,436 71,522 85,726 97,245
Treasury Stock
Comprehensive Inc. and Other 454 746 823 585 545
Total Common Equity 28,611 36,554 45,396 72,243 86,408 97,382
Minority Interest 1 1 1 1 1 1
Total Liabilities And Equity 72,278 82,790 98,340 132,538 150,830 164,785
Interest expenses
Total debt 17,078 15,990 19,028 24,639 23,328 20,079
Borrowing rate (in %)
Debt/(Debt+Equity)
Equity/(Debt+Equity)
D/E 0.17594046002365 0.10509840298611 0.06249080538901
0.1145099