JBMA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | JBMA | Market Cap | 14,057 Cr. | Current Price | 594 ₹ | High / Low | 790 ₹ |
| Stock P/E | 86.8 | Book Value | 51.4 ₹ | Dividend Yield | 0.14 % | ROCE | 14.3 % |
| ROE | 12.1 % | Face Value | 1.00 ₹ | DMA 50 | 594 ₹ | DMA 200 | 644 ₹ |
| Chg in FII Hold | 0.02 % | Chg in DII Hold | 0.01 % | PAT Qtr | 45.6 Cr. | PAT Prev Qtr | 45.1 Cr. |
| RSI | 54.8 | MACD | -10.2 | Volume | 47,03,660 | Avg Vol 1Wk | 12,62,460 |
| Low price | 489 ₹ | High price | 790 ₹ | PEG Ratio | -16.6 | Debt to equity | 1.56 |
| 52w Index | 35.0 % | Qtr Profit Var | 50.1 % | EPS | 6.60 ₹ | Industry PE | 28.7 |
📊 JBM Auto (JBMA) shows moderate fundamentals with decent ROCE (14.3%) and ROE (12.1%), but valuations are stretched (P/E 86.8 vs. industry 28.7) and debt levels are high (1.56). Technically, the stock is trading at its 50 DMA (594 ₹) but below the 200 DMA (644 ₹), with RSI at 54.8 indicating neutral momentum and MACD at -10.2 showing bearish pressure. Strong trading volume suggests active interest, but risk remains elevated. Overall, it is a fair candidate for swing trading with cautious entry.
💡 Optimal Entry Price: Around 580 ₹ – 595 ₹ (near 50 DMA support).
🚪 Exit Strategy: If already holding, consider exiting near 630 ₹ – 640 ₹ (resistance at 200 DMA) or place a stop-loss below 570 ₹.
✅ Positive
- Quarterly PAT growth from 45.1 Cr. to 45.6 Cr. shows stability.
- ROCE (14.3%) and ROE (12.1%) reflect moderate capital efficiency.
- Strong trading volume (47 lakh vs. 12 lakh average) indicates high investor activity.
- EPS of 6.60 ₹ provides earnings visibility.
⚠️ Limitation
- High P/E ratio (86.8) compared to industry average (28.7) indicates overvaluation.
- Debt-to-equity ratio of 1.56 raises financial risk.
- MACD at -10.2 signals bearish momentum.
- PEG ratio (-16.6) suggests weak growth prospects relative to valuation.
📉 Company Negative News
- Stock trading below 200 DMA (644 ₹), showing medium-term weakness.
- Current price significantly below 52-week high (790 ₹), reflecting loss of momentum.
📈 Company Positive News
- Quarterly profit variation of 50.1% highlights strong earnings growth trend.
- Institutional holdings slightly increased (FII +0.02%, DII +0.01%), showing marginal support.
- Stock trading near support levels, offering potential for rebound.
🏭 Industry
- Industry PE at 28.7 vs. JBMA PE at 86.8 suggests significant overvaluation compared to peers.
- Auto sector demand remains cyclical, influenced by economic growth and EV adoption trends.
🔎 Conclusion
JBM Auto is fundamentally moderate but technically weak with stretched valuations and high debt. Swing traders may enter near 580 ₹ – 595 ₹ with a target around 630 ₹ – 640 ₹. Stop-loss below 570 ₹ is recommended. The stock offers limited swing trade potential with a rating of 3.4.