JBM Auto stock hits 52-week high as company wins order to supply 5,000 electric buses

JBM Auto shares: In its regulatory filing, the company said, "JBM Auto Limited and its Subsidiaries (Company) have won orders for approx. 5000 electric buses for supplying to various STUs in the states of Gujarat, Haryana, Delhi, Telangana, and Orissa, among others, and multiple Fortune 500 companies coupled with leading corporates of the country."

JBM Auto is one of the leading manufacturers of key auto systems, electric vehicles, and buses. Image credit: https://www.jbmgroup.com/

JBM Auto shares: Shares of JBM Auto rallied 17.7 per cent to hit a 52-week high of Rs 1,548.35 apiece on the BSE on July 14 after the company won orders for around 5,000 electric buses for supply to various state transport units (STUs) in various states.

In its regulatory filing, the company said, "JBM Auto Limited and its Subsidiaries (Company) have won orders for approx. 5000 electric buses for supplying to various STUs in the states of Gujarat, Haryana, Delhi, Telangana, and Orissa, among others, and multiple Fortune 500 companies coupled with leading corporates of the country."

The company further said that different applications such as city buses, staff buses, tarmac coaches, etc. in both, 9-metre and 12-metre categories will be delivered for these orders.

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At the time of writing this news, the stock was trading 10.44 per cent higher at 1,452.35 levels.

With a healthy order book in place, JBM Autto 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. JBM Auto 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 its regulatory filing.

JBM Auto share price history

In the last 12 months, shares of the company have zoomed by 256 per cent (including today's high levels on the BSE), Trendlyne data show.

About JBM Auto

JBM Auto is one of the leading manufacturers of key auto systems, electric vehicles, and buses. As per the company's website, JBM Group is a $2.6 billion conglomerate with operations in more than 25 locations across 10 countries throughout the world.

Auto component companies' outlook

In its Q1 preview note, Nirmal Bang Securities said, "The Auto Ancillary universe’s revenue is expected to grow by 16 per cent / 8 per cent YoY or QoQ, led by higher volume in the 2W segment QoQ and better price realisations." "We anticipate an increase in EBITDA margin of 50 basis points or 210 basis points QoQ/YoY," the brokerage added.

Analysts at Kotak Institutional Equities wrote in the Q1 preview that they expect auto component companies to report a two per cent QoQ revenue increase (12% yoy growth) due to:

double-digit increase in 2W and tractor segment volumes and
mid-single growth in replacement segment volumes (batteries, tyres, and bearings), partly offset by double-digit volume declines in CV segment volumes and marginal declines in PV segment volumes.

"We expect EBITDA margin to improve by 20 bps on a qoq basis mainly on account of raw material tailwinds (lagged impact of steel price correction), benefit due to decline in energy prices for companies operating in European geography partly, and a richer product mix (higher mix of replacement and export segments)," it added.

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