JBMA - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.4

📉 JBMA shows improving earnings but faces valuation and volume headwinds.

🎯 Optimal Entry Price: ₹630–₹640

🚪 Exit Target (if already holding): ₹675–₹690

🔍 Positive

• 📈 Quarterly PAT growth of 48.2% (₹45.1 Cr vs ₹32.1 Cr) indicates strong earnings momentum.
• 📊 MACD at -2.37 suggests bearish momentum may be slowing.
• 📉 RSI at 44.1 is neutral, allowing room for upside movement.
• 📈 EPS of ₹6.21 and ROCE of 14.3% reflect decent operational efficiency.

⚠️ Limitation

• 📉 P/E of 104 is significantly above industry average (32.8), indicating overvaluation.
• 📉 PEG ratio of -20.0 suggests poor growth-adjusted valuation.
• 📉 Volume far below weekly average (1.77L vs 5.25L), showing weak trader interest.
• 📉 Price below both 50 DMA and 200 DMA, indicating bearish technical trend.
• 📉 Debt-to-equity ratio of 1.56 is relatively high, increasing financial risk.

📉 Company Negative News

• 📉 Decline in FII and DII holdings (-0.40% and -0.01%) reflects reduced institutional confidence.
• 📉 High valuation metrics raise concerns about sustainability of current price levels.

📈 Company Positive News

• 🚍 JBM Auto secured a $100M investment from IFC to expand its electric bus operations.
• 🏭 Operates one of the largest integrated electric bus manufacturing facilities outside China.
• 📈 Positive sentiment from recent rally (13% gain post-investment news) may support short-term upside.

🚗 Industry

• 🚗 Auto sector is transitioning toward EVs, offering long-term growth opportunities.
• 📉 High competition and capital intensity in EV manufacturing may pressure margins.

✅ Conclusion

• 📉 JBMA is moderately suitable for swing trading due to improving earnings and EV sector tailwinds.
• 🎯 Entry near ₹630–₹640 with exit around ₹675–₹690 is recommended for short-term traders.
• 📊 Long-term investors should monitor debt levels and valuation metrics before increasing exposure.

I can also evaluate Olectra Greentech or Tata Motors to help you compare EV sector swing setups.