Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
PT. Gajah Tunggal Tbk specializes in the manufacturing and distribution of a comprehensive range of tires for diverse vehicles, encompassing passenger cars, SUVs, commercial and industrial vehicles, off-road applications, and motorcycles. These products are marketed under prominent brands such as GT Radial, Giti, Gajah Tunggal, Zeneos, and IRC. In addition to tires, the company produces and offers a variety of other rubber-based goods, including synthetic rubber, tire cords, inner tubes, flaps, o-rings, among others. Its manufacturing capabilities further extend to nylon filament yarn, polyester chips (critical raw materials for nylon cords), and fishing net yarn. The firm also participates in general trading and e-commerce ventures. Its market presence spans numerous global regions, with sales in Indonesia, the United States, across Asia, Europe, the Middle East, Africa, Australia, and Oceania. Established in 1951, PT. Gajah Tunggal Tbk maintains its headquarters in Jakarta, Indonesia.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBIT