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Last Updated on: 20 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

JTEKT India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 19, 2024, 6:56 pm

Market Cap 4,047 Cr.
Current Price 160
High / Low226/132
Stock P/E51.6
Book Value 30.0
Dividend Yield0.38 %
ROCE15.9 %
ROE12.4 %
Face Value 1.00
PEG Ratio2.29

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for JTEKT India Ltd

Competitors of JTEKT India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Him Teknoforge Ltd 195 Cr. 224274/10422.9 2370.18 %8.63 %4.10 % 2.00
The Hi-Tech Gears Ltd 1,357 Cr. 7401,280/39824.0 2610.67 %12.5 %12.2 % 10.0
Shanthi Gears Ltd 3,861 Cr. 501704/45142.7 49.11.00 %33.5 %25.0 % 1.00
JTEKT India Ltd 4,047 Cr. 160226/13251.6 30.00.38 %15.9 %12.4 % 1.00
Bharat Gears Ltd 154 Cr. 100134/95.834.1 79.70.00 %1.65 %9.13 % 10.0
Industry Average1,922.80 Cr345.0035.06131.360.45%14.44%12.57%4.80

All Competitor Stocks of JTEKT India Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales355432470321385413470472571471530478584
Expenses321388414303355376428432513433480443524
Operating Profit34445618303742405838503460
OPM %9%10%12%6%8%9%9%8%10%8%10%7%10%
Other Income111132-3-1222112
Interest1111111111111
Depreciation22212019181717171819191920
Profit before tax122336-1142121214120322542
Tax %27%28%26%6%26%26%27%26%27%23%18%25%27%
Net Profit91727-1111615163015261930
EPS in Rs0.330.651.04-0.050.390.590.580.581.140.591.030.701.11

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,4211,4601,4921,5531,5181,2111,5191,7541,5111,3331,5892,0442,063
Expenses1,2461,2951,3131,3371,3241,0631,3061,5321,3741,2301,4611,8571,879
Operating Profit175165179216194148213222137103127187183
OPM %12%11%12%14%13%12%14%13%9%8%8%9%9%
Other Income393951612912953517
Interest4641393132252116105455
Depreciation465868104997996969383717377
Profit before tax8674111867956104122432156114118
Tax %30%35%22%31%32%28%34%36%18%33%27%24%
Net Profit60488658544068783514418790
EPS in Rs2.451.923.411.911.861.863.212.981.240.481.513.333.43
Dividend Payout %27%34%23%34%27%27%16%27%28%31%26%15%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-20.00%79.17%-32.56%-6.90%-25.93%70.00%14.71%-55.13%-60.00%192.86%112.20%
Change in YoY Net Profit Growth (%)0.00%99.17%-111.72%25.66%-19.03%95.93%-55.29%-69.83%-4.87%252.86%-80.66%

JTEKT India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:3%
5 Years:6%
3 Years:11%
TTM:7%
Compounded Profit Growth
10 Years:8%
5 Years:6%
3 Years:40%
TTM:4%
Stock Price CAGR
10 Years:12%
5 Years:13%
3 Years:17%
1 Year:17%
Return on Equity
10 Years:10%
5 Years:8%
3 Years:7%
Last Year:12%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital20202020202020242424242424
Reserves219242289304327363525568571574607678710
Borrowings3584103412923072492321887849716269
Other Liabilities357376389398397248274302217286297315374
Total Liabilities9531,0481,0391,0131,0528801,0511,0838909331,0001,0801,177
Fixed Assets546609602584600477549533487425399481499
CWIP4632756340232510310972542
Investments30301111030000000
Other Assets331377361365411278476541401498505574636
Total Assets9531,0481,0391,0131,0528801,0511,0838909331,0001,0801,177

Reserves and Borrowings Chart

Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity +181991631991311621781841259110895
Cash from Investing Activity +-139-96-42-81-79-64-11816-34-40-126-84
Cash from Financing Activity +-42-13-122-102-35-100-55-85-153-4414-28
Net Cash Flow-0-10-01518-25115-617-4-17

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-183.00-245.00-162.00-76.00-113.00-101.00-19.0034.0059.0054.0056.00125.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days455751445247625647705650
Inventory Days222933353639393641524849
Days Payable746969687177686652816556
Cash Conversion Cycle-7171512178332637413843
Working Capital Days-71-318-1222030423440
ROCE %21%17%16%16%14%12%17%17%7%4%9%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters75.00%75.00%73.98%73.97%73.97%73.97%73.97%73.97%73.97%74.98%74.98%74.98%
FIIs4.58%4.59%4.58%3.99%3.95%3.84%0.32%0.41%0.52%0.48%0.57%0.43%
DIIs3.55%3.24%4.52%4.48%4.45%4.55%7.68%8.50%9.24%8.92%8.96%8.85%
Public16.87%17.17%16.92%17.55%17.62%17.63%18.04%17.12%16.27%15.62%15.47%15.74%
No. of Shareholders48,11448,24346,68644,19143,76743,80141,94441,98341,80846,84046,12650,092

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Small Cap Fund14,429,1320.53199.6358,1882024-11-1824697.44%
Baroda BNP Paribas India Consumption Fund1,063,6701.4114.7258,1882024-11-181727.99%
Baroda BNP Paribas Midcap Fund914,0000.8612.6558,1882024-11-181470.77%
Baroda BNP Paribas Value Fund879,0000.8212.1658,1882024-11-181410.62%
Bank of India Tax Advantage Fund865,0001.3911.9758,1882024-11-181386.56%
Bank of India Tax Advantage Fund - Eco Plan865,0001.3911.9758,1882024-11-181386.56%
Bank of India Small Cap Fund540,0001.037.4758,1882024-11-18828.03%
Baroda BNP Paribas Aggressive Hybrid Fund477,0000.796.658,1882024-11-18719.76%
Baroda BNP Paribas Business Cycle Fund315,1621.194.3658,1882024-11-18441.63%
Motilal Oswal Nifty Microcap 250 Index Fund58,1880.170.8158,1882024-11-180%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)3.331.510.481.242.98
Diluted EPS (Rs.)3.331.510.481.242.98
Cash EPS (Rs.)6.564.583.955.237.13
Book Value[Excl.RevalReserv]/Share (Rs.)30.0127.0525.5425.4325.25
Book Value[Incl.RevalReserv]/Share (Rs.)30.0127.0525.5425.4325.25
Revenue From Operations / Share (Rs.)83.6064.9954.5261.7971.74
PBDIT / Share (Rs.)7.995.634.425.969.54
PBIT / Share (Rs.)5.002.731.032.165.62
PBT / Share (Rs.)4.672.300.831.764.98
Net Profit / Share (Rs.)3.561.680.551.443.20
NP After MI And SOA / Share (Rs.)3.331.510.471.242.98
PBDIT Margin (%)9.558.658.119.6413.30
PBIT Margin (%)5.974.191.893.507.83
PBT Margin (%)5.583.531.532.846.94
Net Profit Margin (%)4.262.581.022.324.46
NP After MI And SOA Margin (%)3.982.320.872.004.14
Return on Networth / Equity (%)11.575.841.955.0812.26
Return on Capital Employeed (%)15.689.373.848.0920.05
Return On Assets (%)7.573.691.253.396.71
Long Term Debt / Equity (X)0.040.050.020.020.08
Total Debt / Equity (X)0.080.100.050.080.22
Asset Turnover Ratio (%)2.061.711.521.601.70
Current Ratio (X)1.841.681.731.641.33
Quick Ratio (X)1.211.181.261.151.05
Inventory Turnover Ratio (X)9.358.618.049.5411.48
Dividend Payout Ratio (NP) (%)12.019.9372.9764.6325.58
Dividend Payout Ratio (CP) (%)6.323.409.0315.8911.03
Earning Retention Ratio (%)87.9990.0727.0335.3774.42
Cash Earning Retention Ratio (%)93.6896.6090.9784.1188.97
Interest Coverage Ratio (X)41.2436.8922.9014.6615.00
Interest Coverage Ratio (Post Tax) (X)20.0813.843.904.546.03
Enterprise Value (Cr.)2557.541830.072044.73995.252720.15
EV / Net Operating Revenue (X)1.251.151.530.651.55
EV / EBITDA (X)13.0913.3018.906.8311.66
MarketCap / Net Operating Revenue (X)1.241.141.540.641.53
Retention Ratios (%)87.9890.0627.0235.3674.41
Price / BV (X)3.592.873.441.654.53
Price / Net Operating Revenue (X)1.241.141.540.641.53
EarningsYield0.030.020.010.030.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of JTEKT India Ltd as of November 20, 2024 is: 192.68

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 20, 2024, JTEKT India Ltd is Undervalued by 20.43% compared to the current share price 160.00

Intrinsic Value of JTEKT India Ltd as of November 20, 2024 is: 236.16

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 20, 2024, JTEKT India Ltd is Undervalued by 47.60% compared to the current share price 160.00

Last 5 Year EPS CAGR: 22.57%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 15.58, which is a positive sign.
  2. The company has higher reserves (459.77 cr) compared to borrowings (208.15 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (1.15 cr) and profit (82.31 cr) over the years.
  1. The stock has a low average ROCE of 13.83%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 23.33, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in JTEKT India Ltd:
    1. Net Profit Margin: 4.26%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 15.68% (Industry Average ROCE: 14.44%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 11.57% (Industry Average ROE: 12.57%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 20.08
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.21
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 51.6 (Industry average Stock P/E: 35.06)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.08
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

JTEKT India Ltd. is a Public Limited Listed company incorporated on 14/06/1984 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L29113DL1984PLC018415 and registration number is 018415. Currently Company is involved in the business activities of Manufacture of diverse parts and accessories for motor vehecles sucs as brakes, gearboxes, axles, road wheels, suspension shock absorbers, radiators, silencers, exhaust pipes, catalysers, clutches, steering wheels, steering columns and steering boxes etc.. Company’s Total Operating Revenue is Rs. 1610.50 Cr. and Equity Capital is Rs. 24.45 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - Gears & DriveUGF-6, Indra Prakash, New Delhi Delhi 110001investorgrievance@jtekt.co.in
http://www.jtekt.co.in
Management
NamePosition Held
Mr. Hitoshi MogiChairman & Managing Director
Mr. Minoru SugisawaWhole Time Director
Mr. Takumi MatsumotoDirector
Mr. Rajiv ChananaDirector & CFO
Mr. Inder Mohan SinghIndependent Director
Lt. Gen. (Retd.) Praveen BakshiIndependent Director
Mrs. Hiroko NoseIndependent Director
Mr. Masahiko MorimotoIndependent Director
Mr. Hiroshi DaikokuIndependent Director
Mr. Taku SuminoNominee Director

FAQ

What is the latest intrinsic value of JTEKT India Ltd?

The latest intrinsic value of JTEKT India Ltd as on 20 November 2024 is ₹192.68, which is 20.43% higher than the current market price of ₹160.00.

What is the Market Cap of JTEKT India Ltd?

The Market Cap of JTEKT India Ltd is 4,047 Cr..

What is the current Stock Price of JTEKT India Ltd as on 20 November 2024?

The current stock price of JTEKT India Ltd as on 20 November 2024 is ₹160.

What is the High / Low of JTEKT India Ltd stocks in FY 2024?

In FY 2024, the High / Low of JTEKT India Ltd stocks is 226/132.

What is the Stock P/E of JTEKT India Ltd?

The Stock P/E of JTEKT India Ltd is 51.6.

What is the Book Value of JTEKT India Ltd?

The Book Value of JTEKT India Ltd is 30.0.

What is the Dividend Yield of JTEKT India Ltd?

The Dividend Yield of JTEKT India Ltd is 0.38 %.

What is the ROCE of JTEKT India Ltd?

The ROCE of JTEKT India Ltd is 15.9 %.

What is the ROE of JTEKT India Ltd?

The ROE of JTEKT India Ltd is 12.4 %.

What is the Face Value of JTEKT India Ltd?

The Face Value of JTEKT India Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in JTEKT India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE