Jamna Auto share price Technical Analysis
Jamna Auto Industries (JAMNAAUTO) share price looking strong in its technical chart with strong trading volume over the last week. The stock completed its correction and formed a double bottom at the 100 level, moving up with strong volume. On the daily chart, the Jamna Auto shares closed above all their short-term moving averages (20 DMA and 50 DMA). The trading volume of the counter closes above its long-term moving average for the last four sessions. Jamna Auto share has given break out at 125 level when it closed above its previous swing high. Momentum indicators ADX and MACD are looking bullish on the daily chart. The stock is consolidating at the 130 level. You may buy at this level or on dips at 125 to 127 level for a 20% gain in the short term.
Jamna Auto share is trading at 36.92 Price to Earning (PE) and available at 8.96 price-to-book (PB) value while sector PE is 116.54 PE and 5.64 PB value. The company offers a dividend yield of 1.15%. The debt-to-equity ratio of the company is at 0.26 times in FY22. The counter seems cheap in comparison to its sector with a low debt-to-equity ratio. It is a good stock to accumulate in correction. The stock is trading near its all-time high of 136. It is good to accumulate in correction. With the support of the broader market, the stock can reach the 144 level in the short term. Once it closes above 144 with strong volume, the stock may reach its all-time high at the 165 level. The counter has strong support at 97 and 100 levels.
Jamna Auto share price Fundamental Analysis
Jamna Auto is founded in the year 1954 in a small shop in Yamuna Nagar. It converted to a company in the year 1965. Jamna Auto Industries Limited is a provider of automotive suspension solutions for commercial vehicles. The Company has eight manufacturing facilities, strategically located at Yamuna Nagar, Malanpur, Jamshedpur, Pune, Chennai, Pilliapakkam, Hosure, and Pant Nagar. Jamna Auto manufacturers about 300 parts for OEMs and above 5000 parts for after-market. The company has a strong aftermarket network of 16000 touch points with an in-house R&D center.
Jamna Auto manufactures products such as conventional leaf springs, parabolic leaf springs, Z-Spring, Stabilizer bar, etc. for OEMs and aftermarket. The company caters to the major OEMs in India as well as global customers. The major OEM customers are Ashok Leyland, Bharat Benz, Force Motors, Tata Motors, Volvo, ISUZU, etc.
Jamna Auto Financial Analysis
Jamna Auto recorded a growth of above 70% in its revenues from INR 1089.60 Cr in FY 21 to INR 1,722.39 Cr in FY 2022. Further, the net income doubled from INR 72 Cr in FY 2021 to INR 140 Cr in FY 2022. EBITDA also grew from INR 143.80 cr in FY 2021 to INR 230.83 Cr in FY2022 on account of strong and efficient management of procurement. The company’s net sales have increased by 40% QoQ for the Q4FY22. EBIDTA in this quarter reached INR 88 Crores up by 46% QoQ and up 17% YoY, PAT reached INR 57 Crores up 51% QoQ and up 19% YoY. The EPS of the company has also increased from 1.83 in FY21 to 3.53 in FY22.
Jamna Auto is a small-cap company with a market cap of INR 5198 crores with a face value of INR 1. Return on capital employed is ~26.5 percent while return on equity is ~22.3 percent. This data supports a strong valuation of this counter. Promoters have not changed their holdings from Dec 2021 to Mar 2022 and it remained the same at 50 percent. However, DII has increased its holdings in the company from 12.87% in Dec 2021 to 13.55 % in March 2022. FIIs have slightly reduced their holdings from 6.7 percent to 5.55 percent during this period.
Headquarters in Haryana, Jamna Auto Industries is managed under strong leadership. Mr. Randeep Singh Jauhar is the Chairman & Executive Director of the company. He holds a Master of Business Administration (M.B.A.), Finance and Financial Management Services from California State University, Bakersfield California State University, Bakersfield.
Mr. Pradeep Singh Jauhar is the Managing Director and CEO of the company. Before taking this assignment, he associated with 2 companies, Fetish Marketing Limited, and Nhk Spring India Limited. Currently, Pradeep Singh Jauhar is associated with 3 Companies. He is a director with Map Auto Limited, a Managing Director with Jai Parabolic Springs Limited, and CEO at Jamna Auto Industries Limited.