JTEKT India Limited

Consumer Cyclical — Auto Parts · NSE

₹116.45+₹2.11 (+1.85%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of JTEKT India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

JTEKT India Limited engages in the manufacture and sale of steering systems and auto components for the passenger car and utility vehicle manufacturers in the automobile sector in India.

IndustryAuto Parts

SectorConsumer Cyclical

Employees1,646

Annual revenue₹2,645 Cr

How does it make money?

Turns over ₹2,645 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 1,646 employees supports ₹1.61 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.61 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 8.6% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE23.0%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 13.0% and earnings to grow about 85.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+13.0%

Est. earnings growth+85.4%

Analysts2

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +31% while net margin moved -32% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+31%

Margin effect-32%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 8.6% is below 10% — capital is not working hard
✗ ROCE has fallen by 6.7 points — returns are eroding
✗ EBITDA margin of 8.5% is thin — little cushion if costs rise
✗ Net margin of 2.6% is slim
• Revenue has compounded at 9.3% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

40/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

49/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

44.4x

3Y Median

43.9x

40 monthly readings · mean 44.5x · range 27.9x–63.9x

Sector Median

45.7x

median of 4 sector peers

🟡Currently trading close to its 3y median of 43.9x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 45.7x.

vs. its own history

Fair

43.9x median over 40 months · +1%

vs. sector peers

Fair

45.7x median of 4 peers · -3%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

15.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.29x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 11.9% to 6.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 15.2% to 8.6% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 450% over 3 years, from ₹62 Cr to ₹340 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 11.9% to 6.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 6%✓ 8.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹345 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 7% a year✓ 9.3% CAGR
Latest reported year was 26.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 8.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 4 neutral · 4 weak

Market Cap

₹3,230 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

44.4x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.72x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.62

Profitable

Profitable on a per-share basis

ROE

6.5%

Weak

Weak capital efficiency

ROCE

8.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.29x

Low

Conservative leverage

Revenue Growth (YoY)

26.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-48.8%

Falling

Profits are shrinking

Dividend Yield

0.64%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹345 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

26.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

1.4%

Weak

Thin margins leave little room for error

Net Margin

2.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.23

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.82

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

115.4 / 122.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,025 Cr	₹2,228 Cr	₹2,381 Cr	₹2,645 Cr	+9.3%
EBITDA	₹194 Cr	₹234 Cr	₹193 Cr	₹224 Cr	+5.0%
EBITDA Margin	9.6%	10.5%	8.1%	8.5%	—
PAT (Net Profit)	₹87 Cr	₹107 Cr	₹75 Cr	₹77 Cr	-4.1%
EPS	₹3.36	₹4.11	₹2.9	₹2.84	-5.4%
ROE	11.9%	13.0%	8.6%	6.5%	—
ROCE	15.2%	17.0%	11.6%	8.6%	—
Total Debt	₹62 Cr	₹115 Cr	₹156 Cr	₹340 Cr	+76.5%
Free Cash Flow	-₹2 Cr	-₹23 Cr	-₹85 Cr	-₹345 Cr	—

🟢 Revenue has grown at 9.3% a year over 3 years.

🟢 EBITDA has grown at 5.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 9.6% to 8.5% over 3 years (-1.1 pts).

🔴 PAT (Net Profit) has shrunk at 4.1% a year over 3 years.

🔴 EPS has shrunk at 5.4% a year over 3 years.

🔴 ROE has fallen from 11.9% to 6.5% over 3 years (-5.4 pts).

🔴 ROCE has fallen from 15.2% to 8.6% over 3 years (-6.7 pts).

🔴 Total Debt has grown at 76.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,971 Cr

Total Liabilities

₹785 Cr

Cash & Equivalents

₹37 Cr

Operating Cash Flow

₹99 Cr

Capex

-₹444 Cr

Shareholding (proxy)

Institutional Holding

10.6%

Insider Holding

76.5%

Corporate Actions

Dividend Rate

₹0.75

Ex-Dividend Date

07 Aug 2026

Analyst Consensus

Recommendations

1 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹177.5

+52.4% vs CMP

Target Range

₹161 – ₹194

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 mixed5 general

JTEKT India Ltd. 52 Week Low Streak: Repeated Low Pattern

Univest, 13 Oct

JTEKTINDIA Forecast — Price Target — Prediction for 2027

TradingView, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

JTEKT India's (NSE:JTEKTINDIA) Profits Appear To Have Quality Issues

Simply Wall Street, 22 May

NSE Volume Gainers on July 1, 2026: RITES, Bharat Seats, JTEKT India Among Stocks in Focus

HDFC Sky, 01 Jul

Stocks to buy: Nagaraj Shetti recommends Avantel, Jtekt India shares to buy in the short-term

Livemint, 09 Jul

Why did Systematix initiate coverage on JTEKT India? 33% upside seen

Business Standard, 24 Dec

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation · Risk

WeakBusiness Quality · Growth · Profitability

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑