This company’s fortunes are indelibly linked with that of Maruti Suzuki. But for the tax write back of Rs.29 lakh in current Q3 v/s the big tax outgo of Rs.4 crore in previous Q3, the company would have ended the quarter with a lower profit. Thus despite 1% (YoY) decline in net sales, it ended the Q3 with a net profit at Rs.11 crore compared to Rs.7.6 crore in Q3FY14. EBITDA came in at Rs.25 crore, down 7% while margins fell from 9.4% to 8.8%.

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, Q4 could be much better. And irrespective of the last quarter, its 9MFY15 net profit of Rs.30 crore is already almost double of FY14 net profit of Rs.16 crore. It is sure to end the current fiscal on a bumper note. The Rs.5 FV stock, has an annualized EPS of Rs.18.