Jamna Auto Industries Ltd. share price target

Little stymied by recovery in domestic CV industry - MHCV domestic production jumped by 9.4% in Q3- Jamna reported some 50.2% growth in sales in Q3 after ravaging fall in sales in the first half of FY21. With increased sales "velocity", operating profits jumped by a pleasing 139.2% to Rs 50.98 crs compared with Rs 21.31 crs in the same quarter a year ago, thus bolstering OPMs by a dazzling 553 bps to 14.9%. With reduced...

Jamna Auto's posted decent numbers in Q2FY21 amid challenging environment. EBIDTA grew 3% YoY to Rs 166mn with expanded margin of 8.9% (+149bps YoY), led by cost control measures and richer mix (increase in mix for replacement revenue). Capex in H1FY21 was Rs 34mn, CFO stood at Rs 1.43bn and the company generated FCF of Rs 1.39bn driven by efficient working capital management. The company has also reduced its net debt to Rs...

Battered by no meager stress in Indian CV industry, Jamna Industries reported a dismal 56.2% drop in revenues - though revenues improved marginally from Q3 - in the fourth quarter of current fiscal, thus reporting five straight quarters of revenue decline. Put differently, average revenues in the last quarters of FY20 have declined by a stunning 55% over average revenues reported in the same period a year ago. Grave stress in Indian MHCV industry last fiscal - sales drop 42.4% - explain much of the 47% drop in revenues last fiscal. Current demand outlook of...

Jamna Auto's Q4FY20 numbers beat our estimates. Net Revenue was Rs 2.37bn (-57% YoY), due to the slowdown in the CV segment and the Covid-19 lockdown. However, operating margin sharply rose sequentially (+247bps QoQ) to 11.8% due to fall in RM prices and...

Jamna Auto reported weak set of numbers in Q1FY20. The revenue was ` 4.2bn (-25% YoY on a high base), due to slowdown in CV sales along with weaker product mix (affected by a shift in demand towards lower tonnage vehicles, a lower revenue from parabolic springs & lift axle and muted aftermarket sale). However, the company is maintaining its dominance in the domestic OEM segment with 71% market share in leaf springs and focused on widening its distribution network (through tie-ups with retailers and garage personnel in aftermarket segment). The management has also...

Strangled by no imperceptible slowdown in Indian CV industry, most prominently the stalwart M&HCV; - stark change in volumes not invisible as MHCV dispatches tumbled not indiscernibly by 5.5% (yoy) in the second half of last fiscal compared to 48.1% growth in the first half Jamna's revenue from operations slid 3.4% in the second half of last fiscal. The condition got no better in Q4 as Jamna reported 9% drop in revenues...

Jamna Auto's (JAMNA) Q4FY19 EBIDTA declined 23% YoY to ` 690mn with an operating margin of 12.7% (-49bps QoQ, below our estimate 13.2%), due to an adverse product mix (lower proportion of aftermarket). Given the superior return ratios, ROE/ROCE of 30%, strong market share in leaf springs (70%), and compelling valuation of 12x for FY20, we maintain our...

Our Target Price is revised to Rs 75(16x Dec-20E EPS) Jamna Autos (JAMNA) 3Q Revenue and EBITDA numbers were largely in line estimates, However APAT (at Rs, 286mn, -10% YoY) was suppressed due to higher depreciation (+17% QoQ) and interest charges (38% QoQ) as well as higher tax rate (38% of PBT). Revenue stood at Rs 4.86bn (+3.4% YoY, 2% below est), impacted by product mix due to shift in demand towards lower tonnage vehicles and lower revenue from parabolic springs and lift axle. EBIDTA rose 3% YoY to Rs 636mn, with operating margin at 13.1% %(+66bps QoQ, in line with est).

Jamna Auto Industries (JAI) reported mixed set of numbers in Q2FY19. While revenue growth was strong 42.4% YoY, contraction in operating margin and higher interest cost restricted net profit growth to 20.6% YoY during the quarter. The strong revenue growth was on account of 35.8% YoY increase total CV production and 100bps market share gains. However, operating margins contracted 66bps mainly due to higher raw material cost.

Fostered by increased OEM demand, Jamna's sales more than doubled in Q1to Rs 562.19 crs ($83.9m) compared to Rs 271.37 crs ($42.1m) in the same period a year ago. OPMs expanded too (though down sharply from 15% in Q4FY18) from 11.2% to 13.4% helped by disproportionate growth in other expenses (+80.9%). Post tax earnings climbed by a...

We value the stock at Rs 100 (20xFY20E) vs 107 earlier. Maintain BUY. Jamna Auto (JAMNA) posted strong numbers for 1Q. Revenue jumped 107% YoY to Rs 5.6bn driven by strong growth in M&HCV; truck segment (led by favorable base effect due to GST issue last year), increased volume in Lift Axle and price hike (~Rs 4K/per ton). EBIDTA jumped 146% YoY to Rs 753mn with 13.4% margin (+214bps YoY/-160bps QoQ, below est) impacted by muted aftermarket revenue. APAT stood at Rs 400mn (+130% YoY).

Consolidated net Revenue grew by +107% YoY / -6% QoQ to Rs5.6bn, above our estimates. Top line performance was driven by volume growth of M&HCV; goods segment led by favorable base effect of GST last year. Production volume of M&HCV; goods segment increased +146%YoY to 95,847 units. Gross margin for the quarter declined -90 bps QoQ due to higher RM cost. RM cost for the quarter increased +117% YoY / -7% QoQ to Rs3.5 bn. EBITDA margin improved +220 bps YoY/ -160 bps...

Jamna Auto Industries (JAI) is India's largest and world's second largest manufacturer of leaf spring and parabolic springs for commercial vehicles. JAI enjoys a commanding market share of 72% amongst Indian OEM's and produces ~500 parts for OEMs and ~2,000 parts for after market.

Jamna Auto Industries (JAI), a manufacturer of tapered leaf springs and parabolic springs for CV's is a structural story on demand for higher tonnage trucks and CV cycle upswing. We expect a Revenue/EBITDA/PAT CAGR of 19%/25%/30% for JAI over FY1820E, as we envisage multiple triggers: i) demand for parabolic spring to raise due to higher tonnage trucks; ii) content per vehicle to increase 3x and iii) aftermarket opportunity iv) CV cycle is in upswing. We initiate coverage on JAI, with a BUY rating...