Recommendation from Auto Ancillaries and Cables Sector

This section gives you some of the momentum stocks which are in buzz for past few days and are expected to give quick returns in a 15-day horizon.

JBM AUTO LTD
CMP - ₹1,896.75
BSE CODE 532605
Volume 30,646
Face Value ₹2
Target ₹2,075 - ₹2,115
Stoploss ₹1,825 (CLS)

The company operates in the automotive industry, with business segments comprising auto components, buses and electric vehicles, renewables, EV aggregates, and EV charging infrastructure. Looking at the financial performance of the company on a consolidated basis, it showcased an impressive growth of 41.25 per cent from ₹953.05 crore in Q3FY23, reporting a total revenue of ₹1,346.17 crore in Q3FY24. The net profit also witnessed a significant rise of 56.11 per cent, reaching ₹49.47 crore, compared to ₹31.69 crore in the corresponding quarter of the last year. Recently, a subsidiary of the company has been awarded the tender as a bus operator for the procurement, supply, operation, and maintenance of 1,390 electric buses, along with the development of allied electric and civil infrastructure, with an order value totalling ₹7,500 crore. Shares have climbed over 210 per cent in the last year, and with the consideration of the 52-week high of ₹2,417 on the BSE, they exhibit potential for further growth. Hence, we recommend BUY

KEI Industries Ltd
CMP - ₹3,301.25
BSE CODE 517569
Volume 5,107
Face Value ₹2
Target ₹3,570 - ₹3,635
Stoploss ₹3,150(CLS)

The company manufactures wires and cables such as EHV cables, HT cables, and LT cables, selling them both in India and overseas. It caters to both retail and institutional markets and also provides Engineering, Procurement, and Construction (EPC) services. When assessing the financial performance of the company on a consolidated basis, there was a notable revenue growth of 15.55 per cent, gaining from ₹1,784.32 crore in Q3FY23 to report a total revenue of ₹2,061.72 crore in Q3FY24. The net profit also experienced a considerable gain of 17.16 per cent, reaching ₹150.67 crore, as compared to ₹128.60 crore in the corresponding quarter of the previous year. The company has maintained a consistent record of dividend payouts and recently announced a dividend of ₹3.5 per share, each having a face value of ₹2. Over the past year, the shares have yielded a remarkable 100 per cent return for investors. Therefore, in light of the future growth potential, we recommend BUY.