India’s Top Tyre manufacturer JK Tyre & Industries Ltd shares rose 9 percent and reached an all-time high of Rs 228.30 on Friday’s first half session. The shares rose after the company announced the completion of the first phase of capacity expansion at its Madhya Pradesh manufacturing facility.
As per exchange filings, the Company announced the completion of the first phase of capacity development of its radial tire production plant. With an expenditure of Rs. 312 crores, The plant’s annual output capacity would rise by 31% as a consequence of the expansion, from 39 lakh to 51 lakh units.
JK Tyre is currently in the second phase of growth, with an additional Rs 617 crore investment that would expand capacity by 31% by April 2024. Additionally, the company has planned a two-phased expansion at its current Banmore factory to cater to passenger car radial (PCR) with a cost of around Rs 1000 crore.
At 1:00 pm, the shares of JK Tyre & Industries Ltd quoted Rs 224.75, up 8.39 percent on NSE.
JK Tyre & Industries is a one of the leading tire manufacturers in India and a company engaged in the business of manufacturing automotive tires, flaps, and tubes.
In the past year, the company’s share price increased from Rs 108.65 to current levels, giving multibagger returns of 121 percent. Therefore, if an investor purchased 1 lakh company shares in the previous year, their holdings would now be worth 2.21 lakhs!
According to the company’s financials, Operating revenue increased by 9.6 percent to Rs 3,632 crore in Q4FY23 compared to the same quarter the previous year. Similarly, Net profit rose by 195 percent to Rs 112 crores.
Revenue grew by 22 percent year on year, from Rs 11,982 crore in FY 21-22 to Rs 14,644 crore in FY 22-23, Within the stated term, the net profit increased by 32 percent from Rs 200 crore to Rs 264 crore.
Written by Omkar Chitnis
