Saturday, September 19, 2015

Jullundur Motor Agency (Delhi)

JMA is one of the biggest auto parts dealer founded in year 1949.

The average ROCE of the company over the last 10 years is around 27.63% and is higher at 28.97% over the last three years. The company has consistently paid dividends over the last 10 years. The company has net current assets to the tune of around 90 Crore. The company had an operating cash flow of around 6 Crore last year.

Promoters hold around 38.2% of the shareholding which has increased slightly compared to last year.

Current market price of the company is INR 184 which is very near to its book value of INR 183. The valuations of 110 Crore is just tad above its net current assets. The P/E comes to around 7.78. Its competitor "India Motor Parts and Accessories" is trading at around 18.63 times earnings with 2.5 times book. The only thing in favour of IMPAL is that its operating profit margin at 8.9% is higher compared to 5.8% of JMA.

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Unknown said...

This co listed? pls give bse code or ticker

Chinmay said...

The company is only listed on NSE. ISIN : INE412C01015 as mentioned

KKR said...

Very Illiquid Counter and risky when we need to liquidate. Also, Trading business margin will not be stable. Auto parts are also sold with service partners which is taking away the growth.
JMA also part of mining about 40% is biigest risk as of now.

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