JTEKT India Ltd Stock Analysis

BSE: 520057 | NSE: JTEKTINDIA | Auto Ancillary | Small Cap

BSE Share Price Jul 06, 18:01
79.90 -0.25 (-0.31%)

DeciZen - Make an Informed Decision on JTEKT India

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

FAQs

1. Is JTEKT India Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that JTEKT India Ltd is a average quality company.

2. Is JTEKT India Ltd undervalued or overvalued?

The key valuation ratios of JTEKT India Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is JTEKT India Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of JTEKT India Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of JTEKT India:

Analysis of Financial Track Record

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

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.
JTEKT India Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 13.7%9.1%9.8%8.3%7.2%8.1%10.8%10.4%5.1%2.1%-
Value Creation Index -0.0-0.4-0.3-0.4-0.5-0.4-0.2-0.3-0.6-0.9-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,4211,4601,4921,5531,5181,2111,5191,7541,5111,3331,589
YoY Gr. Rt. %-2.7%2.2%4.1%-2.2%-20.2%25.4%15.5%-13.9%-11.8%-
Adj EPS 2.61.72.21.91.623.231.30.41.5
YoY Gr. Rt. %--35.2%30.4%-14.8%-17.9%26.9%60.6%-6.9%-56.4%-65.9%-
BVPS (₹) 1213.215.516.317.519.327.424.324.424.525.8
Adj Net Profit 52.434.144.337.73139.363.372.431.610.737
Cash Flow from Ops. 18199.216319913116217818412591.3-
Debt/CF from Ops. 24.12.11.52.31.51.310.60.5-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -0.7%-2.6%-4.3%-11.8%
Adj EPS -18.1%-22.4%-48.3%-65.9%
BVPS 8.27-3.70.5
Share Price 18.8% -6.3% -5.2% -27.2%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 23.613.615.511.99.210.813.712.75.31.86
Op. Profit Mgn % 12.911.312.213.912.912.31412.69.27.78
Net Profit Mgn % 4.534.23.83.22.94.34.42.412.3
Debt to Equity 1.51.61.10.90.90.70.40.30.10.10.1
Working Cap Days 849092869110110211912713393
Cash Conv. Cycle -36141113142432384638

Recent Performance Summary

Sales growth is good in last 4 quarters at 81.61%

Return on Equity has declined versus last 3 years average to 6.00%

Sales growth has been subdued in last 3 years -4.27%

Net Profit has been subdued in last 3 years -48.28%

Latest Financials - JTEKT India Ltd.

Standalone Consolidated
TTM EPS (₹) 1.4 1.5
TTM Sales (₹ Cr.) 1,611 1,589
BVPS (₹.) 24.8 25.8
Reserves (₹ Cr.) 582 607
P/BV 3.23 3.10
PE 59.13 53.10
From the Market
52 Week Low / High (₹) 66.15 / 132.75
All Time Low / High (₹) 1.09 / 146.45
Market Cap (₹ Cr.) 1,960
Equity (₹ Cr.) 24.5
Face Value (₹) 1
Industry PE 33.6

Management X-Ray of JTEKT India :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

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News

About JTEKT India Ltd

Established in 1984, JTEKT India Limited (formerly known as Sona Koyo Steering Systems Limited) is a subsidiary of JTEKT Corporation Japan and operates as part of JTEKT Group India. It is leading automotive components manufacturer. The globally recognised manufacturer of steering systems and automotive components, JTEKT India, caters to most vehicle manufacturers nationally as well as internationally. Some of the major original equipment manufacturers (OEMs) namely Maruti Suzuki, Toyota, Tata Motors, Mahindra & Mahindra, General Motors, Fiat India, Isuzu Motors, Renault India, Honda and Nissan procure ancillary equipment from JTEKT India.

The company also exports its products to the USA, Europe, and Japan independently as well as through overseas partners. Over the last three decades, the Company has successfully strengthened its presence in two core product technologies – steering systems and driveline components. Spread geographically to seven manufacturing units across India, JTEKT India has five Plants in Haryana (the automotive hub of India), one in Gujarat, and one in Tamil Nadu.

Business area of the company

The company is engaged in the business of manufacturing / production, supply and sale of steering systems, axles and other auto ancillaries to almost all Indian passenger car and utility vehicle manufacturers.

Products

The product portfolio of the company includes High-performance Rack and Pinion Manual Steering Gear, Hydraulic Power Steering System, Recirculating Ball Screw Assembly, Column type Electric Power Steering, Tilt & telescopic steering column, intermediate shaft, Advanced Column & telescopic intermediate shaft, Electric Power-Assist Module (EPAM), Rear Axle Assembly and other Driveline products.

Awards

2009-10:

  • The company was awarded by Tata Motors for its ‘Pursuit of Excellence in Quality’.
  • The being conferred with ‘Supply Chain Leader Award’ by 9.9 media publication.

2010-11:

  • The company was awarded, by Maruti Suzuki, Excellence Award under the categories of ‘Research & Development’ and ‘Tier 2 Up-gradation’.

2011-12:

  • Maruti Suzuki awarded the company with Production System Excellence Award & Human Resource Excellence Award.
  • The company was also awarded with 2nd prize in Kaizen competition for Mahindra Supplier group.

2012-13:

  • General Motors awarded the company with the ‘Best Practices Recognition Award’ during the year.
  • Awarded Tier-2 Upgradation Award from Maruti Suzuki. The company is participating in MACE (Maruti Centre for Excellence) program for Tier-2 (supplier) upgradation.
  • The Institute of Economic Studies (IES), one of India’s premiere research institutes, conferred ‘Excellence Award’ to the company for its prominent position in Auto Component Industry.
  • The company’s Dharuhera Plant-2 is the NCR’s first certified green building as acknowledged by Indian Green Building Council.

2013-14:

  • The company’s continuing emphasis on research and development was recognized by ACMA’s ‘Award for Excellence in Technology - Large Category’.
  • Recognized as Best Vendor Support and Best Delivery by Toyota Kirloskar Motor for its outstanding performance during FY14.

2015-16:

  • Toyota Kirloskar Motor 'Zero PPM' award for achieving Zero Defect Supplies for the year 2015.
  • Maruti Suzuki Quality Award for the year 2015.

2016-17:

  • Infosec Maestros Award 2016.
  • Business Tech Award 2016 (DQ Live)

2017-18:

  • The company has been recognised by its customer Toyota Kirloskar Motor with four awards. It received awards in the categories: (a) For achieving zero defect supplies (b) Best Gemba Improvement Activity (c) Achieving targets in the category of Quality and (d) Achieving targets in the category of Delivery.
  • Japan Institute of Plant Maintenance (JIPM) has recognised the company with an award for TPM excellence, ‘Category A’.
  • Received Global Safety Excellence Award from JTEKT Corporation, Japan among all JTEKT companies across the globe.
  • Received Zero PPM Award from Toyota Kirloskar Motor Limited.
  • Received the ‘Comprehensive Excellence Award’ from Maruti Suzuki.
  • Garnered the ‘Best Vendor System Audit Award’ from Maruti Suzuki.

Milestones

  • 1985: Technical Collaboration Agreement with Koyo Seiko Co., Japan, for manufacturing
  • 1987: Commencement of Production - Manual Steering Gear - Manual Steering Column
  • 1994: ISO-9002 Certificate by TUV-CERT, Germany
  • 1996: Production of Hydraulic Power Steering Gear
  • 1998: Established plant in Chennai
  • 2003: Established Export Oriented Unit (EOU) in Chennai
  • 2003: 'Deming Award' by JUSE, Japan
  • 2004: Acquired 21% stake in Fuji Autotech France
  • 2006: Started production of column-type Electric Power Steering
  • 2007: Established plant at Dharuhera, Haryana
  • 2007: JTEKT-Sona Automotive India Ltd. (JSAI) 
  • 2007: Sona-Fuji Kiko India Ltd (SFAI)
  • 2008: TPM Excellence Award
  • 2010: US Patent for Torque Sensor for EPAM
  • 2010: Arjan Stampings Ltd. renamed as Sona Stampings Ltd.
  • 2010: US Patent for Electric Power Assist Motor (EPAM)
  • 2011: Production starts at SKSSL Sanand, Gujarat plant
  • 2015-16: Accomplished smooth start of production of C-EPS for Mahindra’s KUV1OO
  • 2016-17: JTEKT, Japan, has now become its principal shareholder. This new development will help further consolidate its position in the Indian market by strengthening its technological know-how and innovation capabilities
  • 2016-17: Sona Koyo and its subsidiaries have now become members of the JTEKT Group
  • 2017-18: Accomplished smooth ‘Start of Production’ (launch) of Jacket Column Assembly for TMKL YAARIS
  • 2017-18: Achieved 100% OTIF delivery for its star customer JSAI
  • 2017-18: The Board of Directors of the Company have, vide resolution dated 9th February, 2018 have approved Scheme of Amalgamation of involving JTEKT SONA Automotive India Limited (Amalgamating Company) and JTEKT India Limited (Amalgamated Company) and their respective shareholders and creditors.
  • 2018-19: JTEKT Corporation’s strong global branding and a strategic merger with a group company in India in FY2019 to achieve business synergies and operational efficiencies.
  • 2019-20: The company closed FY2020 with the completion of Phase-1 of Technical Centre involving setting up of a state of art component testing facility
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