JTEKT India makes steering systems for almost every passenger car in India—basically if you’ve ever yelled at your WagonR for not turning properly, chances are JTEKT had something to do with it. With ₹2,412 Cr sales and ₹71 Cr PAT in FY25, they supply ~55% of Maruti’s steering systems and 100% of Toyota’s. Yet the stock trades at a nosebleed P/E of 53x, despite profits shrinking 31% YoY.
2. Introduction
In the auto component world, JTEKT India is like that invisible sidekick—nobody notices them until the steering fails. Born out of Japanese pedigree (Toyota group via JTEKT Corp), they dominate steering columns in India. Their tech collaboration means while rivals are figuring out hydraulic steering, JTEKT is busy shipping column-type electric power steering (EPS) like it’s sushi on a conveyor belt.
But here’s the punchline: despite supplying giants like Maruti, Toyota, Tata, M&M, Honda, Nissan, Renault, etc., their net margins are stuck at ~3%, like a reluctant autorickshaw refusing to go uphill. With ₹250 Cr fresh rights issue money incoming, the company plans to expand Constant Velocity Joints (CVJ) capacity. Investors, however, are wondering: “Bhai, pahle profits toh steer karo.”
3. Business Model – WTF Do They Even Do?
Steering Systems (96%) – Rack & pinion manual steering, hydraulic power steering, column EPS, tilt & telescopic steering, advanced columns.
