While the radialisation of tyres and pre-buying of BS-VI vehicles should drive growth in coming years, near-term outlook remains challenging. We downgrade the rating of the stock to HOLD, with a revised target price of Rs. 60, based on 5.0x FY21E adj. EPS. Topline growth despite sluggish auto market JK Tyre posted Q1FY20 revenue of Rs. 2,575cr (+5.6% YoY; -4.8% QoQ). Despite weak demand in the Indian market, the company achieved a 5.7% YoY growth in domestic revenue, while revenue from Mexico declined 1.6% YoY to Rs.339cr. Sales from OEMs...