Jamna Auto: Suspension Leader with Trucking Market Leverage
Updated June 2025
Overview
Jamna Auto Industries Ltd is the largest leaf-spring and suspension systems manufacturer in India, catering to both commercial vehicles (CV) and passenger vehicles (PV). With ~65% market share in leaf springs, Jamna commands pricing power, scale benefits, and distribution strength.
Financial Snapshot FY24–FY25
| Metric | FY24 | FY25 | YoY Change |
|---|---|---|---|
| Revenue (₹cr) | 2,200 | 2,420 | +10% |
| EBITDA Margin | 15.8% | 16.5% | +0.7 pp |
| Net Profit (₹cr) | 220 | 265 | +20% |
| ROCE | 17.5% | 19.5% | +2.0 pp |
Product Revenue Split FY25
| Product Line | Rev % | Notes |
|---|---|---|
| Leaf Springs (CV) | 55% | Main revenue driver |
| Leaf Springs (PV) | 25% | Growing with PV penetration |
| Lift Axels & Suspension | 12% | Complex OEM components |
| Aftermarket & Exports | 8% | Steady aftermarket demand |
SWOT Analysis
- Strengths: Dominant market share; long-term contracts with OEMs; strong manufacturing scale.
- Weaknesses: Client concentration; raw material steel price volatility.
- Opportunities: PV share gains; electric truck segment; exports to neighbouring countries.
- Threats: Auto slowdown cycles; alternate suspension technologies; rising labour costs.
Peer Comparison
| Company | Market Cap (₹cr) | P/E | EBITDA Margin | ROCE |
|---|---|---|---|---|
| Jamna Auto | 4,500 | 22× | 16.5% | 19.5% |
| Bosch Ltd | 90,000 | 28× | 18.0% | 23.0% |
| Sundaram Brake Linings | 6,800 | 19× | 15.0% | 17.0% |
Growth Catalysts & Recent News
- Secured ₹300cr supply contract with an electric-truck OEM for suspension systems.
- Invested ₹120cr in a new state-of-the-art manufacturing plant focused on PV products.
- Entered export market via a JV in Bangladesh with projected ₹100cr first-year revenue.
Future Outlook
- Revenue growth forecasted at 12–14% CAGR supported by CV cycles and new EV orders.
- Margin expansion to ~17% due to operating leverage and better mix.
- ROCE expected to stay above 19%, supporting market valuation in low 20s P/E range.
- Watch for raw material steel price trends and EV OEM order execution.
Final Take: Jamna Auto is a well-positioned niche powerhouse in Indian auto components, with defensible dominance, margin expansion, and EV-era potential. Low visibility plus strong fundamentals make it a compelling small-mid cap pick.
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