The shares of JBM Auto surged 8.47% on Thursday and reached a fresh 52-week high of ₹ 644.20 apiece on the National Stock Exchange (NSE). This happened after the Maharashtra government announced that the total EV fleet under the state transportation network would be increased by 5,000.
While presenting the state’s fiscal roadmap for 2023-24, Maharashtra Deputy Chief Minister Devendra Fadnavis said the total EV fleet under the state transportation network would be increased by 5,000.
Following the announcement, JBM Auto which is aiming for a lion’s share of the electric transportation market in India shot up post 3:00 PM on Thursday. The scrip settled at ₹ 633.50 apiece on the NSE.
JBM Auto is betting on the electrification of public transport. It already has more than 1000 e-buses deployed in several states in India. Recently the company unveiled a fully electric, luxury coach at the AutoExpo, and according to the company, the vehicle’s lithium-ion battery can cover 1,000 km per charge.
The company has a market capitalization of 7022 crores and is a small-cap company. It has an ideal return on equity of 19.03%, but a high debt-to-equity ratio of 1.74. Its shares were trading at a price-to-earnings ratio (P/E) of 38.88, which is slightly lower than the industry P/E of 39.73, indicating that the stock might be undervalued as compared to its peers.
Written by Simran Bafna
