JBM Auto
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
JBM Auto's management is emphasizing a strategic pivot towards electric mobility, with a focus on scaling EV production and enhancing manufacturing productivity. The company's e-bus segment has become a significant revenue driver, contributing 35% of FY24 turnover, supported by a robust order book exceeding Rs. 14,800 crore. This aligns with Vista's forecast of stable revenue growth and margins, as the company capitalizes on government initiatives and increasing EV adoption. However, challenges such as rising raw material costs and execution risks in a rapidly evolving market remain pertinent. The auto ancillaries sector is experiencing a sunrise phase, with improving pricing power and a projected CAGR of 10.86% over the next few years, which supports JBM Auto's growth trajectory. Over the next 12-24 months, key opportunities include expanding its e-bus market share and launching new battery services, while watchpoints include potential geopolitical tensions and inflationary pressures that could impact margins. Overall, Vista's outlook reflects cautious optimism, with an expected upside of 23.18% and a target price of ₹794.79
Why We Like This Stock
- Significant market share in the electric bus sector, with over 30% share and a robust order book
- Strategic focus on expanding into high-growth segments like EV battery services and international markets
- Positive alignment with government initiatives promoting electric mobility and local manufacturing
Things To Watch Out For
- Rising raw material costs could pressure profit margins
- Execution risks associated with rapid technological transitions in the EV space
- Geopolitical tensions may create demand uncertainty and impact overall market conditions
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 5,009 | 5,472 | 6,088 | 6,448 | 7,087 |
| Profit Before Tax (Cr.) | 241 | 274 | 320 | 349 | 381 |
| PBT Margin | 4.8% | 5.0% | 5.3% | 5.4% | 5.4% |
| Net Profit (Cr.) | 209 | 194 | 244 | 269 | 270 |
| Earnings Per Share | 8.2 | 7.7 | 9.5 | 10.5 | 11.4 |
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 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.