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India's JK Tyre and Industries on Tuesday reported a more than three-fold rise in third-quarter profit, boosted by lower raw material costs.

Consolidated net profit rose to 2.21 billion rupees ($26.6 million) for the quarter ended Dec. 31 from 655.9 million rupees a year earlier.

This is the fifth straight rise in quarterly profit for the company, which counts Tata Motors and Maruti Suzuki India as its customers.

Revenue from operations rose 2.1% to 36.88 billion rupees.

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KEY CONTEXT

At an industry level, demand for tyres has been weak despite start of the busy season, analysts said. Apollo Tyres and JK Tyre remain participants in the market, not able to dictate prices. MRF continues to be market leader, they added.

MRF has yet to report results and rival CEAT reported a rise in profit similar to JK Tyre, thanks to price hikes.

JK Tyre's revenue from operations rose for the fourteenth straight quarter.

PEER COMPARISON

Valuation (next Estimates (next 12 months) Analysts' sentiment

12 months)

RIC PE EV/EBIT Revenue growth % Profit growth % Mean rating* # of analysts Stock to price target** Div yield (%)

DA

JK Tyre & 14.90 7.97 7.48 35.61 Hold 4 1.07 0.38

Industries Ltd

Apollo Tyres Ltd 17.39 8.50 7.59 17.21 Buy 22 1.22 0.74

MRF Ltd 28.12 13.93 7.65 9.97 Sell 7 1.38 0.12

CEAT Ltd 14.93 7.24 8.30 17.50 Buy 14 0.96 0.46

* The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

OCTOBER-DECEMBER STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 83.0290 Indian rupees