Jamna Auto

[Aakash Group]
[Pradeep Kr. Garg]

Disclaimer: This presentation is only for educational purpose. It is not an investment advice.
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1)SEBI Registration Status
1)Not Registered

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Auto Component Industry Outlook
 Auto Component Industry Outlook

• India’s auto component industry is an important sector driving macroeconomic growth and employment. The industry
comprises players of all sizes, from large corporations to micro entities, spread across clusters throughout the country. The
auto components industry accounted for 2.3% of India’s GDP and provided direct employment to 1.5 million people. By
2026, the automobile component sector will contribute 5-7% of India's GDP. The Automotive Mission Plan (2016-26)
projects to provide direct incremental employment to 3.2 million by 2026.

• The industry is a leader in exports and provides jobs to over 3.7 crore people. From FY16-FY22, the industry registered a
CAGR of 6.35% and was valued at US$ 56.50 billion in FY22. Exports of auto components grew by 5.2% to Rs. 1.61 lakh
crore (US$ 19.49 billion) in 2022-23 from Rs. 1.41 lakh crore (US$ 19 billion) in 2021-22. In 2023-24 (April-July), the
export value of auto components/parts was estimated at US$ 2.46 billion. North America, which accounts for 32% of total
exports, increased by 8%, while Europe and Asia, which account for 31% and 26% of total exports, increased by 3% and
4%, respectively. The key export items included drive transmission and steering, engine components, body/chassis,
suspension and braking etc.

• Due to the high development prospects in all vehicle industry segments, the auto component sector is expected to see
double-digit growth in FY22. The industry is expected to stand at US$ 200 billion by FY26.
Auto Component Industry Outlook
Auto Component Industry Outlook
Auto Component Industry Outlook
Auto Component Industry –Road Ahead
Auto Component Industry –Clusters
Auto Component Industry –Clusters
 Company Overview
• Jamna Auto Industries was founded by Bhupinder Singh Jauhar in 1954. What began as a small shop in Yamunanagar selling springs now
provides all kinds of suspension solutions for Commercial Vehicles (CVs). The Company is currently headed by Randeep Singh Jauhar, who
serves as the Company’s Chairman and managing director.

• Jamna Auto provides Leaf Springs, Parabolic Springs, Lift Axles, Trailer Suspension and Air suspension, and Allied components for the
segments of Commercial Vehicles (CV).

• It has 8 existing plants, 2 newly launched & 2 plants under construction, spread across India. Its clients include the likes of Tata Motors,
Force Motors, Ashok Leyland, Scania, Volvo, Isuzu, and Bharat Benz among others.

• In FY2023, the Company also began to supply agricultural implements for the open market and it currently focuses on developing
products for M&M’s export requirements. With the intent of increasing its content per vehicle, the company has commenced the supply of
machined castings to Leyland in Uttaranchal for mining and heavy trucks.

• A new plant has been established in Jharkhand, which is anticipated to be fully operational by the second quarter of FY 24. The facility will
manufacture parabolic springs for use in Heavy Commercial Vehicles (HCVs). This is in response to the growing need for lighter products,
to comply with BS6 norms.

• The Company has also increased its Capital Expenditure (CAPEX) from Rs. 37 Cr. in FY22 to Rs. 88 Cr. in FY23, a 139% increase.

• The Company has set a target “Lakshya 50XT” which aims to earn 50% of its revenue from its new products segment, new markets, and
Dividend Payout from the current 44%, 20% & 45% respectively. It has set a deadline of 2027 to achieve these targets.
Introduction
Introduction- Locations
Management
 Business Verticals-OEM India
JAI is supplying suspension products to the major OEM's in India for all the vehicles – light, heavy , buses & mining. In India's
OEM market, JAI commands a good position.
 Business Verticals-OEM India
JAI is supplying suspension products to the major OEM's in India for all the vehicles – light, heavy , buses & mining. In India's
OEM market, JAI commands a good position.
 Business Verticals-AfterMarket India
We sell a wide variety of spare parts for Indian after-market through 300 + distributors 11500+ stores, and 15000+ mechanics. The
company is focusing on addressing market of highly consumable items.
Business Verticals-AfterMarket India
 Business Verticals-AfterMarket Exports

AI products are widely accepted throughout the world because of our high quality and
affordable prices. We currently supply springs to aftermarkets in over 15 different countries
Looking to add approx. 40 new countries in the next 12 months
Number of Existing part numbers for Exports : Approx 800
Business Vertical- Agri Implements & Equipment
 Financial Performance
Revenue & Net Profit Growth
• Jamna grew its topline by 35.36%, growing from Rs.
1718 Cr. in FY22 to Rs. 2523 Cr. in FY23 to hit a 5-
year high. Despite such high growth in revenue, the
Company was able to increase its profitability by only
19.58%, from Rs. 141 Cr. in FY22 to Rs. 168 Cr. in
FY23.

• However, the Company’s performance is really slow

on a long-term basis recording a 5-year CAGR of only
2.16% & PAT of 5.2%.

• The Company also reported a spectacular jump in

Operating cash flow increasing by 343x over last year
on account of conversions of Trade Receivables to
cash.
 Financial Performance

Profit Margins
• The Company has reported 11.27% Operating
Margins (OPM) & single digit Net Profit Margins
(NPM) of 7.24%.

• The Company hit a 3 3-year low in terms of OPM.

This goes to show how the industry as well as the
Company operate on razor-thin margins.

• Raw material is the most significant cost driver for

the Company, costing 68.3% of its Net Sales, while
fuel & employee benefit expenses cost 7.32% &
6.24% respectively.
 Financial Performance

Return Ratios
• Despite tackling razor-thin margins, the company
reports a RoCE of 27.95% & RoE of 23.02%, a 4-year
high for the Company. Return ratios increased due to
the increase in PAT of Rs. 168 Cr., which was a 5-year
high for the Company.

• The fact that the Company is able to maintain a RoE

above 20% despite single-digit margins shows that the
Company is not focused on reinvesting its earnings
rather than taking debt.
 Financial Performance
Debt Analysis
Jamna Auto is virtually a debt-free Company, with a D2E of
0.02x. Its debt-to-equity ratio fell from 0.26x last year, on
account of repayment of short-term obligations that came down
from Rs. 178 Cr. to just about Rs 19 Cr. This led to even
stronger fortification in the Company’s finances as the Interest
Coverage ratio jumped from 46.85x to 67.45x.
Financial Trends
Financials
Sales Composition
Du Pont Analysis
Company’s KEA
Snapshot
Share Price Trend
Share Price Trend
Ratios
Ratios
Financial Trend
Financial Trend
Peer Comparison
Forecast
Shareholding Pattern
 Quarterly Results

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