(1/14)
About:
Jamna Auto Industries is India’s market leader in automotive suspension solutions and is the second largest producer in the world of multi-leaf springs. It has plants at various locations in India.
The promoters, the Jauhar family, own 50% stake in the company.
About:
Jamna Auto Industries is India’s market leader in automotive suspension solutions and is the second largest producer in the world of multi-leaf springs. It has plants at various locations in India.
The promoters, the Jauhar family, own 50% stake in the company.
(2/14)
Industry:
Indian CV manufacturers feel that the need to replace ageing fleet and a revival in the economy may generate demand for close to half a million light-medium and heavy-duty trucks worth $10 bn over the next 12-18 months.
Industry:
Indian CV manufacturers feel that the need to replace ageing fleet and a revival in the economy may generate demand for close to half a million light-medium and heavy-duty trucks worth $10 bn over the next 12-18 months.
(3/14)
Policies such as the scheme for scrapping old vehicles and production-linked incentives will also play a role in driving the demand for commercial vehicles.
The average age of India’s truck fleet is at a record high. The proportion is replacement demand is at 35%
Policies such as the scheme for scrapping old vehicles and production-linked incentives will also play a role in driving the demand for commercial vehicles.
The average age of India’s truck fleet is at a record high. The proportion is replacement demand is at 35%
(4/15)
It has a leadership position in the domestic leaf and parabolic spring market, aided by scale & strategic proximity to its customers across its manufacturing locations in India. This has helped them to maintain a dominant share with most CV OEMs (market share of 65-70%)
It has a leadership position in the domestic leaf and parabolic spring market, aided by scale & strategic proximity to its customers across its manufacturing locations in India. This has helped them to maintain a dominant share with most CV OEMs (market share of 65-70%)
(5/14)
Strengths:
Strong business position:
JAI is the market leader in the domestic M&HCV OEM market for leaf springs, with a dominant share of its business coming from two of the leading CV OEMs, TML and ALL. JAI is expected to maintain its dominant position in the market.
Strengths:
Strong business position:
JAI is the market leader in the domestic M&HCV OEM market for leaf springs, with a dominant share of its business coming from two of the leading CV OEMs, TML and ALL. JAI is expected to maintain its dominant position in the market.
(6/14)
Sales mix-
In recent years, JAI has witnessed a growth in revenue contribution from the higher value-accretive products such as parabolic springs. The contribution of parabolic springs to JAI’s sales revenue has improved gradually to nearly ~28% in FY22 from 9% in FY11.
Sales mix-
In recent years, JAI has witnessed a growth in revenue contribution from the higher value-accretive products such as parabolic springs. The contribution of parabolic springs to JAI’s sales revenue has improved gradually to nearly ~28% in FY22 from 9% in FY11.
(7/14)
Strategic proximity to OEM customers–
JAI’s manufacturing plants are spread across 8 locations in 🇮🇳, which are near all its customer locations. Its competitors have a limited presence in terms of geographical footprint which is reflected by its dominant market position
Strategic proximity to OEM customers–
JAI’s manufacturing plants are spread across 8 locations in 🇮🇳, which are near all its customer locations. Its competitors have a limited presence in terms of geographical footprint which is reflected by its dominant market position
(8/14)
Comfortable credit profile –
JAI continues to maintain a comfortable credit profile, evident from healthy coverage indicators and capital structure, with interest coverage of 19.8 times in FY2021 (73.4 times in 9M FY2022) and TOL/TNW of 0.5 times as on March 31, 2021
Comfortable credit profile –
JAI continues to maintain a comfortable credit profile, evident from healthy coverage indicators and capital structure, with interest coverage of 19.8 times in FY2021 (73.4 times in 9M FY2022) and TOL/TNW of 0.5 times as on March 31, 2021
(9/14)
Challenges:
• Cyclicality–
JAI has dependence on the M&HCV segment, which exposes it to the inherent cycle nature of the underlying industry.
Its ability to scale up to a level that can offset any sharp decline in volumes during downturn, is yet to be demonstrated.
Challenges:
• Cyclicality–
JAI has dependence on the M&HCV segment, which exposes it to the inherent cycle nature of the underlying industry.
Its ability to scale up to a level that can offset any sharp decline in volumes during downturn, is yet to be demonstrated.
(10/14)
Concentration Risk:
JAI’s 2 major customers contributes ~57% & ~60% to its sales revenue in FY21 & FY22 respectively, with VE Commercial Vehicles Ltd & Daimler being JAI’s other leading OEM clients. This results in high client concentration risk.
Concentration Risk:
JAI’s 2 major customers contributes ~57% & ~60% to its sales revenue in FY21 & FY22 respectively, with VE Commercial Vehicles Ltd & Daimler being JAI’s other leading OEM clients. This results in high client concentration risk.
(11/14)
Liquidity:
The company does not have any long-term debt repayments & continues to enjoy healthy financial flexibility.
It is expected to generate healthy cash accruals, going forward, which is likely to further strengthen its liquidity profile.
Liquidity:
The company does not have any long-term debt repayments & continues to enjoy healthy financial flexibility.
It is expected to generate healthy cash accruals, going forward, which is likely to further strengthen its liquidity profile.
(12/14)
In FY22, it generated 79% of its sales from OEMs, followed by 20% and 1% from replacement and export segments.
The company’s leaf springs, drive more than 90% to its sales. Its top 3 clients, ALL, TML and Daimler India accounted for ~68% of its turnover in FY2022
In FY22, it generated 79% of its sales from OEMs, followed by 20% and 1% from replacement and export segments.
The company’s leaf springs, drive more than 90% to its sales. Its top 3 clients, ALL, TML and Daimler India accounted for ~68% of its turnover in FY2022
(13/14)
Shareholding Pattern:
Promoters: 49.98%
FIIs : 5.55%
DIIs : 13.55%
Public : 30.92%
Debtor days : 61
Working Capital Days : 38
ROCE% : 26%
ROE% : 22.3%
OPM : 14%
Dividend Payout : 42%
Shareholding Pattern:
Promoters: 49.98%
FIIs : 5.55%
DIIs : 13.55%
Public : 30.92%
Debtor days : 61
Working Capital Days : 38
ROCE% : 26%
ROE% : 22.3%
OPM : 14%
Dividend Payout : 42%
(14/14)
Since the company is affected by overall Cyclicality of auto industry, how do you see the company performing in the medium term?
@caniravkaria @kuttrapali26 @AdityaD_Shah @DhanValue
Since the company is affected by overall Cyclicality of auto industry, how do you see the company performing in the medium term?
@caniravkaria @kuttrapali26 @AdityaD_Shah @DhanValue
• • •
Missing some Tweet in this thread? You can try to
force a refresh
