JK Tyre & Industries Ltd is one of India’s leading tyre manufacturers and part of the century-old JK Organisation. The company produces a wide range of tyres for passenger cars, commercial vehicles, tractors, and off-highway applications, with a strong presence in both domestic and international markets. Known for pioneering radial technology in India, JK Tyre has built a reputation for innovation and quality. However, recent quarters have shown significant profit contraction and declining sales, raising concerns about near-term performance. This article provides a balanced, fact-based outlook and realistic share price targets for each year from 2026 to 2030.
Incorporated: 1972 (as part of the JK Group, founded in 1918)
Business: Manufacturing of radial and bias tyres for:
Truck & Bus Radial (TBR)
Passenger cars
Light Commercial Vehicles (LCV)
Tractors and farm equipment
Global Presence: Exports to over 100 countries; ranked among the top 25 global tyre makers
Ownership: Promoter holding at 51.72% – controlled by the Singhania family (Dr R.P. Singhania is Chairman & MD)
Listed: Yes – on BSE (500145) and NSE (JKTYRE)
Clarifications:
Is JK Tyre listed? Yes – since 1983.
Who owns JK Tyre? The Singhania promoter family holds 51.72%.
Is it a good buy? Only for long-term, high-conviction investors who believe in India’s auto replacement cycle recovery. Current fundamentals are weak.
Undervalued or overvalued? Trading at P/E 31.5x with negative profit growth – appears overvalued near-term.
MRF vs JK Tyre?MRF is larger, premium-priced, and debt-free with higher ROE (~18%). JK Tyre is more affordable but carries debt and lower returns. MRF is better for quality; JK for cyclical upside.
JK Tyre: Key Financial Snapshot
Metric
Value
Market Capitalization
₹15,120.78 Cr
Current Share Price
₹525
52-Week High / Low
₹710 / ₹320
P/E (TTM)
31.46
P/B (TTM)
3.40
Book Value (TTM)
₹154.22
EPS (TTM)
₹16.67
ROE
9.53%
ROCE
12.17%
Dividend Yield
0.57%
Debt
₹2,644.82 Cr
Cash Reserves
₹547.39 Cr
Sales Growth (YoY)
–1.33%
Profit Growth (YoY)
–34.79%
Shareholding Pattern
Category
Holding (%)
Promoters
51.72%
Public (Retail)
23.85%
Foreign Institutions (FII)
16.92%
Domestic Institutions (DII)
7.51%
Others
0%
Note: Strong promoter control ensures strategic continuity.
JK Tyre Share Price Target Forecast (2026–2030)
Given the sharp profit decline, high P/E, and modest ROCE, upside is limited unless earnings rebound. Targets assume:
EPS recovery by FY27 as raw material costs stabilise
P/E compression from 31.5x to 20–22x by 2028
Debt reduction through operating cash flows
Year
Target Price Range (₹)
2026
₹540 – ₹600
2027
₹570 – ₹650
2028
₹600 – ₹710
2029
₹630 – ₹770
2030
₹660 – ₹830
Year-wise Breakdown
JK Tyre Share Price Target 2026
Year
Target 1
Target 2
2026
₹540
₹600
Rationale: Near-term upside is capped by 34.8% profit decline and weak auto demand. However, debt-to-equity remains manageable (~0.56x), and replacement tyre demand may revive.
JK Tyre Share Price Target 2027
Year
Target 1
Target 2
2027
₹570
₹650
Rationale: Expected benefit from festival season demand, export order ramp-up, and cost optimization in manufacturing.
JK Tyre Share Price Target 2028
Year
Target 1
Target 2
2028
₹600
₹710
Rationale: By 2028, new product launches (e.g., EV tyres) and capacity utilisation improvement could drive margin expansion.
JK Tyre Share Price Target 2029
Year
Target 1
Target 2
2029
₹630
₹770
Rationale: Long-term play on India’s vehicle parc growth and tyre replacement cycle. Success depends on brand premiumization and OEM partnerships.
JK Tyre Share Price Target 2030
Year
Target 1
Target 2
2030
₹660
₹830
Rationale: The upper end assumes sales growth returns to 8–10%, ROE improves above 12%, and debt/EBITDA falls below 2x. Even at ₹830, P/E would be ~22x—reasonable for recovery.
Strengths vs Risks
✅ Strengths
Strong brand heritage and R&D in radial tech
Global export franchise (100+ countries)
Diversified product portfolio across vehicle segments
Backward integration in synthetic rubber
⚠️ Risks
Negative profit growth (-34.8%) due to input cost pressure
Intense competition from MRF, CEAT, Apollo, and imports
Investment Suitability
Factor
Assessment
Risk Profile
Moderate-to-High (cyclical auto)
Time Horizon
Long-term (5+ years)
Volatility
High
Dividend/Income
Low (0.57% yield)
Ideal Investor
Cyclical investor betting on auto recovery; not for conservative portfolios
FAQs
Yes – on NSE (JKTYRE) and BSE (500145).
Only if you accept short-term pain for long-term gain. Avoid if seeking stable earnings.
The Singhania family (promoters) hold 51.72%.
Currently overvalued—P/E of 31.5x with falling profits.
MRF is superior in quality, pricing power, and balance sheet strength. JK Tyre is more affordable but riskier. Choose MRF for safety, JK for cyclical upside.
Final Verdict
JK Tyre is a quality brand in a tough cycle. While its innovation and global reach are strengths, current profit erosion and high valuation make it a risky buy. Our 2026–2030 price targets (₹540–₹830) reflect cautious optimism—assuming recovery in auto demand and cost management. Investors should wait for clearer earnings stabilisation before building large positions.
📌 Disclaimer: Price targets are estimates based on current fundamentals and sector trends. They are not investment advice. Please consult a SEBI-registered advisor before investing.
