Jay Bharat Maruti

Jay Bharat Maruti posted a good set of Q4FY16 numbers. It reported a 3% (YoY) rise in net sales at Rs.325 crore. Raw material prices remained stable and overall costs were down 2%. EBITDA for the quarter was up 43% and margins rose from 7.3% to 13.23%. Tax outgo rose 50% and net profit was at rs.13 crore, up 30%.

The company ended FY16 with a net profit of Rs.40 crore, same as in FY15 on a 2% rise in net sales at Rs.1240 crore.

This auto part and equipment making company is a JV between the JBM Group and Maruti Suzuki, which holds 29.25% stake. JBM Industries holds 2.85%. Total promoter holding is at 58.56%. Around 90% of its business comes from Maruti while the rest is sold to Eicher Motors and M&M. A small cap and low volume company, returns are capped and fortunes are interminably linked with that of Maruti. Hopefully, with Maruti expected to do much better in coming months, FY17 could be much better. The Rs.5 FV stock, ended FY16 with an EPS of Rs.18.66 v/s 18.47.