JTEKT India (JTEKTINDIA)
Fast GrowerFairStock Score: 19/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹131.71 |
| Market Cap | ₹3,653.59 Cr |
| P/E Ratio | 46.38 |
| ROCE | 11.22% |
| ROE | 7.45% |
| Dividend Yield | 0.53% |
| Profit Growth | 2.1% |
| Debt/Equity | 0.29 |
| Sales Growth | 20.2% |
| Promoter Holding | 74.98% |
| 52-Week Range | ₹117.01 — ₹187.95 |
| Sector | Auto Components |
| Book Value | ₹42.75 |
Strengths
- Sales growth of 14.90% and profit growth of 41.45% show momentum.
- Low debt/equity of 0.23 provides financial stability.
- High promoter holding of 74.98% aligns management with minority shareholders.
- Piotroski F-Score of 7/9 indicates solid fundamental health.
Concerns
- P/E of 53.99 and PEG of 1.92 leave little margin of safety.
- ROE of 8.81% is weak relative to P/B of 4.31.
- Latest quarter net margin is only around 2.9%, indicating thin profitability.
- Dividend yield of 0.47% offers minimal income while waiting for growth.
AI Analysis
When I look at JTEKT India, I first ask: what does the market give me for my rupee? At ₹130.70, I am paying over 54 times trailing earnings, while the book value is just ₹30.34. That means for every ₹100 of book value, the market is asking ₹431. A business must earn well on that book to justify such a premium, but JTEKT's ROE is only 8.81%. That is hardly a spectacular compounding machine. ROCE, at 11.22%, is decent but not exceptional. I do see low debt—D/E of just 0.23—and a Piotroski score of 7/9, which suggests the financial health is acceptable. I also respect the 74.98% promoter holding; owner alignment matters. Growth is visible: sales up 14.90%, profits up 41.45%, and latest quarterly sales are ₹680 Cr. But the net profit of ₹20 Cr on that revenue is a razor-thin 2.9% margin. A 41% profit rise from a small base can be misleading. The PEG ratio of 1.92 tells me the price already reflects much of the growth, and with a dividend yield of only 0.47%, I am not paid to wait. FairStock's own 23/100 risk score reinforces my caution. The 52-week range of ₹117.01 to ₹188.50 shows the stock has fallen sharply; sometimes a falling knife, sometimes a bargain. For me, margin of safety matters most. I would need either a much lower price or clear evidence that ROE can move well into the teens before I treat this as a business I can own with conviction. At today's price, I prefer to watch.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer