⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
JBMA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | JBMA | Market Cap | 13,839 Cr. | Current Price | 585 ₹ | High / Low | 790 ₹ |
| Stock P/E | 85.4 | Book Value | 51.4 ₹ | Dividend Yield | 0.15 % | ROCE | 14.3 % |
| ROE | 12.1 % | Face Value | 1.00 ₹ | DMA 50 | 559 ₹ | DMA 200 | 620 ₹ |
| Chg in FII Hold | 0.02 % | Chg in DII Hold | 0.01 % | PAT Qtr | 45.6 Cr. | PAT Prev Qtr | 45.1 Cr. |
| RSI | 60.7 | MACD | -14.8 | Volume | 4,78,46,574 | Avg Vol 1Wk | 98,71,197 |
| Low price | 477 ₹ | High price | 790 ₹ | PEG Ratio | -16.4 | Debt to equity | 1.56 |
| 52w Index | 34.6 % | Qtr Profit Var | 50.1 % | EPS | 6.60 ₹ | Industry PE | 25.0 |
📊 Core Financials
- Revenue Growth: PAT stable at ₹45.6 Cr vs ₹45.1 Cr
- Profit Margins: Moderate with ROE at 12.1% and ROCE at 14.3%
- Debt Ratios: High leverage (Debt-to-Equity 1.56), financial risk elevated
- Cash Flows: Dividend yield of 0.15% is minimal
- Return Metrics: Efficiency below industry leaders
💹 Valuation Indicators
- P/E Ratio: 85.4 (far above industry average of 25, highly overvalued)
- P/B Ratio: ~11.4 (Price ₹585 / Book Value ₹51.4)
- PEG Ratio: -16.4 (negative, signals weak earnings growth outlook)
- Intrinsic Value: Appears stretched given current multiples
🏢 Business Model & Competitive Advantage
- Operates in auto components manufacturing with exposure to OEMs
- Competitive advantage lies in scale and established client relationships
- High debt and weak profitability metrics reduce sustainability
📈 Entry Zone Recommendation
- Current Price: ₹585
- Support Zone: ₹477 – ₹520 (near 52-week low, RSI at 60.7 indicates neutral momentum)
- Long-term Holding: Risky due to high debt and overvaluation; suitable only for aggressive investors
✅ Positive
- Quarterly PAT stable (₹45.6 Cr vs ₹45.1 Cr)
- Institutional holdings slightly increased (FII +0.02%, DII +0.01%)
- Strong industry presence in auto components
⚠️ Limitation
- High debt-to-equity ratio (1.56) raises financial risk
- P/E ratio significantly above industry average
- Dividend yield is negligible
📉 Company Negative News
- Valuation multiples suggest overpricing
- Technical indicators (MACD negative, trading below DMA 200) show weak momentum
📈 Company Positive News
- Quarterly profit variation of 50.1% YoY indicates growth potential
- Strong trading volumes reflect investor interest
🌐 Industry
- Auto components industry benefits from automotive demand recovery
- Industry P/E at 25 highlights JBMA trading at a steep premium
🔎 Conclusion
JBMA shows stability in earnings but faces challenges with high debt and stretched valuations. Entry around ₹477–₹520 may provide a safer margin for aggressive investors. Long-term holding requires caution until debt levels reduce and earnings growth improves.