Delhi-based auto component maker JBM Auto shares are one of the multibagger stocks that have managed to deliver solid returns to its shareholders in recent years. In the last three years, this midcap stock has given 1,490% return to its positional shareholders, from ₹47.5 on March 20, 2020, to ₹757.75 at the close of trade on April 13, 2023. This means, if any investor had invested ₹1 lakh in JBM Auto shares three years ago, the amount would have become nearly ₹16 lakh today.
In the last ten years, this multibagger stock has zoomed from ₹6 to ₹758 apiece levels, giving a whopping return of over 12,500% during this period. The stock has rallied 330% in the last five years, while it surged 30% in one year period. The counter has given consistent returns throughout the year by rising 82% in six months, 25% in a month, and 8% in a week. In the calendar year 2023, the stock has gained 45%.
On Thursday, JBM Auto share price opened 0.9% higher at ₹751.85 against the previous closing price of ₹744.75 on the BSE. During the session, the stock gained as much as 2.3% to hit an intraday high of 761.80. The counter finally settled day’s trade at ₹757.75, up 1.75% on the BSE, with a market capitalistion of ₹8,960 crore.
At the current price levels, JBM Auto shares trade 1.4% lower than its all-time high levels of ₹768.40 touched on April 11, 2023, while it has more than doubled against its 52-week low of ₹361.70 hit on September 28, 2022.
For the December quarter of 2022 (Q3 FY23), JBM Auto, the flagship company of the JMB Group, posted net profit of ₹34.33 crore, up 3.8% against ₹33.07 crore in the same period last year. The total income jumped 15.9% to ₹962.12 crore as compared to ₹829.88 crore during the period ended December 31, 2021. The company has reported earnings per share (EPS) of ₹2.92 for the period ended December 31, 2022, as compared to ₹2.80 in the corresponding period last year.
For the 9 months period ended December 31, 2022, the net profit stood at ₹96.32 crore compared with ₹70.56 crore in the year ago period, registering a YoY growth of 36.5%. The total revenue increased by 34.5% to ₹2,871.64 crore during the 9 months period ended December 31, 2022, against ₹2,136.81 crore in the same period last fiscal.
JBM Auto has declared 16 dividends since August 14, 2006. In the past 12 months, it has declared an equity dividend amounting to ₹1 per share, as per Trendlyne data. At the current price level, the dividend yield stood at 0.13%.
Established in 1996, JBM Auto manufactures sheet metal components, assemblies and sub-assemblies, tools, dies and moulds. It is primarily a Tier-1 supplier of key systems and assemblies to the automotive original equipment manufacturing (OEM) industry and caters services to major clients that include Ashok Leyland, Bajaj, Daimler, Fiat Chrysler, Ford, Honda, Hero, JCB, Mahindra, Maruti Suzuki, Renault, Nissan, TATA, Toyota, TVS, Volvo Eicher and Volkswagen. In the last three years, the company has saw significant improvement in revenues from its OEM bus division as it received orders from multiple municipal corporation transport divisions to supply buses. The company is reportedly planning to deploy 5,000 electric buses across the country by the end of the financial year 2023-2024 and plans to invest ₹500 crore on capacity building and improving technology.
Note: Investors are advised to not make investment decisions solely based on the past performance of a stock. One should always conduct due diligence before investing in the stock.
