JBM Auto share price rises 5% after winning electric bus contracts worth ₹1,800 crore in Ahmedabad

Stock Market


JBM Auto’s share price rose 5% on Monday following the announcement that JBM Ecolife Mobility, a subsidiary of the company, has been awarded contracts to operate, maintain and procure 343 electric buses in Ahmedabad. 1,800 crore. JBM Auto’s stock price opened today at an intraday high of 1,725 ​​apiece on BSE, the stock hit an intraday low of 833.05 per share.

According to Sachin Gupta, Senior Research Analyst at 5paisa, the stock is trading sideways on the daily chart after finding support around the 50-DMA at 1,626 levels on December 19, 2024. Currently, the price is hovering below the descending trendline and the upper Bollinger Band, indicating immediate resistance near the 1,730 level.

However, the stock is also forming a bullish flag pattern and finding support around the mid-band, indicating the possibility of further bullish momentum. Based on these mixed technical parameters, buying JBM Auto is only recommended after a break above 1,730 level targeting a potential rise to 1,900, with a stop loss set at 1,618,” said Gupta.

Second quarter results

Auto and electric carmaker JBM Auto announced an 11.45% increase in net profit 49.15 crore in the September quarter compared to the same period last year. The company recorded a net profit of 44.10 crore during the July-September quarter of FY24.

For the second quarter, net sales, together with other operating income, amounted to 1,285.98 crore, up from 1,231 crore in Q2FY24, which the company says represents a year-on-year growth of 4.47%.

EBITDA (earnings before interest, taxes, depreciation and amortization) increased by 18.54% to 174.81 crore for the September quarter, compared to 147.47 crore in the same quarter of FY24, JBM Auto reported.

The company highlighted that it achieved the highest ever second quarter sales in its OEM business and recorded a robust order book in both the OEM and toolroom divisions, which will support continued growth momentum in FY25.

Stock split

In October, JBM Auto’s board approved the split of one of its shares, which changed its nominal value 2 to 2 shares with a nominal value of 1 each. The company had previously implemented a stock split in 2014, converting one share worth 1.50 euros 10 in two shares worth 5 each. The second stock split for JBM Auto took place in 2022, with the shares appreciating 5 each were converted into shares worth 2 each.

Disclaimer: The above views and recommendations are those of individual analysts, experts and brokerage firms, not Mint. We advise investors to contact certified experts before making investment decisions.

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