Which is better for long term holding: JK Tyre or Apollo Tyres?
JK Tyre and Apollo Tyres are two of the leading tyre manufacturers in India. Both companies have a strong presence in the domestic market and are also exporting their products to various countries across the globe. However, there are some key differences between the two companies that investors should consider before making a long-term investment decision.
Market share: JK Tyre has a market share of around 24% in the Indian tyre market, while Apollo Tyres has a market share of around 21%. This gives JK Tyre a slight edge over Apollo Tyres in terms of market share.
Product portfolio: JK Tyre has a wider product portfolio than Apollo Tyres. JK Tyre manufactures a wide range of tyres for passenger cars, trucks, buses, and off-road vehicles. Apollo Tyres, on the other hand, focuses primarily on passenger car tyres.
Financial performance: JK Tyre has been consistently outperforming Apollo Tyres in terms of financial performance. JK Tyre has reported higher revenue and profit margins than Apollo Tyres in recent years.
Valuation: JK Tyre is currently trading at a higher valuation than Apollo Tyres. JK Tyre's price-to-earnings (P/E) ratio is around 20, while Apollo Tyres' P/E ratio is around 16. This suggests that investors are willing to pay a premium for JK Tyre's shares.
Based on the above factors, JK Tyre appears to be a better choice for long-term holding than Apollo Tyres. JK Tyre has a higher market share, a wider product portfolio, better financial performance, and a higher valuation.
FAQs:
- Which company has a higher market share in India? - JK Tyre has a market share of 24%, while Apollo Tyres has a market share of 21%.
- Which company has a wider product portfolio? - JK Tyre has a wider product portfolio than Apollo Tyres.
- Which company has better financial performance? - JK Tyre has been consistently outperforming Apollo Tyres in terms of financial performance.
- Which company is trading at a higher valuation? - JK Tyre is currently trading at a higher valuation than Apollo Tyres.
- Which company is a better choice for long-term holding? - Based on the above factors, JK Tyre appears to be a better choice for long-term holding than Apollo Tyres.
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