JTEKT India Limited (JTEKTINDIA) AI Stock Analysis

• Market Cap: ₹37.95B
• Dividend Yield: 0.49%
• Average Volume (3M): 11.25K
• Price to Earnings (P/E): 51.3
• Beta (1Y): 1.23
• Revenue Growth: 4.44%
• EPS Growth: -25.67%
• Country: IN
• Employees: 1,592
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 0.70
• Shares Outstanding: 277,314,200
• 10 Day Avg. Volume: 7,909
• 30 Day Avg. Volume: 11,249
• PEG Ratio: -1.39
• Price to Book (P/B): 3.50
• Price to Sales (P/S): 1.29
• P/FCF Ratio: -38.27
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹147.00 ▼(-7.49% Downside)

The score is supported by a strong, conservatively financed balance sheet and steady revenue growth, but is held back by margin pressure and particularly weak free cash flow trends. Technicals remain generally constructive due to the uptrend, yet valuation is a meaningful drag given the very high P/E and low dividend yield.

Positive Factors

Balance Sheet Strength

A very low debt-to-equity ratio (0.18) and a 60% equity base provide durable financial flexibility. This conservative capital structure supports sustained capex, cushions industry cyclicality, and reduces refinancing risk, enabling long-term supplier and OEM commitments.

Consistent Revenue Growth

Steady top-line growth (~6.8%) signals ongoing demand traction with OEMs and market share stability. Consistent revenue expansion helps absorb fixed manufacturing costs, supports scale economies, and underpins multi-quarter planning for production and capacity investment.

Gross Margin Profile

A ~27.5% gross margin reflects efficient manufacturing and cost control in component production. Structural margin strength provides a buffer against commodity swings, allowing reinvestment in tooling/automation and preserving competitiveness on long-term OEM contracts.

Negative Factors

Net Margin Pressure

Declining net and operating margins compress retained earnings and reduce capacity to self-fund growth. Persistent margin erosion limits investment flexibility, heightens sensitivity to input-cost inflation, and can weaken bargaining power with OEM customers over the medium term.

Free Cash Flow Weakness

A steep negative FCF growth rate driven by heavy capex undermines liquidity despite operating cash generation. Sustained capex burn can force external financing, delay returns to shareholders, and constrain strategic investments if not normalized over several quarters.

OEM Cyclicality Exposure

Revenue dependence on OEM production and model launch cycles creates structural cyclicality. Sales and plant utilization can swing with auto demand, increasing earnings volatility and tying medium-term growth prospects to vehicle industry cycles and platform timing.

JTEKT India Limited Business Overview & Revenue Model

Company Description

JTEKT India Limited manufactures and sells steering systems and other auto components for the passenger car and utility vehicle manufacturers in the automobile sector in India. The company offers steering gears, columns and RPS assemblies, axle assemblies, and other auto ancillaries. It also exports its precision products to the United States, Europe, and Japan. The company was formerly known as Sona Koyo Steering Systems Limited and changed its name to JTEKT India Limited in April 2018. The company was incorporated in 1984 and is headquartered in Gurugram, India. JTEKT India Limited is a subsidiary of JTEKT Corporation.

How the Company Makes Money

JTEKT India Limited generates revenue primarily through the production and sale of automotive components, including steering systems and bearings, to original equipment manufacturers (OEMs) in the automotive industry. The company also supplies precision machinery and components for industrial applications, contributing to its revenue streams. Key revenue sources include long-term contracts with major automotive companies, which provide a stable income base. Additionally, JTEKT India benefits from strategic partnerships with global automotive firms that enhance its market presence and expand its customer base. The company's emphasis on research and development allows it to innovate and maintain competitiveness, further driving sales and profitability.

JTEKT India Limited Financial Statement Overview

Summary

Strong balance sheet with low leverage (debt-to-equity 0.18) and a solid equity base (equity ratio 60.14%), plus continued revenue growth (6.84%). Offsetting this, profitability is under pressure with a lower net margin (3.14%) and weakening EBIT/EBITDA margins, and cash flow quality is a concern due to sharply negative free cash flow growth (-250.61%) driven by high capex.

Income Statement

JTEKT India Limited shows a consistent upward trend in revenue, with a revenue growth rate of 6.84% in the most recent year, indicating strong market demand. The gross profit margin stands at 27.47%, reflecting efficient cost management. However, the net profit margin decreased to 3.14%, suggesting rising expenses or cost pressures affecting profitability. The EBIT and EBITDA margins also show some decline, which could indicate operational challenges.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.18, indicating conservative leverage and low financial risk. The equity ratio of 60.14% demonstrates a strong capital base and financial stability. The return on equity (ROE) is 8.55%, showcasing effective use of shareholder equity, although there is room for improvement.

Cash Flow

Cash flow analysis reveals a concerning free cash flow growth rate of -250.61%, primarily due to high capital expenditures. The operating cash flow to net income ratio of 2.58 suggests good cash generation relative to net income, yet the negative free cash flow to net income ratio points to potential cash flow management issues needing attention.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	24.12B	23.99B	22.45B	20.44B	15.89B	13.33B
Gross Profit	6.61B	6.59B	6.26B	5.98B	4.06B	3.53B
EBITDA	1.89B	1.85B	2.33B	1.91B	1.31B	1.08B
Net Income	712.03M	752.63M	1.07B	871.17M	369.05M	117.26M
Balance Sheet
Total Assets	0.00	14.63B	12.75B	10.74B	10.00B	9.33B
Cash, Cash Equivalents and Short-Term Investments	163.08M	163.08M	753.64M	572.83M	789.12M	728.84M
Total Debt	0.00	1.56B	1.15B	617.64M	709.92M	485.16M
Total Liabilities	-8.80B	5.83B	4.53B	3.41B	3.39B	3.09B
Stockholders Equity	8.80B	8.80B	8.22B	7.03B	6.32B	5.99B
Cash Flow
Free Cash Flow	0.00	-805.75M	-229.80M	-21.36M	-140.67M	541.61M
Operating Cash Flow	0.00	1.94B	1.72B	952.00M	1.08B	912.58M
Investing Cash Flow	0.00	-2.72B	-1.72B	-844.43M	-1.26B	-401.99M
Financing Cash Flow	0.00	180.24M	279.91M	-279.73M	143.89M	-444.61M

JTEKT India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 158.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:JTEKTINDIA, the sentiment is Negative. The current price of 158.9 is above the 20-day moving average (MA) of 142.99, above the 50-day MA of 144.31, and above the 200-day MA of 144.35, indicating a bearish trend. The MACD of -3.75 indicates Positive momentum. The RSI at 44.21 is Neutral, neither overbought nor oversold. The STOCH value of 42.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:JTEKTINDIA.

JTEKT India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRBBEARING	73 Outperform	₹24.69B	26.84	―	2.39%	9.63%	-64.21%
AUTOAXLES	68 Neutral	₹28.22B	17.96	―	1.63%	-2.78%	2.55%
ROTO	66 Neutral	₹10.56B	36.84	―	0.36%	2.00%	-20.08%
JTEKTINDIA	65 Neutral	₹37.95B	51.26	―	0.49%	4.44%	-25.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
STERTOOLS	62 Neutral	₹9.18B	18.87	―	0.87%	-19.33%	-26.30%
WHEELS	58 Neutral	₹18.59B	13.75	―	1.34%	2.22%	29.00%

JTEKT India Limited Corporate Events

JTEKT India Wins CGST Appeal; Major GST Demand and Penalty Set Aside

JTEKT India Limited has announced that it has received an order from the Commissioner (Appeals), CGST, Gurgaon, allowing the company’s appeal against a substantial GST demand and associated penalty imposed under Section 74 of the CGST Act. The earlier demand of Rs 14.37 crore and penalty of Rs 28.74 crore have been set aside, and the company has clarified that there is no financial impact on its operations as a result of this decision, removing a significant potential liability overhang for the firm and its stakeholders.

JTEKT India Limited Resolves GST Demand with No Financial Impact

JTEKT India Limited, a company listed on the BSE and NSE, has announced that it received an order from the Office of the Joint Commissioner (ST), Intelligence-II in Chennai. The order pertains to a GST demand of Rs. 24,70,944, which has been dropped following the company’s reply to the demand notice. This resolution means there will be no financial impact on JTEKT India Limited, providing relief to the company and its stakeholders.