JK Tyre Share Price Jumps After DAM Capital Upgrade
JK Tyre share price closed 6.4 percent higher on Wednesday as the company was rated positively by DAM Capital. JK Tyre has showcased strong performance from yearly lows and the stock is currently hovering around its 52-week highs. DAM Capital has started coverage on JK Tyre with BUY Rating.
The research report has suggested target price of Rs 315 for JK Tyre. DAM Capital has indicated JK Tyre’s strengthening position in the local market as the main reason for upgrade for the stock. The company has been putting additional effort in the premium segment and this could improve margins.
The company reported strong growth in quarterly profit for the quarter ending June 2023. The profit after tax was reported at Rs 154 crore compared to Rs 37 crore for June 2022. The rising demand for passenger vehicles has led to strong performance for majority of tyre companies in India. JK Tyre is still looking fairly valued and the company has a strong coverage across India.
As per DAM Capital, “The primary drivers are the rising demand for vehicles in the country and continuous government investments in infrastructure.”
Geojit BNP Paribas has suggested BUY Call for JK Tyre in August 2023 with price target of Rs 286.
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