what is the Future Multibagger company in "Automobile Ancillary " Sector ?

Its jay bharat maruti and not jbm auto

 

Ah ok. Apologies.

 

Sachin - numbers and ratios look rock solid. Coupled with low valuations, this merits serious investigation

 

KPIT Technologies since they are manufacturing sensors. and the future may be good because of increasing use of different sensors in vehicles.

 

Which is what my point was - why is there no premium which the market assigns to their captive sales? You are right this requires investigation. Is there something the market knows which we dont

 

Although it fits into the multibagger category, the margins for Jay Maruti are low i believe. Also, increase in sales YoY is nothing to talk about.

 

That is already know....this was my first challenge to an opinion that Jay Bharat Maruti is a 'good stock'

All you need to so is scroll back to an earlier posting

 

Sorry you seem to contradict yourself....in one breath you mention that it fits into the multibagger category and that its margins and sales growth are pretty lame... ( so what qualifies the scrip into the multibagger category?

 

The way I see it is that the numbers show what has happened in the past. The new line of business which is emerging in JBM and JBM Auto is the next trigger which is CV buses business. Dont rely on the previous no.s too much for making buying decision. That ways no one will buy any turnaround stories, because the previous no.s would be poor.

 

Is not the CV buses within JBM Auto?

 

Thats correct. JBM auto is the maker of the CV segment, however I was under the assumption that JBM (the listed entity) is a promoter/big stock owner of JBM Auto. But the it doesnt seem that way looking at JBM Auto's Promoter list. It is JBM Builders which is a private entity. JBM's plans are to cash in on the new vehicle sales that are probably going to happen with 7th Pay commission pay hike and them become the auto component sourcing hub for the rest of the world. That realization might take time though.

 

Have a look at samkrg pistons! Growth in auto industry will surely help it. Company manufactures and market engineered Pistons, Piston Pins, Piston Rings & Circlips. Its major customers are Honda, TVS, Bajaj Auto and Royal Enfield

Ps:Cant predict whether this will be next multibagger.

Disc:invested

 

@Rishi_@ Samkrg pistons is a good company but there is a better investment in Federal Mogul if you want to play pistons, Piston rings etc. FM and Shriram Pistons are the top companies in this space but SP is privately held. FM is probably the best bet in this space as it is an MNC holding company with technological edge and a great brand.

 

Just Had a quick look at screener.in about federal mugal, however for me 93 pe is quite high plus there OPM is fluctuating alot. Also if you dont mind can you elaborate why having MNC as holding is good?

 

@Rishi_@ sure PE is quite daunting right now, but its the leader in the pack with the latest technology. I know about Shriram Pistons very closely, and this is their main competitor in terms of advanced technology and good production quality metrics. MNC holding is good because that MNC is a leader in this space across the world. Generally in the field of pistons and engine related components, efficiency, reliability and latest technology gets you the edge. Dont go with the fluctuating OPM because Auto industry as a whole has been down in the dumps recently, therefore margin pressure. Samkrg has a long way to go to catchup to the level of Goetze (even if it tries).

 

Okay, was not aware about FM being leader, i was of the view that samkrg does not have much competition! I guess i need to research again whether i should be invested in samkrg! However one question is bugging me is if both the companies are from same industry then how come samkrg was able to maintain its opm whereas FM was struggling? Hope u can help me on that
By the way Shriram piston has like each and every company as its client. Gud job that u were able to find private company, nice research u had done

And as we are talking about auto sector then have a look at jamna auto! Quite interesting product the company has! Unique and its market leader!

 

@Rishi_@ Samkrg is like the cheaper version of what FM provides. Margins get affected not only by the revenues but also by the costs. It might be possible that FM faced some operational issues which might not be related to the industry but related to the company only.

FM supplies globally to big clients as well like VW, BMW, Mercedes etc. and Samkrg doesnt provide that quality as of now. Whether it can will be something to see and then it can become an investing idea. Right now its playing the "sasta and tikau" market.

 

I did buy @213/- and waiting the upmovement. I have noticed Tilak Sir's (Tilak Sharma, as smartian in M3/MMB message board) strong recommendations for this scrip.
Krishnan

 

SML ISUZU @870 and PORWAL AUTO@21 look better

 

SML ISUZU
The commissioning of new facility worth Rs 220 crs could improve market share and bottom line in future .