The shares of an Auto Ancillary company, specializing in manufacturing a wide range of automotive products, including electric buses, commercial vehicles, and auto components jumped upto 19 percent upon receiving a work order from Convergence Energy Services Limited under PM E-bus Sewa Scheme-II.
Price action
With a market capitalization of Rs. 15,282.26 crores on Wednesday, the shares of JBM Auto Limited jumped upto 19 percent making a high of Rs. 674.00 per share compared to its previous closing price of Rs. 566.45 per share.
What Happened
JBM Auto Limited’s arm JBM Ecolife Mobility has received a domestic Tender as a bus operator from Convergence Energy Services Limited under PM E-bus Sewa Scheme-II valued at approximately Rs. 5,500 crore.
The Tender is for the Procurement, Supply, Operation, and Maintenance of 1,021 [Thousand twenty-one] Electric Buses and the development of allied electric and civil Infrastructure on Gross Cost Contracting [GCC]. The project will be supported by a Payment Security Mechanism (PSM), ensuring timely payments to electric bus operators and enhancing financial sustainability for industry stakeholders, and is to be executed within 12 to 18 months.
About the company
JBM Auto Ltd is a leading automotive company committed to promoting e-mobility solutions and plays a key role in the development of electric vehicles in India. JBM Auto manufactures high-quality auto parts and provides innovative solutions for the automotive industry, providing advanced manufacturing technologies and high-quality components for leading automotive brands.
Marquee clients
The company’s major clients include Ashok Leyland, Daimler, Nissan, Renault, FCA, Ford, Toyota, Tata, Honda, Escorts, Mahindra, Force Motors, Tafe, and more.
Financials
The company’s total revenue rose by 4.7 percent from Rs. 1,349.95 crore to Rs. 1,413.97 crore in Q3FY24-25. Meanwhile, Net profit rose from Rs. 48.66 crore to Rs. 52.64 crore during the same period.
Written by Sridhar J
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