JTEKT India secures order worth Rs 183 crore; Stock rallies over 3% on Tuesday

During Tuesday’s deals, the shares of JTEKT India Limited zoomed by 3.43%. Furthermore, the scrip witnessed a massive spurt in volume by more than 10.34 times. The company’s current market capitalisation is Rs 3,353.01 crore.

Technical outlook

As of December 12, 2023, the stock’s 200-day moving average (DMA) stood at Rs 132.58, while the 50-DMA was observed at Rs 137.19. The current share price on BSE is Rs 141. In a recent development, the 50-DMA has crossed above the 200-DMA, signalling a robust and sustained upward trend over the long term.

About the order: 

The company has recently secured a significant international order from JTEKT Brasil Ltd (JTEKT Brasil) for the supply of Loose Child Parts (Goods) designated for Final Assembly. The duration of the supply is specified to commence from the issuance date of the purchase order (PO) until the scheduled delivery time.

The contract’s total value stands at approximately Rs 182.7 crore. This notable development underscores JTEKT India’s global engagement and its strategic role in the supply chain.

Company profile 

JTEKT India Ltd specialises in manufacturing steering systems and other auto components for passenger car and utility vehicle manufacturers in the automobile sector.

Zooming out to the company’s product-wise breakdown, it reveals a diversified portfolio with significant contributions from various segments. The largest share is attributed to CEPS (Column Electric Power Steering) at 45.8%, followed by RPSM (Rack Pinion Steering Mechanism) at 23.5%, and HPS (Hydraulic Power Steering) at 9.3%. Other notable contributions include Column at 8.2% and others include 13.2%.

Additionally, in terms of market distribution strategy is prominently tilted towards Original Equipment Manufacturers (OEMs), representing a significant majority at 90%. In contrast, the Aftermarket segment constitutes a smaller but still noteworthy share, accounting for 10%.

The company appears to have a primary focus on catering to OEMs, emphasizing its role as a key supplier in the original equipment sector. The Aftermarket segment, although smaller, suggests a presence in providing components and solutions beyond the initial sale, contributing to the company’s overall market presence and customer base diversification.

Furthermore, the stock has witnessed significant buying activity as it has given returns of more than 66% in the last 3 years.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.