The shares of JBM Auto Limited zoomed nearly 8 percent today and the scrip currently trades at Rs 1,161. The stock recorded an intra-day high today at Rs 1,164.90 which also emerges as its new 52-week high mark.
Keeping a purview of six months, the company’s stock has been successful in delivering multibagger returns of around 122 percent. It means that if someone would have invested Rs 1 Lakh into the stock, it would have converted to Rs 2.22 Lakhs within a period of six months.
The stock movements are witnessed today after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), informed that JBM Ecolife Mobility Private Limited (JBMEco), a wholly-owned subsidiary of the company, has changed its status becoming the subsidiary company with effect from 26th June 2023.
The private entity made a preferential allotment to Mr. Nishant Arya, Individual Promoter of JBM Auto making the equity shareholdings touch 83 percent.
JBM Auto plans to deploy around 5,000 E-buses across India by the end of FY23-24 and for the purpose of fulfilling the same, the company would invest nearly Rs 500 crores for building their capacity and improving the technology.
The latest financials reported have observed opposing movements as far as the operating revenues and net profits are concerned. On one hand, the operating revenues have increased from Rs 3,193 crores during FY21-22 to Rs 3,857 crores in FY22-23, and net profits, on the other hand, have seen a fall from Rs 166 crores to Rs 124 crores during the same period.
The shareholding data exhibit the Promoters holding a 67.53 percent stake, and Foreign Institutional Investors (FIIs) holding a 1.66 percent stake in the company.
JBM Auto Limited is an auto ancillary company engaged in the business of manufacturing toolings, components, etc. The company generates a majority of revenues from the latter division mentioned which manufactures automobile parts used in the passenger as well as commercial vehicles.
Written by Amit Madnani
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