Small-cap scrip JBM Auto twinkles like a star

JBM Auto, on July 20 has surged by more than 17 per cent on an intraday basis. The stock which previously closed at Rs 131.35;  at 2.33 pm on Wednesday is trading at Rs 154.50, up by 17.62 per cent. The stocks in the last 5 days have surged by more than 16 per cent, majorly gaining on July 20. The stocks' 52-week High/Low stands at Rs 157.60/135.

The major reason company’s scrip has surged is the company’s latest expansion plan. On July 19, post market hours, the company informed the bourses that it plans to invest Rs 300 crore for developing and manufacturing electric as well as hybrid buses in India through its joint venture with Poland's Solaris Bus and Coach. This JV will introduce the globally proven European technology for electric vehicles, which is sustainable and affordable, and is a newbie in India.

JBM Auto has reported a consolidated total income from operations of Rs 422.11 crore and a net profit of Rs 11.07 crore for Q4FY16. The company's top line has increased by 13 per cent in Q4FY16 as compared to Q4FY15. However, net profit has declined by 51 per cent; but has increased by 17 per cent as compared to the adjacent Q3FY16.

JBM Auto Ltd., is an Indian company belonging to the JBM group, engaged in the business of manufacturing of tools, dyes and moulds. The company also manufactures sheet metal components and welded sub-assemblies for the automobile industry. The company’s operating business segment consists of sheet metal division, tool room division,and others.