JBM Auto cracks 15% as investors book profit after a 51% rally in 12 days

In the last session on July 5, JBM Auto had hit a 52-week high of Rs 1,517.5 per share. On a year-to-date basis, the share has more than doubled investors' wealth with a whopping rally of 190%

Shares of auto ancilliary company JBM Auto cracked 14.8 per cent to hit an intra-day low of Rs 1,272 apiece on the BSE as investors took to profit booking following a sharp rally in the stock over the last few days. From a close of Rs 990 on June 16, the stock surged 51 per cent in the last 12 days to Rs 1,493. 

In the last session on July 5, the stock had hit a 52-week high of Rs 1,517.5 per share. On a year-to-date basis, the share has more than doubled investors' wealth with a whopping rally of 190 per cent. In comparison, the BSE Sensex is up 7.6 per cent during this period.  

In a release on Wednesday, Asia Index Pvt Ltd announced changes in BSE indices on account of the HDFC merger into HDFC Bank. JB Auto, currently in the BSE Smallcap index, will be replacing HDFC in the BSE 500 index as part of the recalibration.  

That apart, as reported on June 16, Isuzu Motors, Japan — the promoters of commercial vehicle maker SML Isuzu, is said to be considering selling its entire 44 per cent stake in the company. The Japanese firm is talking to several potential investors, including JBM Auto, to sell its stake, reports claim. 

Gurugram-based JBM Group is a $2.6-billion global conglomerate with operations in more than 25 locations across 10 countries throughout the world. The company is a manufacturer of key auto systems, electric vehicles (EV) and buses. The group firm JBM Auto has a market capitalisation Rs 15,608 crore. The company is engaged in manufacturing key auto components and high-level

assemblies. 

It is also making inroads in the EV space. In 2021, JBM focused mainly on expansion of its EV portfolio along with new customers.

"4 new variants of 9m HF EV buses with completely indigenous chassis under Phased Manufacturing Plan (PMP) have been developed and installed. During FY21, we also acquired and delivered orders from DIMTS cluster and DTC for 368 CNG BS-VI busses and 200 EV buses, " it  said in the annual report.

In Q4FY23, the company's performance was dismal with its profit dropping 66 per cent YoY to Rs 28.4 crore while revenue fell 6 per cent YoY to Rs 1,010 crore.