This small-cap auto company has approved capacity expansion; stock gains 4%

JTEKT India shares rise: Shares of JTEKT India rose as much as 4.44 per cent to hit a fresh 52-week high of Rs 221.10 per share on Wednesday. 

The uptick in the stock price came after the company announced that it has evaluated and approved capacity expansion for CVJ Forging Child Part.

In an exchange filing, JTEKT India said, “We wish to inform you that the Company has evaluated and approved capacity expansion for CVJ Forging Child Part."

The proposed capacity addition is approximately 1.4 million. The investment required, JTEKT India said, will be finalised and approved by the Board while framing the installation capacity. However, the mode of financing will include a mix of internal accruals and borrowings, the company added. 

“These CVJ forging child part are of captive consumption purpose and will be totally utilised within the Company for supporting the existing product (CVJ) & new product to cater the fast growing Indian original equipment manufacturers (OEMs) and global demand,” JTEKT said in a statement.

The proposed capacity is to be added by October 2026, JTEKT India said.
 

JTEKT India Limited is a subsidiary of JTEKT Corporation, a Japanese multinational corporation specialising in automotive and industrial components. 

JTKET India operates in the field of manufacturing and supplying automotive components and industrial bearings. 

The company is involved in the manufacture of steering systems, driveline components, bearings, and machine tools. These products cater to both automotive OEMs (Original Equipment Manufacturers) and the industrial sector. It produces a range of automotive components including steering columns, electric power steering systems (EPS), hydraulic power steering systems (HPS), and driveline components such as constant velocity joints (CVJs). In the industrial sector, JTKET India manufactures bearings used in various applications.

The market capitalisation of this SmallCap company is Rs 5,546.53 crore, according to Bombay Stock Exchange (BSE).

At 12:46 PM, shares of JTEKT India were trading 3.07 per cent higher at Rs 218.20 per share. In comparison, BSE Sensex was trading 0.63 per cent higher at 78,546.13 levels.