Two-thirds of JK Tyre’s revenue too comes from the TBR segment. But then the stock fell steadily soon after as news of rising rubber prices dampened investor sentiment. The new unit from Kesoram was not profitable at a the time when rubber prices were at their lowest. In any case, JK Tyre’s share price has been highly erratic in the last couple of quarters and has underperformed the S&P BSE 500 index. The stock surged by nearly 35% over a few weeks, as the company announced its strategic deal to buy a 64% stake in Kesoram’s tyre unit in September.

Source: Mint May 16, 2016 14:11 UTC