Sunidhi Securities' report on JBM Auto Components
During Q3FY14, consolidated net profit after minority share has gone up by 80.5 percent to Rs 14.8 crore on 43 percent higher revenue of Rs 407.4 crore. OPM and NPM stood at 9.8 percent and 3.9 percent Vs 11.4 percent and 3.4 percent respectively in Q3FY13. Q3FY14 EPS stood at Rs 14.2 Vs Rs 8.0 in Q3FY13. Q3FY14 Cash EPS is Rs 24.6 Vs Rs 17.2 in Q3FY13. During 9MFY14, consolidated net profit after minority interest rose 24 percent to Rs 29.5 crore on 15 percent higher sales of Rs 986.7 crore.
OPM and NPM stood at 10.9 percent and 3.5 percent Vs 11.4 percent and 3.4 percent respectively in 9MFY13. 9MFY14 consolidated EPS stands at Rs 28.9 Vs Rs 23.3 in 9MFY13. Cash EPS for 9MFY14 stood at Rs 57.8 Vs Rs 47.5 in 9MFY13. During FY13, consolidated sales/operating income rose by 19 percent to Rs 1171 crore and consolidated net profit by 26 percent to Rs 32.6 crore. EPS stood at Rs 32.0. A cash earnings per share was Rs 64.4. A dividend of 20 percent was paid.
"The nucleus of JBMAL's growth strategy is the continued focus and thrust on promoting technological advancements and innovating new processes and practices and through its dedicated R&D team to consistently match world class standard and set new industry benchmarks of customer satisfaction."
"JBM's long years of experience working with global majors combined with the group's experience has enabled JBM acquire and imbibe the best global practices. Some of these include JIT, Pokayoke, Kanban, Lean Manufacturing, Kaizen etc. The company on its part has combined the best practices and has evolved its own unique system called 'The JBM Way'."
"By continuously benchmarking to new emerging global processes, practices and understanding the expectations of customers, JBM has invested in production technologies and innovation that have provided it a distinct edge. At the CMP of Rs 91, the share is trading at a P/E of 2.2x on FY14E and 1.7x on FY15E. We recommend BUY with a target price of Rs 165 in the medium-to-long term at which the share will trade at a P/E of 3.0x on FY15E," says Sunidhi Securities research report.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
