JK Tyre share price jumps 5%, gains 15% in 2 sessions; is it time to bet on the stock? Here’s what experts say

JK Tyre share price: Shares of JK Tyre & Industries continued witnessing strong buying interest for the second consecutive session, rising over 5 per cent in intraday trade on the NSE on Monday, July 1. After witnessing a surge of over 9 per cent in the previous session, JK Tyre's share price opened over a per cent higher at ₹435 against its previous close of ₹429.75 and rose 5.4 per cent to an intraday high of ₹453. The stock traded 4.35 per cent higher at ₹448.45 around 12:55 pm, while the equity benchmark Nifty 50 was 0.47 per cent up at 24,123.

Considering today's high, JK Tyre share price has risen 15 per cent in the last two sessions. For the year so far, the stock has moved broadly in sync with the benchmark, gaining 14 per cent against an 11 per cent gain in the Nifty 50.

JK Tyre shares hit their 52-week high of ₹553.95 on February 5 this year. At the current market price of ₹453, they are down over 18 per cent from their one-year peak.

Ready to take a leap?

Experts are positive about JK Tyre as they see multiple fundamental tailwinds at play, making the stock poised for high growth.

Emkay Global Financial Services has a buy call on the stock with a target price of ₹700, valuing the stock at 15 times FY26E price-to-earnings ratio and an unchanged FY24-26E EPS (earnings per share) CAGR of 21 per cent.

The target price implies a nearly 63 per cent upside potential in the stock from its previous closing price of ₹429.75.

Emkay pointed out that the trucking industry fundamentals and sentiments are healthy. The brokerage firm expects the CV (commercial vehicle) industry to enter an upcycle from FY26E, which is positive for companies such as JK Tyre.

Emkay observed that Indian tyre companies continue to close the gap with MNCs and with the domestic leader across parameters like quality, performance, and positioning.

Moreover, improving demand and premiumisation have enabled players, including JK Tyre, to offset rising raw material (RM) and extended producer responsibility (EPR)-related costs via price hikes, with further hikes expected during the year if RM costs see more spike, Emkay said.

Emkay believes JK Tyre continues to offer strong risk-reward at eight times FY26E price-to-earnings ratio versus the 16 times peer average.

Technical indicators are also favouring the stock at the current juncture.

Mandar Bhojane, an equity research analyst at Choice Broking, pointed out that the stock recently broke out of a daily trendline with a significant increase in trading volume, indicating a strong bullish trend.

Bhojane believes if the price halves above the ₹450 level, it may reach short-term targets of ₹526 and ₹550. Immediate support levels are located at ₹424 and ₹415, which can be considered opportunities to buy on dips.

The Relative Strength Index (RSI) currently stands at 67 and is trending upward, indicating increasing buying momentum.

"To prudently manage risk, it is advisable to set a stop loss at ₹394. This precaution will help protect your investment in case of an unexpected market reversal. Considering the technical analysis and the current market conditions, JK Tyre appears to present an appealing buying opportunity for those aiming for a ₹526 and ₹550 price target, provided that appropriate risk management measures are in place," said Bhojane.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.