JTEKT India Limited (JTEKTINDIA) AI Stock Analysis

• Market Cap: ₹36.19B
• Dividend Yield: 0.49%
• Average Volume (3M): 11.25K
• Price to Earnings (P/E): 48.2
• Beta (1Y): 1.18
• Revenue Growth: 4.44%
• EPS Growth: -25.67%
• Country: IN
• Employees: 1,592
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 0.90
• Shares Outstanding: 277,316,220
• 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): 2.7
• Revenue Forecast (FY): ₹25.59B

• Rating: 61 Neutral
• Price Target: ₹146.00 ▼(-8.12% Downside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is primarily supported by a strong, low-leverage balance sheet and steady revenue growth, but is held back by margin compression and weak free-cash-flow trends. Technicals are neutral-to-weak (below major DMAs), and valuation is a key drag due to a high P/E and low dividend yield.

Positive Factors

Balance sheet strength

A very low debt-to-equity ratio and a high equity ratio provide durable financial flexibility, enabling the company to fund working capital and capex through cycles, maintain supplier and OEM credibility, and withstand automotive demand downturns without forcing distress sales or rapid deleveraging.

Steady revenue growth & gross margin

Consistent mid-single-digit top-line growth combined with a healthy gross margin indicates persistent product demand and efficient manufacturing. Over the medium term this supports investment in process improvements and product fits for OEM platforms, and provides a margin buffer against input-cost volatility.

OEM-focused business model

A core OEM supply model creates recurring, contract-driven revenue tied to vehicle programs and platform cycles. That structural customer base supports predictable volumes, long-term supplier relationships, and the ability to secure multi-year supply agreements that stabilize revenues and capital planning.

Negative Factors

Margin compression

Declining net and operating margins reflect rising costs or weaker pricing power versus OEMs. Persisting margin erosion reduces retained earnings and free cash flow, constraining reinvestment capacity and making the business more sensitive to commodity cycles and competitive pricing pressures over the medium term.

Sharp negative free cash flow growth

Very large negative FCF growth driven by elevated capital expenditure weakens cash reserves and can force reliance on external financing or slower deleveraging. Over several quarters this can limit flexibility for share returns, make funding new product investments harder, and elevate liquidity risk if capex persists.

Earnings pressure (EPS decline)

Material EPS decline signals underlying profitability challenges beyond one-off items. Persistent earnings erosion hampers ability to fund capex internally, reduces retained earnings for R&D or tooling, and may undermine confidence with OEMs and suppliers if margins remain depressed across cycles.

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 (low debt-to-equity of 0.18 and solid equity ratio of 60.14%) and steady revenue growth (6.84%) support the score, but declining profitability (net margin down to 3.14% with weaker EBIT/EBITDA margins) and sharply negative free cash flow growth (-250.61%) temper it.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	24.46B	23.99B	22.45B	20.44B	15.89B	13.33B
Gross Profit	6.66B	6.59B	6.26B	5.98B	4.06B	3.53B
EBITDA	1.90B	1.85B	2.33B	1.91B	1.31B	1.08B
Net Income	699.48M	752.63M	1.07B	871.17M	369.05M	117.26M
Balance Sheet
Total Assets	17.71B	14.63B	12.75B	10.74B	10.00B	9.33B
Cash, Cash Equivalents and Short-Term Investments	2.03B	163.08M	753.64M	572.83M	789.12M	728.84M
Total Debt	2.64B	1.56B	1.15B	617.64M	709.92M	485.16M
Total Liabilities	6.33B	5.83B	4.53B	3.41B	3.39B	3.09B
Stockholders Equity	11.38B	8.80B	8.22B	7.03B	6.32B	5.99B
Cash Flow
Free Cash Flow	-1.43B	-805.75M	-229.80M	-21.36M	-140.67M	541.61M
Operating Cash Flow	230.62M	1.94B	1.72B	952.00M	1.08B	912.58M
Investing Cash Flow	-1.66B	-2.72B	-1.72B	-844.43M	-1.26B	-401.99M
Financing Cash Flow	3.28B	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 135.28, above the 50-day MA of 140.20, and above the 200-day MA of 144.78, indicating a bearish trend. The MACD of -2.89 indicates Positive momentum. The RSI at 43.15 is Neutral, neither overbought nor oversold. The STOCH value of 27.37 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	₹24.88B	22.79	―	2.39%	9.63%	-64.21%
AUTOAXLES	68 Neutral	₹26.24B	18.33	―	1.63%	-2.78%	2.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JTEKTINDIA	61 Neutral	₹36.19B	48.24	―	0.49%	4.44%	-25.67%
STERTOOLS	60 Neutral	₹6.81B	157.48	―	0.87%	-19.33%	-26.30%
WHEELS	58 Neutral	₹23.75B	14.57	―	1.34%	2.22%	29.00%
ROTO	55 Neutral	₹10.93B	47.85	―	0.36%	2.00%	-20.08%

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.