1 JAMNAAUTO share price target reports by brokerages below. See what is analyst's view on JAMNAAUTO share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
Given the lower-than-expected pre buying impact for BS-VI driven by GST related uncertainty and slowdown in economy, we cut our EPS estimates by 39/30% for FY20/21E. We expect the growth momentum in CV to revive materially only post clarity of GST and uptick in economic activity. We change our rating from Buy to Accumulate, with a lower TP of Rs 40 (12x FY21E EPS).
The stock currently trades at 13.3x FY20e EPS of Rs 4.01 and 11.5x FY20e EPS of Rs 4.65. Most of the growth in earnings over the next two years (16.1% on average) would emerge from not so ebullient volumes but stable margins. Moderation in asset turnover ratios and stress in working capital cycle would barely escape notice. Yet widening net of highly efficient parabolic springs would start to become palpable, providing much needed stability to earnings. Given moderation in stock valuation, we advise buying the stock with revised target of Rs 74 (previous target: Rs 99) based on 16x FY21e earnings.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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