Shares of JBM Auto rose sharply in Friday's trading session following the company's announcement of securing orders for around 5,000 electric buses. The company in a regulatory filing on Thursday said, "JBM Auto and its subsidiaries (Company) have won orders for around 5000 electric buses for supplying to various STUs in the states of Gujarat, Haryana, Delhi, Telangana, Orissa among others and multiple Fortune 500 companies coupled with leading corporates of the country."
"With a healthy order book in place, the company is well poised to further consolidate its position as an end-to-end electric-mobility solution provider with indigenously developed vehicle technology, battery technology, and charging solutions. The company is ready to serve the emerging market requirements in the electric-mobility domain, thereby, gaining new market access and expanding our market share," the company added.
In response to this positive development, the shares rallied 17% to register a new all-time high of ₹1,539.60 apiece. Notably, the shares have been on an upward trajectory since October of the previous year, consistently recording monthly gains.
Looking at the long-term performance, JBM Auto stood out as a strong performer, generating a stellar return of 1022% over the past five years. Looking even further back, over the last decade, the stock has delivered an astounding return of 26132%.
JBM Auto is engaged in the automotive business that manufactures and sells sheet metal components, tools, dies, and moulds, as well as buses, including the sale of spare parts, accessories, and maintenance contract of buses.
Earlier in January, JBM Auto launched its first self-designed and self-manufactured electric luxury coach called 'Galaxy' at the Auto Expo 2023 and also showcased its new series of e-buses, including city buses as well as school buses.
In terms of financials, the company reported a consolidated net profit of ₹28 crore for the March quarter, as compared to a net profit of ₹86 crore in the year-ago quarter, ending FY23 with a total net profit of ₹125 crore, a drop of 19.87% over FY22's net profit of ₹156 crore.
The revenue from operations fell to ₹1,010 crore, a drop of 5.7% YoY from ₹1,072 crore in Q4FY22. This was due to a slower ramp-up in the bus division as a few clients postponed the delivery schedule to Q1/Q2 FY24, according to analysts.
Sequentially, the revenue from its bus division showed significant growth of 121%, reaching ₹222 crore.
Following the Q4 performance, brokerage firm Dolat Capital maintained its positive outlook for JBM Auto. The brokerage highlighted the company's success in securing new business in the component segment, the promising revenue potential in the high-margin tooling business (with a margin of +25%), and the expected economies of scale in the bus division.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.