JBMA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.6

📊 Financials & Profitability

Revenue & Profit Trends: Quarterly PAT declined from ₹39.3 Cr to ₹32.1 Cr, showing a negative profit variation of -5.37%. This signals short-term pressure on margins.

Return Metrics

ROE: 12.1% and ROCE: 14.3% — decent, but not industry-leading.

EPS: ₹5.59 — relatively low for a ₹736 stock price.

Debt Profile: Debt-to-equity at 1.13 is high, suggesting aggressive expansion or capital intensity.

Dividend Yield: Just 0.12%, indicating reinvestment focus over shareholder payouts.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 132 Extremely high — far above industry PE of 29.1.

P/B Ratio ~15 Very expensive relative to book value ₹49.

PEG Ratio -25.2 Negative PEG suggests earnings contraction or unreliable growth forecast.

🔍 Conclusion: Valuation is highly stretched. Market may be pricing in future growth from EV and auto-tech segments, but current fundamentals don’t justify this premium.

🏭 Business Model & Competitive Edge

Core Operations: JBM Auto manufactures auto components, electric vehicles, and buses — a diversified play in mobility.

EV Focus: Strong positioning in electric mobility and smart transport solutions. Recent funding and expansion into electric buses are strategic positives

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Innovation & R&D: Investments in automation and smart manufacturing support long-term scalability.

📉 Technicals & Entry Zone

RSI: 72.3 — overbought zone, caution advised.

MACD: 25.5 — bullish momentum.

DMA Levels: Current price well above both 50-DMA and 200-DMA — technically strong but overheated.

📌 Suggested Entry Zone: ₹640–₹680 range, closer to 200-DMA, would offer a safer entry point.

🕰️ Long-Term Holding Guidance

Hold if Invested: Only if you believe in long-term EV growth and JBM’s execution.

Avoid Fresh Entry at Current Levels: Valuation is too rich; wait for correction.

Monitor: Debt levels, margin recovery, and EV segment performance.

Would you like a peer comparison with other EV-focused auto stocks or a forecast model for 2030?

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