If You'd Invested Rs 10,000 in JBM Auto Stock 10 Years Ago, Here's How Much You'd Have Today

Part of the esteemed JBM Group, JBM Auto has become a significant player in global manufacturing and sustainable mobility.

Specialising in automotive solutions, electric vehicles (EVs), EV charging infrastructure, EV aggregates, and renewable energy, JBM Auto is at the forefront of innovation and sustainability.

With a diverse product portfolio that includes buses, EVs, and advanced green technologies, the company leverages decades of industry expertise to offer sustainable and efficient solutions.

As a key subsidiary of the US$ 3.0 bn JBM Group, JBM Auto benefits from a four-decade-long legacy of product innovation and value creation.

The company is aligning with global trends, such as zero-emission technologies, decarbonisation, digitisation, and the circular economy.

With a clear focus on sustainable mobility and India's transformation into a global manufacturing powerhouse, JBM Auto is adapting to emerging trends while delivering solutions that enhance efficiency, reduce carbon footprints, and promote a cleaner environment.

Let's have a closer look at the company...

About JBM Auto

The company is a leading player in the global electric bus and EV ecosystem.

It specializes in manufacturing sophisticated, technologically advanced, zero-emission electric buses that set class-leading benchmarks across various regions worldwide.

It has established the largest dedicated integrated electric bus manufacturing facility outside of China, in the Delhi-NCR region. This facility has the capacity to produce 20,000 buses annually.

JBM currently offers a diverse portfolio of electric buses, including models for city transport, intercity travel, luxury coaches, staff shuttles, school buses, and special purpose vehicles.

JBM Auto vs Sensex

If you had invested Rs 10,000 in JBM Auto 10 years ago, your investment would be worth Rs 160,011 today. This represents a staggering 1,500.1% return over 10 years.

In comparison, the Sensex would have given you a return of 210.3% during the same period.

The stock has consistently performed since its listing on the exchanges. Since being listed in 2005, the stock price has rallied over 35,122%.

Despite the lows caused by the coronavirus pandemic in early 2020, >JBM Auto's shares have displayed remarkable resilience, bouncing back strongly.

Robust Financial Performance

In Q1 FY25, Sales, including other operating income, increased by 21.0%, reaching Rs 11.4 bn compared to Rs 9.5 bn in Q1 FY24. This growth was driven by record-high sales for a first quarter across all three segments.

The OEM division reported a remarkable 91.4% increase in revenue year over year, with EBITDA rising by 68.7%. Meanwhile, the auto component division also achieved its highest Q1 revenues, up by 21.0%.

The company's EBITDA grew by 25%, to Rs 1.5 bn, an increase from Rs 1.2 bn during the same quarter last year.

Net profit rose by 10.0%, reaching Rs 331.8 m compared to Rs 301.7 m in the previous financial year's corresponding quarter.

Earnings per share (EPS) for Q1 FY25 stood at Rs 2.8, up from Rs 2.6 in Q1 FY24.

During this quarter, JBM Auto delivered the first batch of 50 intercity buses to Telangana, part of a larger order of 500 buses. The company also introduced India's first 9-meter low-floor air-conditioned bus in Delhi.

Recent Developments

During the quarter, JBM Electric signed a strategic agreement with LeafyBus for the supply of 200 ultra-modern electric luxury buses.

This partnership marks a significant step forward in promoting innovation in green public mobility and decarbonisation, in line with the company's ESG and SDG goals.

Under the agreement, JBM will deliver the 200 electric intercity buses, which are equipped with advanced technology and features designed to provide passengers with a comfortable, safe, and eco-friendly travel experience.

These buses will operate on various routes, enhancing connectivity between cities while significantly reducing the carbon footprint associated with intercity travel.

Additionally, a subsidiary of JBM Auto, JBM ECOLIFE Mobility has secured US$ 100 m in funding from the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB).

This investment aims to boost the supply and operations of electric buses in India. JBM ECOLIFE Mobility plans to use the funds to introduce 650 more electric buses across multiple states in a phased manner.

What Next?

The company plans to increase its overall revenue to over Rs 65 bn in FY25, with substantial contributions from the EV and bus segments, in addition to growth from other areas.

JBM Auto is targeting revenue of Rs 30 bn from its electric vehicle business for the current financial year, a significant increase from Rs 17.5 bn in FY24. Additionally, JBM Auto aims for an EBITDA margin exceeding 12% for FY25.

Management has dismissed market speculation about a potential demerger, emphasising the company's focus on expanding all its business sectors.

Currently, the company has an order book of 5,000 buses, and it plans to deliver 2,500 of those within this financial year. It has no plans to list its EV business or bring in a strategic investor.

JBM Auto is also actively seeking more tender opportunities as cities and states across the country prioritising bus transportation.

Conclusion

JBM Auto has established itself as a key player in the global manufacturing and sustainable mobility sectors, backed by its deep expertise and innovative approach to green technologies.

JBM Auto's diverse portfolio of products, including electric buses and advanced EV aggregates, positions it at the forefront of the evolving automotive landscape.

Several key trends are driving the growth of the sectors JBM Auto operates in.

First, the increasing global emphasis on zero-emission technologies and sustainable mobility is creating significant opportunities for the company in decarbonising the transportation sector.

Second, governments and organisations worldwide are placing a higher priority on reducing carbon footprints, which aligns perfectly with JBM Auto's focus on renewable energy and circular economy principles.

Third, the rapid adoption of electric vehicles and green public mobility solutions, especially in urban and intercity transport, is fuelling demand for JBM Auto's eco-friendly offerings, positioning the company as a leader in this transition.

As the push toward sustainability continues, companies like JBM Auto that are able to adapt to these trends and focus on innovative, efficient solutions are well-placed for long-term success.

We encourage investors to review JBM Auto's most recent financial factsheet and quarterly results, along with its strategic initiatives, to gain a comprehensive understanding of the company's growth potential.

Happy investing!

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