Shares of this small-cap jumped around 3 percent after announcing capacity expansion for MS-Gear Line. The shares have delivered around 42 percent returns to its shareholders in one year. 

With a market capitalization of Rs. 3,693 crores, the shares of JTEKT India Ltd started Tuesday’s trading session positively at Rs. 149.25 compared to its previous close of Rs. 148.30. During the trading session, the shares hit a high of Rs. 159, gaining around 3 percent and closed the day at Rs. 151 apiece. 

Such a bullish movement in the share price was observed after the company in an exchange filing announced capacity expansion for MS-Gear Line. This additional capacity will help the company to cater for the demand of fast-growing Indian OEMS.

Furthermore, the investment is to be finalized and approved by the board while framing the installation of capacity and the above-mentioned capacity is to be added by July 2025. 

Coming onto the company’s financial statements, the revenue decreased by 5 percent from Rs. 584 crores during the September quarter to Rs. 552 crores in the December quarter. On the other hand, the net profits declined by 20 percent from Rs. 30 crores to Rs. 24 crores during the same period. 

Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 7.36 percent during FY 21-22 to 13.06 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 9.69 percent to 15.99 percent during the same timeframe. Furthermore, the net profit margin increased from 2.85 percent during FY21-22 to 4.26 percent during FY22-23. 

According to the BSE data, Ace Investor Mr Mukul Agrwal, entering the stock in September 2018, currently holds 31,66,545 lakh equity shares equivalent to a 1.25 percent stake in this company. The current holding value of his investment amounts to Rs. 47.7 crores. 

Headquartered in New Delhi, JTEKT India was incorporated in 1984. The company is primarily engaged in the business of manufacturing steering systems & other auto components for passenger car and utility vehicle manufacturers in the automobile sector. 

Written By Vaibhav Patil 


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