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Jamna Auto Industries Ltd Stock Analysis

Small Cap
Evaluated by 2111 users | BSE: 520051 | NSE: JAMNAAUTO |
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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...

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
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 22.42%19.94%14.85%6.23%15.02%33.95%34.73%31.35%31.26%10.64%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 9031,1209808331,0951,2561,2921,7382,1351,129
Y-o-Y Gr. Rt.-24%-12.5%-15%31.4%14.7%2.9%34.5%22.8%-47.1%
Adjusted EPS (Rs.) 0.961.110.730.080.761.862.643.153.441.24
Y-o-Y Gr. Rt.-15.6%-34.2%-89%850%144.7%41.9%19.3%9.2%-64%
Book Value per Share (Rs.) 3.333.834.334.554.966.098.3510.6412.7912.97
Adjusted Net Profit 37.843.828.73.33073.910512613749.6
Net Op. Cash Flow (Rs. Cr.) 12471.286.744.798.113880.81262814.1
Debt to Cash Flow from Ops 1.1121.922.80.660.110.90.50.0134.71
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Jamna Auto Industries Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 2.5%0.6%-4.4%-47.1%
Adjusted EPS 2.9%10.3%-22.3%-64%
Book Value per Share 16.321.215.81.4
Share Price 20.8% 18.2% -7.6% 161.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 35.0230.1417.391.8715.8833.6536.5933.1929.359.66
Operating Profit Margin (%) 11.888.968.875.968.7113.1815.6113.7813.0510.38
Net Profit Margin (%) 4.193.912.930.42.745.888.147.226.424.39
Debt to Equity 1.031.180.950.690.330.070.220.150.010.28
Working Capital Days 84971101157758577091146
Cash Conversion Cycle -18-6-6-1-9014171529
Entity Percentage Holding
Promoters 50.00%
Institutions 14.39%
Non-Institutions 35.61%
Pledged *0.870.600.290.000.000.002.053.574.804.54
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Jamna Auto Industries Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Jamna Auto Industries Ltd is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Jamna Auto Industries Ltd's performance infers:

Jamna Auto Industries Ltd earnings have grown by 10.3%, whereas share price has appreciated 18.2% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Jamna Auto Industries Ltd share prices over the last 10 years. Here is what we found out:

Jamna Auto Industries Ltd share price has appreciated 17.1% annually over the past ten years.

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

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
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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