Shares of JK Tyre Industries fell more than 4 percent on Friday despite the company being optimistic about demand growth in the current fiscal.
At 14:50 IST, shares of the tyre manufacturer were trading 3 percent lower at Rs 133.65 on the BSE.
As per reports, JK Tyre said on Thursday that it has hiked price by 6-7 percent and a further hike is under consideration to tackle the raw material cost pressure.
Also Read |
On an average, the cost input impact on the company due to the unprecedented commodity price inflation was around 30-35 percent over the last 18 months, reportedly said JK Tyre president (India) Anuj Kathuria.
The tyre company has taken consistent price hikes in the last fiscal and even in this fiscal further price increase to the tune of 6-7 percent has been done, he added.
Meanwhile, other tyre stocks like CEAT, MRF, Apollo Tyres, TVS Srichakra and Balkrishna Industries were trading 0.1-3.2 percent lower. Apollo Tyres hit a fresh 52-week high at Rs 268.25 earlier today but slipped into the red sooner.
Meanwhile, rubber prices hit a 19-month low. Foreign brokerage house Nomura said 10 percent drop in natural rubber and crude oil derivatives can help improve margin of Apollo Tyres by 170 basis points. This had initially helped the upmove in the stock earlier today.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
BJP's Hindi heartland dominance faces test in phase 3 polls
May 2, 2024 9:14 PM
Lok Sabha Election: Re-elections at a Ajmer booth after presiding officer misplaces register of voters
May 2, 2024 4:54 PM