Sunday, May 22, 2016

Jamna Auto - Buy on declines

Company Background :

Jamna Auto Industries Limited is an India-based provider of automotive suspension solutions for commercial vehicles. The Company is engaged in the manufacturing and supply of tapered leaf, parabolic springs and suspension systems for vehicles. Its suspension products include rear air suspension-cow horn style, lift axle-steerable/non steerable and bogie suspension-tandem axle. 

Company offers single stage, two stage progressive and auxiliary multileaf springs and parabolic springs. Its multileaf springs are used in commercial and special application vehicles. It operates approximately five manufacturing plants, which are located in Yamuna Nagar, Haryana; Gwalior, Madhya Pradesh; Chennai, Tamil Nadu; Jamshedpur, Jharkhand, and Hosur, Tamil Nadu. It offers its products to global and domestic commercial vehicle original equipment manufacturers. It operates a research and development center to design multi, parabolic leaf springs, lift axles and air suspension for automobile applications.

Stock Performance :

During the last  1 month the scrip has peaked at Rs.148 from a low of Rs.138 giving decent returns.  Three months movement is also bullish from a low of Rs.120 it has gained as much as Rs.29.  During the last 6 months it has gained.  It started upward journey from Rs.116 on Dec 3, 2015 and has touched 150.  This gives an opportunity to buy on declines ..

Our Recommendation :

Both long term and short term indicators are bullish.  Buy on declines around Rs.135 levels and hold for a target of Rs.175 in coming 6-9 months time frame.


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