Shares of this auto ancillary stock jumped 17 percent on Friday’s early trades to reach a fresh 52-week high of ₹ 1,539.60 apiece on the National Stocks Exchange (NSE). This happened after it received a major order for 5,000 electric buses. At 12:45 PM, the company’s shares were trading at ₹ 1464.00 apiece, up 11.25 percent.
JBM auto informed the stock exchanges and other stakeholders that, along with its subsidiaries, it has won orders for about 5,000 electric buses to be delivered to various STUs in the states of Gujarat, Haryana, Delhi, Telangana, Orissa among others and multiple Fortune 500 companies and with leading corporates in India. For these orders, the company will be delivering different applications such as city buses, staff buses, tarmac coaches, and so on, in both, 9 metres and 12 metres categories.
The company has a healthy order book in place and is well-poised to consolidate its position as an end-to-end electric-mobility solution provider with indigenously developed vehicle technology, battery technology and charging solutions. It is prepared to serve the requirements of the emerging markets in the electric-mobility domain, thereby gaining new market access and growing its market share.
JBM Auto is engaged in the automotive business. It manufactures and sells sheet metal components, tools, dies and moulds for buses including the sale of spare parts accessories and maintenance contracts for buses.
With a market capitalization of ₹ 15,561 crores, JBM Auto is a small-cap company. It has a low return on equity of 12.92 percent and a debt-to-equity ratio of 1.65. Its shares were trading at a price-to-earnings ratio (P/E) of 124.62, which is significantly higher than the industry P/E of 43.47, indicating that the stock might be overvalued as compared to its peers.
The company’s shareholding pattern shows that its promoters hold a 67.53 percent stake in it followed by retail investors with 30.79 percent, foreign institutions with 1.66 percent and mutual funds with 0.02 percent.
In the past year, the company’s share price increased by 254 percent to deliver multibagger returns. Therefore if an investor had invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 3.54 lakhs today!
Written by Simran Bafna
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