jk tyre & industry - technical analysis

8/9/2019 JK Tyre & Industry - Technical Analysis

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Mishaal Hamza

JK Tyres & Industries Ltd Technical

Analysis


2/13

Current Scenario

y JK Tyre and Industries Ltd. is a mega corporate entity

that is emblematic of excellence, diversification and

pioneering new technologies. It is a part of JK

Organization which ranks among the leading privatesector groups in India.

Current Market Price -

Rs163.45

Volume : 17955

Market Cap (Rs Cr) : 671.78

52wk H/L (Rs)235.70 - 87.40


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Head & Shoulder (July-Aug)


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Current Market Condition

y EPS Rs 39.81 Per Share

y

Market Cap -654

.9y Industry P/E 3.59

y P/E - 4.04

y Book Value - 168.88

y Face Value - 10


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Financials

Rs in Crore March

2010

March

2009

March

2007

SalesTurnover 4,849.17 6,109.41 3,195.71

Net Profit 223.81 -103.92 69.37

Total Shareholder's Funds 849.96 691.64 544.05

Total Debt 1,158.90 1,382.42 914.97

Earning Per Share (Rs.) 28.93 0.00 22.07


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Financial Performance

1 Wk Price performance

(%): -3.62

1 M Price performance

(%): -3.62

Q on Q Sales Growth (%) : 30.62 Q on Q Net Profit Growth(%)

: -26.63

3 Yr CAGR Sales (%) : 20.85 3 Yr CAGR Profit (%) : 165.15

Debt to Equity Ratio (x) : 2.89 Net Profit Margin (%) : 4.90

Promoter Shareholding (%) : 46.97 FII Shareholding (%) : 9.42

Return on Equity (%) : 49.92 EV to EBITDA (x) : 3.11


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Indicators Used

RSI

Stochastic Method

Simple MovingAverage Method/Dow

TheoryRSI

Stochastic MethodSimple MovingAverage Method/Dow

Theory

E

llio

t Wav

e Theo

ry


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Relative Strength Index

Closing Price Up or Down

Apr'05 - Mar'06 97.6

Apr'06 - Mar'07 114.11

Apr'07 - Mar'08 105.05 Apr'08 - Mar'09 119.5

Apr'09 - Mar'10 196.45

Apr'10 - Aug'10 164.45

Relative StrengthIndex

(Avg of X Days Up Closes)/(Avgof X Days Down closes)

RSI = 100 - 100 /(1+1.063822)

= 51.54

Conclusion: IfRSI is 30-70, it is the best time to sell or buy


9/13

RSI (Feb 09 Aug 10)

The RSI is now at 51.54 which is relatively the best time to buy

or sell the share.

When RSI > 70, Best time to sell

When RSI < 30, Best time to Buy


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Stochastic Method (14 Day)

y The sale signal is given when both lines are over 80% and the

purchase signal when both lines are under 20%.

y The lag used for n in %K is often 5 days but (9,11 and 14

days are used as well)


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Simple Moving Average Method/Dow Theory

Average value of a

security's price over a

period of time.A buy signal

is generated when the

security's price rises above

its moving average and a sell signal is generated when the security's price

falls

below its

moving average


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Simple Moving Average for Other Players


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Elliot Wave Theory

jk tyre & industry - technical analysis

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