Monday, September 13, 2010


Jay Ushin is  jointly  promoted by  JPM Group
and Japanese company  USHIN Ltd in 1986.
Currently the foreign promoter holding 26% in
its equity.It is one of the  major  suppliers of
auto parts like Lock Sets, Latches,
Switches & Body parts to
major OEM’s in India.Company’s customer list
includes Mahindra and Mahindra,
Tata Motors, Maruti  ,GM,Honda ..etc.  Its  plants
are located at Gurgaon, Manesar and Chennai . Indian
automobile industry is cyclical in nature and closely
related with the trends in interest rate
and spending habits . Generally  rural spending is mainly
depends on good monsoon which is favorable in this year.
This is expected to keep  the current uptrend in auto
demand for some more time. Companies like Jay Ushin
are also a beneficiary of increased demand ,since they
are supplying products to well known OEM’s. For the last
financial year Company posted a turnover of Rs.357 Cr ,
net profit of Rs.6.6 Cr  and an EPS of Rs.17/ .For the three
months ended June qtr company’s turnover was Rs.101 Cr
v/s Rs.79 Cr , net profit was Rs.2.2 Cr v/s 1.29 Cr and EPS
was Rs.5.8 v/s Rs.3.3.Company also declared a dividend
of 25%. It is expected to post better results in few more
quarters. Don’t forget that the scrip and the industry as a
whole moved a lot in recent past and any significant upward
change in interest rate may de-rail the growth of this sector.
Considering other companies from the same sector ,it seems
to be relatively cheaply valued .Only high risk takers can
consider in limited quantity. CMP is Rs.159/-

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