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Buy Jamna Auto Industries; target of Rs 155: ICICI Direct

  • Jun 28, 2022, 08.45 AM
  • DealMoney News Service

ICICI Direct's research report on Jamna Auto Industries

Jamna Auto Industries (JAI) is a manufacturer of suspension products (leaf & parabolic) for commercial vehicles (largely M&HCV space) and was established in 1965. It has eight manufacturing plants in India, each in close proximity to CV OEMs, with installed capacity of ~3,00,000 metric tonnes. FY22 sales product mix: OEMs: 63%; new market: 37% • FY22 sales market mix: OEM: 77%; new market (aftermarket+exports):23%.


We initiate coverage on JAI under I-Direct Instinct format with a BUY rating. We value JAI at Rs 155 i.e. 22x P/E on FY24E EPS of Rs 7/share (implied EV/EBITDA ratio of ~15x, a tad premium to its last up-cycle multiple).

At 13:47 hrs Jamna Auto Industries was quoting at Rs 116.60, up Rs 4.45, or 3.97 percent.

It has touched an intraday high of Rs 117.00 and an intraday low of Rs 110.65.

It was trading with volumes of 78,827 shares, compared to its thirty day average of shares, a decrease of percent.

In the previous trading session, the share closed up 1.17 percent or Rs 1.30 at Rs 112.15.

The share touched its 52-week high Rs 124.90 and 52-week low Rs 78.20 on 17 January, 2022 and 24 August, 2021, respectively.

Currently, it is trading 6.65 percent below its 52-week high and 49.1 percent above its 52-week low.

Market capitalisation stands at Rs 4,647.94 crore.