The shares of India’s largest automotive suspension spring manufacturer, Jamna Auto Industries Ltd achieved a fresh all-time high on Wednesday. During the day, the stock reached an all-time high of ₹126.25 and is currently trading at ₹123.05, up by 4.33%, IST: 12:00.
Since the crash of covid, the share has given a multibagger return of 430% in two years. This means, if investors had invested ₹1,00,000 during the covid crash, their investment would currently amount to ₹5,30,000.
Jamna Auto Industries is a B2B company, engaged in the manufacture of suspension for commercial vehicles. The products of the company include suspension products, multi-leaf springs and parabolic springs. They are the largest automotive suspension spring manufacturers in India and among the top three in the World.
For the financial year 2022, the company reported consolidated revenue of ₹1,717 crores, an increase of 59.12% compared to the previous financial year. Consolidated
net profit was reported at ₹140 crores an increase of 94.44% compared to the previous financial year.
The company’s ROCE stands at 26.5%, ROE stands at 22.3%, PE ratio stands at 34.7 and dividend yield stands at 0.62%. Promoters hold a 50% stake in the company.
The increase in the share price of the company might be the result of a decrease in prices in the metal sector, which is a major component in the manufacture of their auto parts. This will result in an increase in the profit margin of the company.
ICICI direct has given a buy call on Jamna Auto with a target of ₹133 which is an upside of 10%
Written By – Aaron vas
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