🛻 “Jamna Auto: King of Leaf Springs or Just Dead Weight?”

🛻 “Jamna Auto: King of Leaf Springs or Just Dead Weight?”

🔍 At a Glance

Jamna Auto Industries is India’s undisputed boss of leaf spring suspensions, supplying to nearly every commercial vehicle OEM worth its diesel. From Tata Motors to Ashok Leyland, they all bounce on Jamna’s springs. But with CV cycles as moody as Bollywood heroes post-interval, is this ₹3,778 Cr microcap ready for a rerate or stuck in a metal fatigue loop?


1. 🧩 Introduction with Hook

You know that “thak thak” noise from a truck on a pothole-filled highway? That’s Jamna Auto saying hello from underneath.

  • Born in 1965, Jamna’s a suspension specialist
  • Commands 62–65% market share in the OEM CV leaf spring space — yes, monopoly feels
  • But the stock is down 37% from its ₹150 peak and trades at ₹94
  • Is it a hidden spring waiting to rebound or a bounced-out stock? Let’s dissect 🧠

2. 🏭 Business Model – WTF Do They Even Do?

  • Core Biz: Leaf springs (conventional + parabolic), lift axles, air suspensions
  • Customer Base: Tata, Ashok Leyland, Eicher, Mahindra, Daimler — basically the CV Avengers
  • Segments:
    • OEMs (main business)
    • Aftermarket (30% revenue — margin accretive)
    • Exports (small but growing)
  • Recent Push: New plant in Indore to expand air suspension manufacturing

🧠 Jamna doesn’t diversify for the heck of it — it’s sticking to its niche and going deep.


3. 💰 Financials Overview – Profit, Margins, ROE, Growth

MetricFY21FY22FY23FY24FY25
Revenue (₹ Cr)1,0791,7182,3252,4272,270
Net Profit (₹ Cr)73141168205180
ROE (%)16%25%28%31%24%
OPM (%)12%13%11%14%13%

⚠️ Growth hit a speed bump in FY25, but margins are still solid.

📉 FY25 was a bit of a slowdown due to weak CV sales — cyclical pain.


4. 📉 Valuation – Is It Cheap, Meh, or Crack?

  • P/E: 21x (reasonable for a high-ROCE, high-yield play)
  • P/B: 3.8x (meh)
  • Dividend Yield: 2.53% with 46% payout — like a smallcap bond fund lol
  • Fair Value Range: ₹110–₹125

📊 Based on FY26E EPS of ₹5.5 and a forward P/E of 20–23x

👉 So, it’s not a “dirt cheap” value stock. But it’s not crack either.


5. 🍿 What’s Cooking – News, Triggers, Drama

  • 🏭 ₹145 Cr new plant in Indore for suspension systems — production by Dec 2026
  • 🤝 MOU with VE Commercial Vehicles — volume boost expected
  • ⚖️ Multiple GST litigations — ₹7 Cr+ demand dropped, some still pending
  • 🧾 Income tax show-cause notices — annoying, but manageable
  • 🪙 FY25 dividend: ₹1.10/share (1.1% of CMP)

🎯 Growth capex + new OEM biz = silent buildup for FY26


6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?

MetricFY25
Debt₹140 Cr
Cash & Equivalents₹218 Cr
Net Cash Position
Reserves₹953 Cr
Equity Capital₹40 Cr

🧠 Debt-to-equity is chill. Working capital needs have also come down from 36.6 days to 26.5 days. Efficiency alert!


7. 💸 Cash Flow – Sab Number Game Hai

YearCFO (₹ Cr)FCF (Est.)
FY23₹374 Cr₹250 Cr
FY24₹90 Cr₹30–40 Cr
FY25₹289 Cr₹150–160 Cr

💡 Strong bounceback in operating cash flows in FY25 despite revenue dip.


8. 📊 Ratios – Sexy or Stressy?

RatioFY25
ROCE24%
ROE19%
OPM13%
Working Capital Days26.5
Inventory Days82
Debtor Days25

🔥 The metrics scream capital-efficient manufacturing.


9. 💵 P&L Breakdown – Show Me the Money

  • Revenue CAGR (5Y): 15%
  • Profit CAGR (5Y): 30% 😮
  • FY25 dip was temporary, but high margins and decent EPS consistency (₹4.5–5.1 range) is a good sign.

10. 🤼 Peer Comparison – Who Else in the Game?

CompanyMkt CapP/EROCEOPMDiv Yld
Jamna Auto₹3,778 Cr21x23.5%13.3%2.53%
Bharat Forge₹62,845 Cr62x13.1%17.8%0.65%
Schaeffler₹61,459 Cr60x25.7%18.4%0.71%
Uno Minda₹63,117 Cr67x18.9%11.2%0.2%

📉 Jamna trades at a fraction of the valuation of its peers despite similar or better capital efficiency. Smallcap discount much?


11. 🧮 Miscellaneous – Shareholding, Promoters

  • Promoter Holding: Stable at ~49.93%
  • Public Holding: Up from 29% to 41.7% in 2 years 📈
  • Institutions (FII+DII): Combined 8.37% (down from 20%+ earlier)
  • Retail Army: 2.6 lakh shareholders — smallcap lovers on board 💘

⚠️ Red flag? Institutional confidence dropped post FY24.


12. 🧑‍⚖️ EduInvesting Verdict™

Jamna Auto is the kind of company that does one thing, does it well, and does it silently — like an introvert uncle who’s built a 3BHK by just doing what he knows.

✅ High ROCE, decent dividend, zero hype
⚠️ But vulnerable to CV cycles and macro swings
🚧 New capex + OEM wins might play out by FY27 — be patient

FV Range: ₹110–₹125

🧠 Hold your horses (or trucks) — this isn’t a 10-bagger, but it’s got leaf-thick fundamentals. Just don’t expect it to fly.


✍️ Written by Prashant | 📅 July 6, 2025
Tags: Jamna Auto, Auto Ancillary, CV Suspension, Microcap, Value Stock, Indore Plant, VE Commercial Vehicles, NSE Smallcap

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