JBM Auto share price jumps 5% after securing ₹1,800 crore electric bus contracts in Ahmedabad
- JBM Auto share price rose 5% after JBM Ecolife Mobility secured contracts for 343 electric buses in Ahmedabad worth ₹1,800 crore. The company reported an 11.45% increase in net profit for the September quarter, with strong sales and a robust order book.
JBM Auto share price surged 5% on Monday's session, following the announcement that JBM Ecolife Mobility, a subsidiary of the company, secured contracts to operate, maintain, and procure 343 electric buses in Ahmedabad for ₹1,800 crore. JBM Auto share price today opened at an intraday high of ₹1,725 apiece on BSE, the stock touched an intraday low of ₹1648.05 per share.
According to Sachin Gupta, Senior Research Analyst at 5paisa, on the daily chart, the stock is trading sideways after finding support around the 50-DMA at 1,626 levels on December 19, 2024. Currently, the price is hovering below the falling 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 middle band, signaling the potential for further bullish momentum. Based on these mixed technical parameters, buying in JBM Auto is recommended only after a breakout above the 1,730 level, targeting a potential rise to 1,900, with a stop loss set at 1,618,” said Gupta.
Q2 Results
Automotive and electric vehicle manufacturer JBM Auto announced an 11.45% increase in net profit, reaching ₹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 FY 24.
For the second quarter, net sales, along with other operating income, amounted to ₹1,285.98 crore, up from ₹1,231 crore in Q2FY24, marking a year-on-year growth of 4.47%, according to the company.
EBITDA (earnings before interest, taxes, depreciation, and amortization) rose by 18.54% to ₹174.81 crore for the September quarter, compared to ₹147.47 crore in the same quarter of FY 24, JBM Auto reported.
The company highlighted that it achieved the highest Q2 sales ever in its OEM business and noted a robust order book in both the OEM and tool room divisions, which will support its continued growth momentum into FY25.
Stock Split
In October, the board of JBM Auto sanctioned the division of one of its shares, changing the face value from ₹2 to two shares with a face value of ₹1 each. The company had previously conducted a share split in 2014, transforming one share valued at ₹10 into two shares valued at ₹5 each. The second share split for JBM Auto took place in 2022, where shares valued at ₹5 each were converted into shares valued at ₹2 each.
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