JBM Auto, a renowned manufacturer of electric buses, experienced a significant surge of 18% in its share price, reaching a new 52-week high at Rs 1,548. The remarkable increase came as the company and its subsidiaries secured orders for approximately 5,000 electric buses.
In an exchange filing, JBM Auto stated that the orders were received from various state transport undertakings in Gujarat, Haryana, Delhi, Telangana, Orissa, as well as prominent Fortune 500 companies and leading corporates in India. The orders encompass a range of applications, including city buses, staff buses, and tarmac coaches, with options available in both 9-meter and 12-meter categories.
Currently, the JBM Auto stock is priced at Rs 1,450 on the Bombay Stock Exchange (BSE), showing a notable increase of 10%. Investors who previously invested in JBM Auto have witnessed substantial returns, with stock surging over 230% in past year and an astonishing 1,600% in last 3 years.
While the average target price of the stock is projected to be Rs 685, suggesting a potential downside of 53%, the company's strong performance and the recent order success have generated positive market sentiment. JBM Auto aims to strengthen its position as a comprehensive provider of electric mobility solutions, leveraging its in-house vehicle technology, battery technology, and charging solutions. It also plans to capitalize on emerging market demands and expand its market share in the electric mobility domain.
JBM Group, the parent company of JBM Auto, specializes in manufacturing automotive products and sub-systems. With a market capitalization of approximately Rs 17,322 crore, the company offers a range of products including air tanks, chassis and suspension parts, cross-car beams, exhaust systems, fuel tanks, and heat shields.
In terms of financial performance, JBM Auto has demonstrated impressive growth over the years. Sales revenue increased significantly from Rs 1,364 crore in FY13 to Rs 3,857 crore in FY23. Profit after tax (PAT) has also experienced a surge, rising from Rs 57 crore to nearly Rs 124 crore during the same period.
Although the company's revenues for the quarter ending in March 2023 saw a YoY decline of 8% to Rs 964 crore, with PAT standing at Rs 26.81 crore, the recent big order for electric buses is expected to drive future growth and expansion for JBM Auto.