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Last Updated : Aug 10, 2018 04:39 PM IST | Source: Moneycontrol.com

Buy JBM Auto; target of Rs 560: HDFC Securities

HDFC Securities is bullish on JBM Auto has recommended buy rating on the stock with a target price of Rs 560 in its research report dated 07 Aug 2018.

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HDFC Securities' research report on JBM Auto

JBMA recorded strong PAT growth(+26% YoY, +40% including amalgamation effect) led by jump in JVs (JBM MA Automotive ltd) profit driven by new business of Jeep compass(Fiat) and Yaris (Toyota). Consolidated Revenue (Standalone+JBMAS) rose 11% to Rs. 4.2bn led by strong growth in tool room division (+225%YoY) marginally offset by muted growth in sheet metal component division (+5% YoY).

Outlook

We  reckon  35%  PAT  CAGR  over FY18-FY20E; fuelled by improving operating leverage, richer product mix and acquisition of new clients. We value stock at Rs. 560 (18x FY20E EPS) and maintain BUY.

For all recommendations report, click here

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First Published on Aug 10, 2018 04:39 pm
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