115% up from a 52-week low! Do you own this multibagger stock?

Shares of Jamna Auto Industries Limited jumped around 115 per cent to Rs 107.65 mark on Friday from its 52-week low of Rs 50.05. Brokerages have maintained a bullish stance on the stock post its September quarter earnings.
 
The small-cap stock ended 2.35 per cent lower at Rs 103.85 against the previous close of Rs 106.35 on the Bombay Stock Exchange (BSE) in a weak market on Friday.
 
With a market capitalisation of Rs 4,138 crore, the shares stand higher than 50-day, 100-day and 200-day moving averages but lower than 5-day and 20-day moving averages.
 
Long-term investors have made big gains by investing in the stock as it has surged over 1,000 per cent in the last ten years.
 
Brokerage house Dolat Capital believes a fresh medium and heavy commercial vehicles (MHCV) cycle has begun which is poised for 3-5 years of upcycling led by traction in e-commerce, infra, real estate and mining activities. Jamna Auto is an ideal play on revival on the MHCV cycle given its 70% market share in leaf spring.
 
It expects heavy-duty trucks to see a sharp uptick in demand led by a rapid increase in the demand from e-commerce for faster deliveries and pick up in the construction and mining segment. As heavy-duty trucks are covering greater distances per day due to faster delivery requirements for e-commerce, there will be a need for the replacement of leaf springs much earlier than before.
 
"We forecast that the Revenue/EBITDA will grow at 34/39% CAGR over FY21-24E led by revival in the high tonnage MHCV segment with an uptick in economic activities and margin expansion. At the current market price, the stock is trading at 18x FY24E EPS. We maintain Buy with a target price Rs 133 (based on 22x of FY24E EPS)," the brokerage house added.
 
IDBI Capital noted that the increase in tonnage volume due to axle norm has settled and there will be fresh demand for CVs as regional restriction reduces.
 
The brokerage firm believes that factors like flattening of second COVID wave; pickup in vaccination drive will help in bringing normalcy in the economy and will lead to better fleet operator’s profitability.
 
"We expect the Company to report Sales/PAT growth of 15%/26% and 15%/20% for FY23E/24E respectively. We rate stock as HOLD with TP of Rs 115 based on PER of 28x FY24E EPS," it added.
 
According to MarketsMojo, the company has declared positive results for the last four consecutive quarters and has a strong ability to service debt as it has a low Debt to EBITDA ratio of 0.69 times.
 
The stock is trading at a discount compared to its average historical valuations and has a fair valuation. The technical trend has improved from mildly bullish on October 12, 2021, and the stock is in the bullish range now. Multiple factors for the stock are bullish like MACD, Bollinger Band, KST, DOW and OBV.
 
Also, the institutional investors have increased their stake by 1.65% over the previous quarter and collectively hold 18.92% (stake) in the company.