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Change Change %
1.30 1.36%

Updated:23 Apr, 2018, 15:59 PM IST

Change Change %
1.25 1.31%

Updated:23 Apr, 2018, 16:01 PM IST

Research Report Detail

Report Date Call Price@Call Target Price
Stop Loss
Current Status Time Horizon
HDFC Securities
23-08-2017 Buy 244.00 303.00
Open Long (1Y)

HDFC Securities maintains buy on Jamna Auto

Jamna Auto's (JMNA) 1QFY18 performance came in below estimates, owing to lower volumes (-19% YoY). Surprisingly however, gross margin was stable inspite of high raw material costs, owing to a richer product mix (parabolics' share at 24% vs 22% in 1QFY17). JMNA has consistently outperformed the domestic CV industry. Also, with facilities located in close proximity to OEM plants, JMNA not only cuts down logistics' costs, but also makes it tough for new entrants to garner business from these plants. With a shift to higher tonnage vehicles, parabolic springs will be more in flavour, resulting in higher margins and realisations (parabolics' ASP higher by 20% vs conventional). Once the short-term hiccups of the GST transition subside in 2Q, we expect JMNA's presence in the aftermarket to expand.  

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