HomeNewsBusinessStocksBuy Jamna Auto Industries; target of Rs 135: ICICI Direct

Buy Jamna Auto Industries; target of Rs 135: ICICI Direct

ICICI Direct is bullish on Jamna Auto Industries recommended buy rating on the stock with a target price of Rs 135 in its research report dated August 28, 2023.

August 28, 2023 / 13:57 IST
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ICICI Direct's research report on Jamna Auto Industries

Jamna Auto Industries Ltd (JAI), headquartered in Delhi, is a manufacturer of suspension products primarily leaf & parabolic springs for Commercial Vehicles (largely M&HCV space). It has 10 Manufacturing plants spread across the country, each in close proximity to CV OEMs’, with installed capacity of ~3,00,000 metric tonnes. FY23 sales product mix: Existing Products: 56%; New Products: 44% • FY23 sales market mix: Existing Markets :80%; New Market:20% • Counts all major CV OEM’s as clients namely Tata Motors, Ashok Leyland, VECV, etc.

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Outlook

We assign a target price of ₹135 on Jamna Auto valuing it at 20x P/E on FY25E with muted commodity price outlook seen supporting margins in near to medium term.