The technical trend for Jamna Auto Industries has shifted from mildly bullish to bullish, supported by a combination of weekly and monthly indicators. The Moving Average Convergence Divergence (MACD) shows a bullish stance on a weekly basis and a mildly bullish position monthly. Bollinger Bands reinforce this positive technical outlook with bullish signals on both weekly and monthly charts. Daily moving averages also align with a bullish trend, while the On-Balance Volume (OBV) indicator confirms buying interest over weekly and monthly periods. However, some indicators such as the KST (Know Sure Thing) and Dow Theory present mixed signals, with mildly bearish tendencies on a monthly scale, suggesting a degree of caution in the technical outlook.
Just made the cut! This Mid Cap from the Heavy Electrical Equipment sector entered our elite Top 1% list recently. Discover it before the crowd catches on!
- Top-rated across platform
- Strong price momentum
- Near-term growth potential
From a valuation perspective, Jamna Auto Industries is trading at a Price to Book Value of 4.2, which is considered fair relative to its peers’ historical averages. The company’s Return on Equity (ROE) stands at 17.3%, indicating efficient utilisation of shareholder funds. The market capitalisation grade remains moderate, reflecting the company’s mid-cap status. Despite a slight decline in the stock price on the day of -0.79%, the stock has demonstrated robust returns over longer periods, including a 103.33% return over five years and an impressive 399.73% return over ten years, outperforming the Sensex benchmark in the same timeframe.
Financially, Jamna Auto Industries reported flat performance in the second quarter of FY25-26, with Profit Before Tax (PBT) excluding other income at ₹53.21 crores and Earnings Per Share (EPS) at ₹1.00, marking the lowest quarterly figures in recent periods. Nevertheless, the company maintains a low average Debt to Equity ratio of 0.05 times, underscoring a conservative capital structure. Net sales have grown at an annual rate of 26.27%, while operating profit has expanded by 59.73%, signalling healthy long-term operational growth. Institutional investors have increased their stake by 1.08% over the previous quarter, now holding 9.4% collectively, reflecting growing confidence from sophisticated market participants.
Jamna Auto Industries caught your attention? Explore our comprehensive research report with in-depth analysis of this small-cap Auto Components & Equipments stock – fundamentals, valuations, financials, and technical outlook!
- Comprehensive research report
- In-depth small-cap analysis
- Valuation assessment included
Quality metrics for Jamna Auto Industries remain notable, with management efficiency highlighted by a high ROE of 20.96%. The company’s operational discipline and capital allocation strategies contribute to this strong performance metric. However, investors should be mindful of the flat quarterly results and the slight contraction in profits over the past year, which registered a decline of 8.3%. The stock’s recent price movements have been relatively stable, with a 52-week high of ₹114.20 and a low of ₹68.52, while the current price hovers near ₹109.39.
In summary, the adjustment in Jamna Auto Industries’ evaluation reflects a balanced consideration of technical momentum, valuation fairness, financial stability, and quality of management. While the company exhibits promising long-term growth and institutional interest, short-term financial results suggest a cautious approach. Investors analysing this stock should weigh these factors carefully within the broader context of the Auto Components & Equipments sector and prevailing market conditions.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
