JBM Auto is an A /T+1 group Auto Components & Equipments manufacturing company. JBM Group is a $2.6bn global conglomerate with operations in more than 25 locations across 10 countries throughout the world. They are amongst the world’s leading manufacturers of key auto systems, electric vehicles and buses. The company is in transformation change by spreading their leadership in different and futuristic segments such as Auto Components & Systems, EV ecosystem, Electric Vehicles & Buses, EV Aggregates, Charging Infrastructure, Renewable Energy, Environment Management Solutions and Artificial Intelligence. Under its Auto Components and Systems division company manufactures key auto systems & high-level assemblies serving global customers which includes Ashok Leyland, Daimler, Nissan, Renault, FCA, Skoda, Toyota, PSA, ISUZU, Volvo, TMTL, Volkwagen, Escorts Kubota, Tata Motors, MG, Honda, Force motors, SML ISUZU, VE commercial vehicles, Mahindra etc. Company’s Tool Room division’s annual capacity now stands at 800 large dies per annum, which can be considered as India’s largest tooling business. Company has added 5 new customers, comprising of large OEM’s and Tier 1’s under its Tooling division and it has also achieved a milestone of successfully developing more than 50 parts (~200 dies) of 980 MPa making it the only company to achieve this milestone. Under Ev business company has been a pioneer in building a comprehensive and intelligent EV ecosystem that seamlessly integrates electric vehicles, battery technology, power infrastructure, fast charging infrastructure, and power electronics with an expertise in customizing them based on various geographies across the globe. Its buses are currently deployed across Gujarat, Maharashtra, Karnataka, Delhi, Uttar Pradesh, Andaman and Nicobar, Goa, Telangana, etc. under the FAME scheme, amongst other customers.  With over 1000 JBM electric buses plying in over 12 states across India, the company has clocked 50+ million e-kms and served over 100 million passengers till date.

Fundamentals (FY22-23):

Financial Results:

Company’s Net Sales was Rs 946.22 crore in June 2023 up 9.39%, Quarterly Net Profit at Rs. 30.18 crore in June 2023 up 16.93% and EBITDA stands at Rs. 119.28 crore in June 2023 up 35.33% as compared to June 2022. Company’s EPS has increased to Rs. 2.56 in June 2023 from Rs. 2.18 in June 2022.

Key Points:

1. JBM auto and its subsidiaries recently bagged supply orders for approximately 5,000 electric buses from various STUs of Gujarat, Haryana, Delhi, Telangana, Orissa among others and multiple Fortune 500 companies coupled with leading corporates of the country.
2. As per reports JBM Auto is the leading contender to acquire a controlling stake in SML Isuzu, the Chandigarh-headquartered commercial vehicle maker whose promoters include the Japan-based Sumitomo Corporation and Isuzu Motors.
3. Company’s Chakan facility achieved the flawless launch of Tata Motors Ltd. - Punch & M&M XUV 700 as they supplied many important auto components to the respective OEMs.
4. Company has one of the largest integrated EV Bus manufacturing facility of Asia (Outside China) which is Spread over 80 acres and having a highly automated state-of-the-art capacity of manufacturing 10,000 buses dedicated for Electric mobility.
5. Jay Bharat Maruti Auto (JBM) has lined up an investment outlay of Rs 800 crore during the current Calendar Year (CY). Out of the total amount, nearly Rs 500 crore will be spent on capacity expansion, product development and so on and Rs 300 crore towards scaling up its operations in the battery manufacturing plant at Manesar.
6. JBM Auto recently launched India’s first completely designed and manufactured 100% electric luxury coach, the JBM GALAXY at the Auto Expo 2023.
7. JBM Group has developed state's first waste-to-energy (WTE) project in Murthal, Sonepat. It is India's first integrated WTE project under the public private partnership (PPP) model. JBM Enviro's WTE plant has a power generation capacity of 8 MW and can process up to 750 tonnes of solid waste generated daily from the Sonepat-Panipat cluster.
8. Company’s EV charging solutions business has installed capacity of 20 MW+ for 500 EVs and plans to deploy 500MW+ in next 3 years by adding 1500+ charging sites all over India which will be supporting charging for 10000+ vehicles.
9. The company has bagged an order for 200 electric buses from Delhi Transport Corporation (DTC) under the central government's FAME II electric vehicle policy in 2021.
10. It has also received orders for the supply of 500 buses which comprises of BS VI CNG buses for Delhi Integrated Multi-Modal Transit System Limited (DIMTS) and electric buses for Bengaluru Metropolitan Transport Corporation (BMTC), electric buses for Jhansi - smart City, Uttar Pradesh, and for multiple corporate clients in 2021.
11. It has also bagged order for supplying 1,781 e-buses in three states under tender floated by Convergence Energy Services Ltd (CESL).
12. The company is also planning to enter into electric bus markets of Jammu & Kashmir, Ladakh, Haryana, Himachal Pradesh, Chandigarh and Punjab with its new product portfolio of e-mobility.

In last 3 Years the stock gave a stellar return of 1,486.73% as compared to the rise of Sensex and Nifty in the same period.

Electric vehicles are in growth stage and are estimated to constitute nearly 50 % of total bus sales in India by the financial year 2026-27. Around 90,000 buses are sold annually in India with an expected growth of 5 to 10 %. The sale of buses in India is estimated to be close to 100,000 in FY2027. Around 50 per cent of this, or close to 50,000 electric buses are estimated to be sold in FY 2027 and JBM Group targets to enhance its annual production capacity to 20,000 buses by FY 2027. The company has a manufacturing capacity of 3,000 buses which is expected to increase to 20,000 by the second half of FY24. Recently, Rs. 57,613 crores have been Allocated by the government for PM-eBus Sewa to deploy 10,000 e-buses in 169 cities and Infrastructure will be upgraded in 181 cities under the green urban mobility initiative. Considering the ambitious plans announced by the company, strong customer base in all divisions, increasing adaptability of EV buses by state governments backed by Government’s Make in India theme and incentives, strong financial position and order book, investors can invest this company with a buy in dips strategy for long term period for higher returns in upcoming years.  

 - HET ZAVERI

info@smartinvestment.in

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