See 30-35% upside in Jamna Auto Industries: Sahil Kapoor

Sahil Kapoor of Edelweiss Broking told CNBC-TV18, "Jamna Auto Industries is a significant player. It's a market major in the segment that it is operating in largely. The CV suspension leaf spring segment, major share is controlled by this company. Right now the marketcap is only Rs 1,000 crore, but overall if you look at the medium to heavy commercial vehicles (M&HCV) sector, the overall market size for this company is closer to Rs 1,500 crore to Rs 1,800 crore and once the GST kicks in, you will see market size for this company, which is almost four times of the current market, which it is operating in."He further added, "We feel Jamna Auto has significant amount of levers on the macro front. On the micro front, it is a significant player because of its presence geographically. It is present in about six CV hubs, so it has got scale plus it has also got the effective cost advantage. So these two factors are going to play out significantly. However, 2015 was only one year, which became significantly positive for Jamna. I think 2016 will play out even more positively for Jamna Auto. So, we feel another year of outperformance in Jamna and 30-35 percent upside in it as well."