Query Trends : JK Tyres and JK Lakshmi Cement

Query : Can I enter JK Tyres & Ind? and JK Lakshmi Cement at the current level? what is the position of the rights issue in JK Tyres & Ind, how would you compare between jk cement & JK Lakshmi Cement? Phillip Samuel

Thebullishtrends : Jk tyres closed on Friday at Rs.127 in BSE. JK Tyre is a 3rd largest tyre manufacturer in India Financial Institutions like Rel Cap,HDFC MF,UTI MF,LIC all holds together 11% in this company. The company performance is good, but due to auto sector sales come down which reflected the sales of JK Tyres for Sept'07 de-grown by 3%. But the margins were improved it has posted net profit of Rs.24.39 crore it is 249% growth in net profit compared to last year the same period.

JK Lakshmi Cement shares closed at Rs.196 on Friday in BSE. JK Cement is a good midcap stock, it recently commissioned 36 MW power plant which contribute significant reduction in power cost of the company. Now it is enhancing its cement production capacity from 3.5mn MT to 5mn MT will be commissioned in the first half of 2008-09 financial year. Now the interest costs also come down to the company due to it replaced the high cost debts to low cost debts, it will reflect in current financial year results. You can enter in JK Lakshmi Cement at better price.