CMP: 97

Jamna Auto Industries Limited is an automobile suspension springs manufacturer. The Group supplies its products to a number of key manufacturers, including Daewoo, Honda and Ford, among others. Jamna also has a technological and equity collaboration with NHK Spring Company Limited, in which the companies will jointly manufacture coil springs and stabilizer bars.

Jamna Auto is a decent bet in small-cap auto space. Its currently trading at a P/E of less than 8 with good dividend yields of over 2% in the last 12 months. Liabilities have been reduced to minimal levels over the last 5 years with decent cash flows and cash equivalents. Revenues have grown from 279 Crores to 810 Crores in the last 5 years. Profits have grown from less than 2 Crores to 42 Crores (Has been through losses in FY09 recession period). NPM has improved significantly from less than 1% to well over 5% over the last 5 years. Buy and hold for long term gains.