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Last Updated : Jun 13, 2019 03:40 PM IST | Source: Moneycontrol.com

Buy Jamna Auto Industries; target of Rs 70: Dolat Capital

Dolat Capital is bullish on Jamna Auto Industries has recommended buy rating on the stock with a target price of Rs 70 in its research report dated May 24, 2019.

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Dolat Capital's research report on Jamna Auto Industries


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).


Outlook


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 positive view on the stock. We recommend BUY, with a TP of ` 70 (15x FY21E EPS).


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.




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First Published on Jun 13, 2019 03:40 pm
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