Power My Portfolio Value Pick : JAY BHARAT MARUTI

JAY BHARAT MARUTI (JBM), Incorporated in 1987 as a joint venture with Maruti Suzuki India Ltd. (MSIL).Since 30 year , JBM is major supplier of Maruti Suzuki. Company is tier- 1 supplier to the automotive OEM industry and caters services to esteemed clients that include Ashok Leyland, Bajaj Auto Ltd, Fiat, Ford, General Motors Corporation, Honda, Hero, JCB, Mahindra, Maruti Suzuki, Renault, Nissan, TATA, Toyota, TVS, Volvo-Eicher, Volkswagen and many more.

Key Facts:

  • JBM Group has 35 manufacturing plants, 4 engineering & design centres across 18 locations globally.
  • The Group has alliances with more than 20 renowned companies globally and the associations include Arcelor Mittal, Cornaglia, Dassault Systems, JFE Steel Corporation, Magnetto, Ogihara, Sumitomo and many more.
  • Company’s portfolio includes  auto components and assemblies such as Welded Assemblies, exhaust system, fuel fillers , Axles and suspension parts for passenger cars.
  • JBM has Consistent profit growth of 22.42% over 5 years.
  • Company has setup new plant in Vithlapur, Gujarat for catering to Suzuki Motor Gujarat Private Limited (SMG), supplying components for its new models.
  • JBM also hold 11,150 shares of Maruti Suzuki India

Stock Outlook:

  • M-cap: INR 1288 cr
  • CMP: 567.4 INR (11th Jan 2018)
  • PE: 20.7
  • EPS: 27.39 INR
  • Book Value: 150.7 INR
  • Debt to Equity: 0.84
  • Share capital is 10.83 cr of FV 5.
  • Promoter Share holding : 58.86 %
  • FII/DII/FPI Share Holding :  2.56 %

Why JBM?

  • Maruti is growing rapidly in India with 50% shares of all passenger vehicles. JBM being alliance of Maruti,also expected  to grow with its parent company.
  • Indian Auto Components Industry is set to become the third largest in the world by 2025. And its exports potential could be increased by upto 4 times by 2020.
  • JBM  business is also increasing by diversification of portfolio, establishment of new plants to cater the increasing requirements.
  • For next 3-5 year , we believe JBM can outperform the market and deliver 2x-5x returns.

Be Smart. Invest Smartly.

Disclaimer : Please take advice of your financial advisor before any investment.

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