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THESIS ON JAMNA AUTO INDUSTRIES LIMITED

  • ABOUT THE COMPANY
The company was incorporated in 1954. It manufactures high-quality suspension solutions for a wide range of commercial vehicles. Its product range includes Leaf Springs, Parabolic Springs, Lift Axles & Air Suspensions. It is a well- known brand in automotive Industry catering to all OEM's, Replacement Market and Export Market. For Springs – they have the highest annual capacity of over 3,00,000 MT.

It offers a complete line of suspension solutions for Indian commercial vehicles ranging from tippers, tractors, trailers, ICVs, and Buses. It caters to OEM, after market, and overseas markets.

  • MANUFACTURING CAPACITY
The company has 10 plants all over India, manufacturing high quality suspension systems. The plants comprise state-of-the-art machinery and advanced technologies. All the plants are ISO certified, adhere to international safety standards, and are strategically located in close proximity to OEMs for supplying material Just-in-Time (JIT). It has been awarded TPM category A award from Japan Institute of Plant Maintenance for its Jamshedpur, Yamuna Nagar, and Malanpur plant.

  • R & D
Since its inception in 1954, the company has been committed to providing high-quality products to its customers. It has been able to offer its customers the best services and products by constantly updating its technology and staying abreast of new changes in the market. In addition, this has allowed the company to significantly grow its clientele.

  • ACHIEVEMENTS
  1. First to Introduce Parabolic Springs for Indian Roads.
  2. First to Start Leaf Spring Design Centre in India.
  3. In House R&D Centre capable to design Multi, Parabolic Leaf Springs, Lift Axle and Air Suspension for all automobile applications.
  • PRODUCT PORTFOLIO
  1. Leaf Spring
  2. Spring Allied Components
  3. Lift Axle
  4. Lift Axle Allied Components
  5. Trailer Mechanical Suspension
  6. Trailer Air Suspension
  7. Trailer SPD
  8. Bus Air Suspension
  9. Stabilizer Bar
  10. Z-Spring
  • NEW SEGMENT
Company entered into Agricultural based segment with products - 
  1. Fertilizer Broadcaster
  2. NODO Bracket
  3. Rotavator
  4. Cultivator
  • CLINTELE
The company's clientele consists of Ashok Leyland, Force, Fuso, GM, Bharat Benz, Isuzu, Mahindra, Renault Nissan, Scania, SML Isuzu, Escorts, Tata Motors, UD Trucks, Volvo, etc.

  • CAPEX PLANS
The company plans to expand its manufacturing capacity and is in the process of setting up four new plants across India with commercial production likely to commence during March 2023-June 2024 at these facilities. Among these, the company plans to incur significant capex of Rs. 200-220 crore towards its parabolic spring plant at Adityapur, Jharkhand (to be set up under Jai Suspension Limited), which is likely to be funded largely by internal accruals.

  • LAKSHYA 50XT
The company launched its first five year plan named " LAKSHYA 50 XT " with 4 Key targets For FY27 50% Revenue from New Market, 50% Revenue from New Product, 50% Return on Capital Employed and 50% Dividend Payouts. The LAKSHYA 50XT is focused on exports & technology.

  • FINANCIAL SNAPSHOT
  1. The company is almost debt free.
  2. It has been maintaining a healthy dividend payout of 42.8%.
  3. Its Compounded Sales growth during last 3 years is 27%.
  4. Its Compounded Profit growth during last 3 years is 51%.
  5. It has a healthy ROE and ROCE of 22.9% and 27.5% respectively.
  6. It has been maintaining a healthy EBITDA margin of around 11-13%.
  7. It is trading at a PE ratio of around 25 times.
Note: This blog is only for sharing my personal opinion for educational purpose. This is not an investment advice. Please consult your financial advisor before investing.






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