Fundamental Analysis

JTEKT INDIA LTD 

Ticker : 520057  
BUY : Rs 80  
Target : Rs 89 

JTEKT India Ltd is engaged in the manufacturing of products such as steering systems, driveline components, bearings, machine tools, electronic control devices, home accessory equipment, etc. Its activities are focussed on four major product technologies: bearings, steering systems, driveline components, and machine tools. On a consolidated quarterly front, its net sales declined by 9.35 per cent in Q2FY21 to Rs 354.62 crore from Rs 391.19 crore in Q2FY20. The company reported an operating profit of Rs 34.93 crore in Q2FY21, down by 14.09 per cent from Rs 40.66 crore reported in Q2FY20. Similarly, the net profit decreased by 25.09 per cent from Rs 11.70 crore reported in Q2FY20 to Rs 8.76 crore reported in Q2FY21. The sales of automobile companies are picking up and are coming back to the pre-COVID level. Being the supplier of ancillary equipment to major automobile companies, it is expected that JTEKT India will perform better in the coming future. Hence, we recommend a BUY.