Jamna Auto - A Play On Multi-Year Commercial Vehicle Cycle; Further Re-Rating Potential: Nirmal Bang

Brake and suspension system units stand in trolleys at the automaker's factory. (Photographer: Krisztian Bocsi/Bloomberg)

Jamna Auto - A Play On Multi-Year Commercial Vehicle Cycle; Further Re-Rating Potential: Nirmal Bang

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

We are optimistic about Jamna Auto Industries Ltd. and expect it to report a strong 49% earnings compound annual growth rate over FY21-FY24E, driven by:

1. a multi-year upcycle in the domestic commercial vehicles industry, which will directly benefit Jamna Auto due to its leadership position in the original equipment manufacturer market,

2. rising share of value-added products due to a structural shift from conventional springs to parabolic springs amid continued modernisation,

3. opportunity to increase content per vehicle on the back of new launches,

4. focused efforts to increase the share of the replacement market to further diversify its sales mix.

Click on the attachment to read the full report:

Nirmal Bang Jamna Auto Industries- Initiating Coverage- 15 July 2021.pdf


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