Though suffering from high debt but JK tyre is better positioned in term of anticipated price rise in good market conditions. Good price to earning and profit generating efficiency level of around 18 with cash retaining ratio of 91%, company is consistently paying the dividend and as per the last available figures, has the reserves of around 1000 crore against the equity capital of 45 crore. It indicates of the good financial health enjoyed by company.
As a forwarding looking policies though, management of JK Tyre must cut down on the debt as also keep retail and other investors posted about the purpose/intention of money borrowed reflecting as debt.
Would be well worth an exercise to work at individual level too to play safe with JK Tyre.