Shares of Jamna Auto skyrocketed over 8% to hit an intraday high of ₹117.40.
What Happened: The surge today comes as ICICI Direct assigned a ‘buy’ call to the stock. Analysts at ICICI Direct see the stock going up to ₹135 in the next six months.
The firm said that the bullish thesis is based on the cyclical upswing in domestic CV space amidst robust infra spends by the government and revival in the private capex cycle.
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The analysts highlighted that Jamna Auto plays a pivotal role as a primary supplier of suspension products in the auto sector, commanding a prominent market share. As industry dynamics continue to be favorable, the company is poised to gain significantly from these trends, the firm added.
In the upcoming period, the brokerage projects that the company will achieve a compound annual growth rate (CAGR) of 15.1% in sales over the financial year 2023 to 2025.
Price Action: Jamna Auto’s share price was up 7.93% to trade at ₹117.10 in the early hours of trading on Monday. Axis Mutual Fund owns a 1.48% stake in the company.
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