Jamna Auto skids
Jamna Auto Industries is currently the top loser on the BSE, falling 11.08% to Rs. 128.75. The stock opened weak at Rs. 137.55 against its previous close of Rs. 144.80 and slipped to an intraday low of Rs. 121.45. Market depth, however, showed buy quantity at 1,13,621 against sell quantity of 1,00,993, suggesting some buying support at lower levels after the sharp fall.
Trigger
- Weak sequential Q1 FY27 performance.
- Net sales fell 27% QoQ to Rs. 612 crore.
- EBITDA declined 36% QoQ to Rs. 88 crore.
- PBT dropped 43% QoQ to Rs. 66 crore.
- PAT fell 44% QoQ to Rs. 49 crore.
- LCV production was down 8% QoQ, while M&HCV production fell sharply by 29% QoQ.
- YoY numbers were positive but modest — sales up 7%, EBITDA up 13%, PAT up 7%.
The sell-off is mainly because the market is focusing on the sharp sequential slowdown rather than the year-on-year growth. The steep fall in M&HCV production is the bigger concern, as it points to weaker commercial vehicle momentum and operating deleverage. That is visible in EBITDA falling faster than sales on a QoQ basis.
The company’s long-term roadmap, remains positive, with targets of Rs. 5,000 crore revenue, 40% contribution from new markets, 40% ROCE and 50% dividend payout by FY2030. But for now, investors appear to be questioning the near-term pace of execution, especially after the Q1 dip.
Valuation is not excessive compared with many high-growth names, with PE at around 20.97 times standalone and 17.63 times consolidated earnings. Still, after today’s sharp fall, the market may wait for signs of recovery in CV production, exports/aftermarket traction and margin stability before rerating the stock again.