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.
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).
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
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