JBMA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.1

Let’s break down JBM Auto (JBMA) across key dimensions 🔍

📊 Core Financials

Profitability

ROE (16.0%) and ROCE (14.2%) are healthy, showing efficient capital deployment.

EPS of ₹8.54 seems modest for its price, raising valuation concerns.

Quarterly Performance

PAT increased from ₹52.6 Cr. to ₹66.3 Cr. — a 19.0% QoQ gain indicates momentum, but not explosive growth.

Leverage

Debt-to-equity ratio of 1.95 is quite high. This aggressive capital structure might be sustainable for expansion, but raises financial risk flags.

Dividend Yield

Just 0.12%, which won't appeal to income investors.

🧮 Valuation Metrics

Metric Value Implication

P/E Ratio 75.8 ⚠️ Extremely high vs industry avg

P/B Ratio ~11.3 Signals overvaluation

PEG Ratio 8.37 Exaggerated growth assumptions

JBMA appears significantly overvalued based on conventional valuation benchmarks.

⚙️ Business Model & Edge

JBMA is a leading auto-component manufacturer, supplying across segments including electric vehicles.

Its positioning in EV value chain offers long-term potential.

High debt may be tied to R&D and capacity expansion, which could pay off later — but demands watchfulness.

FII holding down (-0.45%), suggests waning global investor confidence.

Flat DII movement (+0.02%), shows neutral domestic sentiment.

📍 Entry Zone & Technical View

Current Price: ₹647 ₹

DMA-50: ₹661 ₹, DMA-200: ₹711 ₹ — stock trading below key averages, showing weakness.

RSI: 47.5, MACD: -5.02 — technically neutral to bearish.

📌 Suggested Entry Zone

Wait for accumulation signs. Entry may be safer around ₹600–₹620 if MACD turns positive and volume picks up.

⏳ Long-Term Holding Outlook

Solid ROE, decent growth prospects in EV and auto segments.

But overstretched valuation and high debt imply elevated risks.

Accumulate gradually only if fundamentals improve or market re-rates the sector.

Keep watch on quarterly earnings momentum and debt repayment.

Curious how JBMA compares with other auto-component stocks or EV players? I can set up a quick peer analysis if you’d like 🚗📈.

Edit in a page