JBM Auto
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
JBM Auto's management has articulated a clear vision for growth, particularly through its electric vehicle (EV) initiatives, which have become a significant revenue driver, contributing 35% of FY24 turnover. The company boasts a robust order book exceeding Rs. 14,800 crore, primarily from e-bus contracts, positioning it as a leader in the sector with over 30% market share in e-buses. This strategic pivot towards EVs aligns with Vista's forecast of stable revenue growth and margins, supported by the broader industry trend towards electric mobility and favorable government policies. The anticipated CAGR of approximately 6.76% in the auto ancillaries sector, coupled with JBM's strong market position and innovative product offerings, reinforces Vista's positive outlook. However, potential headwinds include rising commodity prices and geopolitical tensions that could impact margins. Over the next 12-24 months, key opportunities lie in the execution of the substantial e-bus order book and the expansion of battery services, while watchpoints include the company's ability to maintain cash conversion and navigate cost pressures. Overall, JBM Auto is well-positioned to capitalize on the evolving automotive landscape, with a fair valuation reflecting its growth potential
Why We Like This Stock
- JBM Auto's e-bus business contributes significantly to revenue, with a robust order book exceeding Rs. 14,800 crore
- The company holds a leading market share in the electric bus sector, indicating strong demand and growth potential
- Strategic expansion into battery services and international markets enhances long-term growth prospects
Things To Watch Out For
- Rising commodity prices and geopolitical tensions may pressure profit margins
- Weak cash conversion relative to the asset base could impact financial flexibility
- The company faces challenges in maintaining its competitive edge amid increasing market competition
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 5,009 | 5,472 | 6,088 | 6,457 | 7,345 |
| Profit Before Tax (Cr.) | 241 | 274 | 320 | 365 | 408 |
| PBT Margin | 4.8% | 5.0% | 525.6% | 5.7% | 5.6% |
| Net Profit (Cr.) | 209 | 194 | 244 | 281 | 290 |
| Earnings Per Share | 8.2 | 7.7 | 9.5 | 11.0 | 12.2 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
JBM Auto Limited engages in the manufacture and sale sheet metal components, tools, dies and moulds, and buses in India and internationally. It operates through three segments: Sheet Metal Components, Assemblies & Sub-assemblies (Component Division); Tool, Dies & Moulds (Tool Room Division); and OEM Division. The company offers auto components and systems, such as BIW, chassis and suspension systems, pedal boxes, tubular products, safety-critical components, and various auto assemblies for two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, and farm and construction equipment. It also provides low emission and electric buses; lithium ion batteries solutions for HV- LV battery operated vehicle, energy storage systems, and solar; and operates electric vehicles charging infrastructure. In addition, it is involved in the provision of utility scale solar power projects, battery energy storage, and power infrastructure solutions; and environment management, as well as spare parts, accessories, and maintenance contracts. It serves original equipment manufacturers in the passenger vehicles, commercial vehicles, farm equipment, and auto component manufacturers, etc., as well as state transport undertakings, aviation sector, ground handling companies, multiple aggregator and operator, defense sector, and Fortune 500 Companies. JBM Auto Limited was incorporated in 1996 and is headquartered in Gurugram, India.