JBM Auto Limited is an Indian company that has established itself as a prominent manufacturer of auto components, electric vehicles (EVs), and buses. With its operations spanning multiple sectors, the company has a diversified portfolio that caters to the automotive industry.
It is the largest manufacturer of metal forming systems in India and is recognized as one of the leading players in the global market. They have established themselves as pioneers and the largest manufacturer of skin panels in India, solidifying their position as one of the biggest players worldwide. Their offerings extend beyond skin panels, encompassing a comprehensive range of auto components that includes contract manufacturing, BIW, chassis and suspension systems, pedal boxes, tubular products, and safety-critical components and assemblies.
As an end-to-end solutions provider, they cater to businesses including 2-wheelers, 3-wheelers, passenger vehicles, commercial vehicles, and farm and construction equipment. They have also developed end-to-end in-house capabilities and expanded their portfolio from city buses to school buses, staff buses, and tarmac buses.
It serves the top global companies like Ashok Leyland, Skoda, Toyota, TATA, Honda, SML ISUZU, Mahindra, Kubota, Force, TMTL, Volkswagen, Renault, and many more.
The auto-components industry in India has a substantial market size of USD 57 billion, and its exports amount to USD 15 billion. This industry plays a significant role in contributing around 7.1% to India’s GDP and approximately 49% to the Manufacturing GDP. Additionally, it serves as a source of employment for approximately five million individuals, both directly and indirectly. It is expected to grow to USD 200 billion by FY26.
Today, the Stock closed at Rs 875.35, up by 9.05% from the previous day’s closing of Rs 802.70 on the BSE. Its 52-week high and 52-week lows are Rs 879.80 and Rs 361.70 respectively. The current market capitalisation of the company is Rs 10350 crore. The stock has delivered an absolute return of 94% in just a year, while in just three years it has given a multibagger return of over 1100%. Its 10-year return would leave you stunned is around 14500%.
Let’s compare its return with the return of Sensex
|Stock / Index||1 Month||3 Months||6 Months||1 Year||3 Years||5 Years||10 Years|
|JBM Auto ltd||5.25%||51.86%||109.53%||94.20%||1109.54%||490.82%||14489.17%|
During FY23 Company’s revenue surged by 20.81% from Rs 3193 crore to Rs 3857 crore. The Operating Margin stood at Rs 398 crore with an operating profit margin of 10%. While the net profit has declined by 20% from Rs 156 crore to Rs 125 crore. The company has increased its asset base from Rs 558 crore to Rs 1544 crore in the last five years due to this heavy capex investment company’s interest cost is in an uptrend and has increased from Rs 49 crore to Rs 126 crore. While the debt to equity is slightly higher side i.e. 1.65 times. One good thing must to observe is their reserves and surplus are growing continuously and has a cash and cash equivalent in the hand of Rs 45 crore. The company is maintaining its ROCE & ROE by 11.9% & 12.9%, respectively and the stock is trading at a PE of 82.5 times.
Their segmental revenue from the Component division has increased from Rs 2237.1 crore to Rs 3049.69 crore It is the highest contributor and nearly contributes 79% of total revenue which was earlier 70% in FY22.
Promoter holding in the company is 67.53% while FIIs and DIIs both have increased their stake in the company and as per the latest update it stood at 1.66% and 0.05%, respectively.
The Indian automobile industry is the fifth largest in the world and is expected to become the third largest by 2030. As per India Energy Storage Alliance (IESA), the Indian EV industry is expected to expand at a CAGR of 36% and the company has a portfolio of electronic buses like JBM ECO-LIFE which is India’s first 100% electric, zero-emission bus. With a growing population and growing demand for vehicles, the company will boost its revenue in the long run. Vehicle sales volume is also in an uptrend as per the latest vehicle sales volume data.
The company has also developed an in-house e-mobility ecosystem that supports the “well-to-wheel” deployment of EVs. The company has installed a charging station of over 20 MW of capacity for 500 EVs and plans to deploy over 500 MW charging stations with over 1500 destinations. Their EV Aggregates division is also dedicated to designing & producing products with diversified features. These include fast charging, long service life, high energy density, dust prevention and waterproofing. With a continuous expansion plan and the growing financial company has more potential to perform in the future. Investors must keep this on their radar.