JK Tyre is expected to kick start its next growth cycle from FY16E onwards as its capex on incremental capacities will start generating returns. We expect higher revenues along with the increase in margins to deliver healthy return ratios and strong balance sheet. We initiate coverage on JK Tyre & Industries Ltd with a BUY rating valuing at 4.2x FY17E EV/EBITDA/5.8x FY17E P/E for a target price of Rs 145.