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Business News/ Markets / Stock Markets/  JBM Auto jumps 10% as subsidiary bags 7,500 crore order for electric buses

JBM Auto jumps 10% as subsidiary bags ₹7,500 crore order for electric buses

JBM Auto Ltd. witnessed a substantial surge in its shares, climbing around 10 percent on Tuesday, following a significant announcement.

JBM Auto jumps 10% as subsidiary bags ₹7,500-cr order for electric busesPremium
JBM Auto jumps 10% as subsidiary bags 7,500-cr order for electric buses

JBM Auto Ltd. witnessed a substantial surge in its shares, climbing around 10 percent on Tuesday, following a significant announcement. The company informed the exchanges that its subsidiary, JBM Ecolife Mobility Pvt. Ltd., has been declared the L1 (Lowest Bidder) and awarded the tender for an electric bus order. This development underscores the subsidiary's success in securing a prominent role in the electric mobility sector, further strengthening JBM Auto Ltd.'s position in the market.

JBM Ecolife Mobility, a subsidiary of JBM Auto, has secured a significant order worth 7,500 crore for 1,390 electric buses. This substantial tender has been awarded by Convergence Energy Services Limited (CESL) as part of the PM-eBus Sewa Scheme. Under this scheme, JBM Ecolife Mobility will be responsible for the procurement, supply, operation, and maintenance of the buses, along with the development of associated electric and civil infrastructure on a gross cost contracting (GCC) basis. The company is tasked with executing the order within the next 12 to 18 months.

Following this announcement, JBM Auto's stock jumped as much as 9.8 percent in intra-day deals on Tuesday to its day's high of 2060.60. The stock has already given multibagger returns in the last 1 year, soaring 199 percent and has advanced over 40 percent in 2024 YTD.

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It has lost around 12 percent in March so far, snapping after 4 months of gains since November 2023. Meanwhile, it rose 12.7 percent in February and 30.7 percent in January this year.

Despite today's surge, the stock is still around 15 percent away from its record high of 2,417.30, hit on February 19, 2024. Meanwhile, it has rallied over 241 percent from its 52-week low of 604.00, hit on March 20, 2023.

“We hereby inform you that JBM Ecolife Mobility Private Limited, a subsidiary of JBM Auto Limited, has been declared as L1 and awarded the tender as a bus operator for procurement, Supply, operation and maintenance of 1,390, electric buses (approx. 65 percent) and development of allied electric and civil Infrastructure on Gross Cost Contracting (GCC) under the PM-eBus Sewa Scheme. The company has on 19th March 2024 acknowledged the Letter of Confirmation of Quantities eligible for award as issued by Convergence Energy Services Limited (CESL)," said JBM Auto in a communication to bourses.

Read here: Why is Indian stock market down today — explained with 5 crucial reasons

JBM Auto Limited is a manufacturer of auto systems with a presence in the e-mobility space. The company manufactures and sells sheet metal components, tools, dies and molds and buses, including the sale of spare parts, accessories, and maintenance contracts for buses.

In the December quarter, JBM Auto demonstrated robust performance, reporting a substantial increase in revenue and net profit compared to the previous year. The company's revenue stood at 1,346 crore, marking an impressive 41 percent year-on-year growth. Similarly, its net profit surged to 48.63 crore, representing a remarkable 46 percent increase from 33.17 crore recorded in the corresponding period last year.

Highlighting its operational achievements, JBM Auto achieved its highest turnover during this quarter, reaching a significant milestone. Particularly noteworthy was the performance of its OEM division, which achieved the highest turnover at the segment level, amounting to 545 crore.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.

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Published: 19 Mar 2024, 03:35 PM IST
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