Jamna Auto Industries Ltd Stock Analysis

BSE: 520051 | NSE: JAMNAAUTO | Auto Ancillary | Small Cap

BSE Share Price Jan 20, 18:01
106.05 -4.65 (-4.20%)

DeciZen - Make an Informed Decision on Jamna Auto Inds.

Overall Rating

1. Quality

2. Valuation

Overvalued
P/E P/S EV/EBITDA

3. Price Trend

FAQ's

1. Is Jamna Auto Industries Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Jamna Auto Industries Ltd is a below average quality company.

2. Is Jamna Auto Industries Ltd undervalued or overvalued?

The key valuation ratios of Jamna Auto Industries Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Jamna Auto Industries Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Jamna Auto Industries Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Jamna Auto Inds.:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Jamna Auto Industries Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 19.9%14.9%6.2%15%34%34.7%31.4%31.3%10.6%12.8%-
Value Creation Index 0.40.1-0.60.11.41.51.21.2-0.2-0.1-

Growth Parameters

Growth Parameters Colour Code Guide
Sales 1,1209808331,0951,2561,2921,7382,1351,1291,0791,475
YoY Gr. Rt. %--12.5%-15%31.4%14.7%2.9%34.5%22.8%-47.1%-4.4%-
Adj EPS 1.10.70.10.81.92.63.23.41.21.93.1
YoY Gr. Rt. %--34.2%-89%850%144.7%41.9%19.3%9.2%-64%49.2%-
BVPS (₹) 3.84.34.656.18.410.612.81314.515.2
Adj Net Profit 43.828.73.33073.910512613749.673.9124
Cash Flow from Ops. 71.286.744.798.113880.8126281-1.4215-
Debt/CF from Ops. 21.92.80.70.10.90.50-103.20-

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Sales -0.4%-3%-14.7%-4.4%
Adj EPS 5.8%-0.1%-16.3%49.2%
BVPS 16191112.1
Share Price 28.5% 23.3% 20.8% 68.9%

Key Financial Parameters

Performance Ratio Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 30.117.41.915.933.736.633.229.49.713.520.9
Op. Profit Mgn % 98.968.713.215.613.813.110.412.513.8
Net Profit Mgn % 3.92.90.42.75.98.17.26.44.46.98.4
Debt to Equity 1.210.70.30.10.20.200.300
Working Cap Days 971101157758577091146107106
Cash Conv. Cycle -6-6-1-90141715294032

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 20.90%

Sales growth is good in last 4 quarters at 148.84%

Sales growth has been subdued in last 3 years -14.68%

Net Profit has been subdued in last 3 years -16.26%

Latest Financials - Jamna Auto Industries Ltd.

Standalone Consolidated
TTM EPS (₹) 3.1 3.1
TTM Sales (₹ Cr.) 1,424 1,475
BVPS (₹.) 15.4 15.2
Reserves (₹ Cr.) 574 567
P/BV 6.88 6.96
PE 34.27 34.05
From the Market
52 Week Low / High (₹) 58.35 / 124.90
All Time Low / High (₹) 0.10 / 124.90
Market Cap (₹ Cr.) 4,226
Equity (₹ Cr.) 39.9
Face Value (₹) 1
Industry PE 42

Management X-Ray of Jamna Auto Inds. :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.002.053.574.804.542.722.722.722.72
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About Jamna Auto Industries Ltd

The company was promoted by Mr Bhupinder Singh Jauhar. He started the Tapered Leaf Spring business in 1954 in a small shop in Yamuna Nagar which was converted in the company form in the year 1965. The Company is public company domiciled in India and is incorporated under the provisions of the Companies Act. Its shares are listed on two recognized stock exchanges in India.

Jamna Auto Industries is India's largest, and amongst world's third largest, manufacturer of tapered leaf springs and parabolic springs for automobiles. The company was first to introduce parabolic springs in India.

The company has indigenous R&D Centre capable to design Multi, Parabolic Leaf Springs, Lift Axles and Air Suspension for all automobile applications. The R&D Centre has facility of in-house validation and testing of products using Servo Actuator to simulate actual vehicle conditions. The Company's engineering & design strength and developmental capabilities makes it a partner of choice with most of customers. The company's R&D team work closely with customers in design modification and value engineering in Tapered Leaf and Parabolic Springs which enhance the vehicles' load bearing capacity and overall efficiency.

Business area of the company

Jamna Auto Industries is engaged in manufacturing and selling of Tapered Leaf, Parabolic Springs and Lift Axles.

Products

  • Rear Air Suspension - ‘Cow Horn Style’
  • Lift Axle - Steerable / Non Steerable
  • Bogie Suspension - Tandem Axle
  • Multileaf Springs
  • Parabolic Springs

Milestone & Awards

2009 

  • Started Assembly unit at Uttarakhand (under subsidiary)
  • In house R&D centre set up at Malanpur

2010

  • Tata Motors Ltd converted its two high selling models into parabolic springs
  • Entered into technical assistance agreement with Ridewell Corporation USA for Air Suspension and Lift Axle 
  • Received the Best Vendor Gold Award from Ashok Leyland Ltd for 2009-2010
  • Received an award from Tata Motors Ltd in recognition of JAI’s long and enduring relationship
  • Purchased land in Chennai for setting up facility for air suspension and lift axle

2011

  • Promoters and Clearwater Capital Partners infused fresh equity, prepayment of term loans brought down debt
  • Shares of the Company listed in NSE
  • Started paying Dividend
  • Jamshedpur plant commenced manufacturing operations
  • Started Assembly unit at Lucknow
  • Filed patent application in India for Air Suspension
  • Supplies to UD Trucks Corporation, Japan (Volvo subsidiary), Mahindra Navistar Automotives Ltd and Ashok Leyland Nissan Vehicles Ltd started
  • Acquired land in Hosur for setting up facility for manufacturing of springs

2012

  • Agreement to supply Lift Axle signed with Ashok Leyland Ltd.
  • Started developing springs for Bharat Benz
  • Purchased land in Pune for setting up facility for manufacturing of springs and additional land in Malanpur and Yamuna Nagar for expansion

2013

  • Lift Axle and Air Suspension products launched
  • Received Silver Award from Ashok Leyland Ltd. for best in class performance in RAMP UP in development and supply of Lift Axles
  • Received Certificate of excellence award from TATA Motors Ltd. for supply of quality product and approach towards continual improvement in quality
  • Supplies to Bharat Benz and Renault Nisan commenced
  • Certificate of Appreciation - Best in Class Performance in Quality from Ashok Leyland Ltd. for the year 2012-13
  • Production commenced at Hosur plant
  • Capacity expansion at Malanpur completed

2014

  • OEM market share increased to 64% from 57%
  • Expansion at Hosur Plant started

2017

  • The company’s Malanpur and Yamuna Nagar plants were awarded the TPM Excellence Category ‘A’ award by Japan Institute of Plant Maintenance

2018

  • Jamshedpur plant was awarded the TPM Excellence Category ‘A’ award
  • The Company was also awarded as ‘Star SME’ in the Business Standard annual awards 2018

2019

  • Best Overall Excellence in Operations by Auto Components India (Magazine) 2019
  • The Company has incorporated a wholly owned subsidiary company, viz., Jai Automotive Components Limited. The subsidiary has acquired land on lease at Indore from Madhya Pradesh State Industrial Development Corporation.

2020

  • Assembly unit of Jai Suspension Systems LLP at Lucknow (U.P.) was closed in FY 2019-20
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