Jamna Auto Inds. (JAMNAAUTO)

FairStock Score: 32/100 — RISKY

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• High ROE of 23.02% and ROCE of 20.74% indicate strong capital efficiency and a possible competitive position.
• Low debt-to-equity of 0.15 means the business is not taking excessive financial risk.
• Sales growth of 18.72% and profit growth of 51.15% demonstrate operating leverage and momentum.
• Piotroski F-Score of 7/9 suggests good fundamental health.
• Promoter holding of 49.93% aligns management interest with shareholders.

Concerns

• Valuation is rich at P/E of 29.16 and P/B of 5.02, leaving little margin of safety.
• Profit growth of 51.15% outpacing sales growth of 18.72% may signal cyclical margin peak or one-time benefit.
• Dividend yield of 1.42% is modest, so returns depend heavily on future price appreciation.
• FairStock Score of 47/100 is mixed, and the stock is well below its 52-week high of ₹152.60.

AI Analysis

Looking at Jamna Auto, I first ask: does the business earn well, and does it have a moat? The numbers are encouraging. A return on equity of 23.02% and a return on capital employed of 20.74% show a company that puts shareholder money to good use. Debt to equity is just 0.15, so the returns are not built on borrowed trouble. Sales grew 18.72%, and profit jumped 51.15% — that tells me operating leverage is real. A Piotroski score of 7 out of 9 reinforces that the financial health is sound. Promoter holding of 49.93% keeps skin in the game. But Graham taught me that price is what you pay, value is what you get. At ₹126.20, the market pays ₹5,893 Cr for the company. That is 29.16 times earnings and 5.02 times book value. Book value is only ₹25.14. This is not a bargain. The PEG ratio of 0.83 says growth is supporting the price, but I have to ask whether auto component demand can keep growing at this pace. Latest quarter revenue is ₹668 Cr, with net profit ₹58 Cr. Annualise that, and you get roughly ₹232 Cr, against a market cap of ₹5,893 Cr — the expectations are high. The dividend yield of 1.42% is thin, so the story depends on continued capital gains. The quality looks good: high returns, low debt, strong growth. But the price leaves little margin of safety. The FairStock score of 47/100 is mixed, and the share is well below its 52-week high of ₹152.60. I am not a buyer at this price. I would wait for a better price or clearer evidence that the growth is durable. In the meantime, I watch and learn.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer