JBM Auto Limited (JBMA) AI Stock Analysis

• Market Cap: ₹120.25B
• Dividend Yield: 0.15%
• Average Volume (3M): 343.37K
• Price to Earnings (P/E): 67.3
• Beta (1Y): 1.81
• Revenue Growth: 7.63%
• EPS Growth: 11.25%
• Country: IN
• Employees: 3,351
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 2.33
• Shares Outstanding: 236,494,260
• 10 Day Avg. Volume: 31,825
• 30 Day Avg. Volume: 343,365
• PEG Ratio: 5.48
• Price to Book (P/B): 10.61
• Price to Sales (P/S): 2.62
• P/FCF Ratio: 52.72
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ₹564.00 ▼(-11.92% Downside)
• Action: Reiterated Date: 12/25/25
• Date: Action: Reiterated 12/25/25

The score is driven primarily by solid financial performance—especially improved cash flow and steady growth—offset by an expensive valuation (high P/E, low yield) and mixed technical signals (negative MACD and only partial confirmation versus longer-term averages).

Positive Factors

Revenue Growth Momentum

Consistent year-over-year revenue growth reflects repeat OEM program wins and expanding content per vehicle. A sustained ~9% growth rate supports scale benefits, improves fixed-cost absorption and underpins durable cash generation and reinvestment capacity over the next 2–6 months.

Improving Gross and Operating Margins

Rising gross margin and healthy operating margins indicate better cost management and higher-value product mix (assemblies vs. simple parts). Margin improvement is structural for profitability if sustained through program localization and operational efficiencies.

Cash Generation Turnaround

A positive free cash flow inflection and strong OCF-to-net-income ratio demonstrate improved working-capital control and conversion of earnings into real cash. This durable cash profile supports capex, deleveraging or selective M&A over the medium term.

Negative Factors

Moderate Financial Leverage

A near-2.0 debt/equity level raises interest and refinancing sensitivity versus peers; while manageable today, leverage limits flexibility for aggressive capex or big program ramps and raises risk if OEM volumes dip or commodity costs rise.

Low Net Profit Margin

Net margin under 4% leaves limited buffer against input inflation, warranty or program start-up costs. Modest bottom-line conversion means returns are sensitive to small adverse swings in volumes or pricing, constraining sustained profitability improvement.

OEM & Tender Concentration Risk

Business is contract-based and tied to OEM production cycles and tender outcomes for electric buses. This structural dependency creates revenue cyclicality and execution risk: losing nominations or tender delays can materially reduce volumes and cash flow.

JBM Auto Limited Business Overview & Revenue Model

Company Description

JBM Auto Limited manufactures and sells auto components, tools, and buses in India and internationally. It operates through three segments: Sheet Metal Components, Assemblies & Sub-assemblies (Component Division); Tool, Dies & Moulds (Tool Room Division); and OEM Division. The company offers auto components, systems, and assemblies, such as BIW parts, including cross car beams; chassis and suspension systems comprising skin panels; and tools and dies for turnkey projects. It also designs, develops, manufactures, assembles, and sells CNG, diesel, and electric buses, as well as related parts, accessories, and maintenance contracts. The company was incorporated in 1996 and is based in Gurugram, India.

How the Company Makes Money

JBMA generates revenue through multiple streams, including the production and sale of automotive components to Original Equipment Manufacturers (OEMs) and aftermarket suppliers. The company also earns income from the design and manufacture of electric buses, tapping into the growing demand for eco-friendly public transportation. Additionally, JBMA leverages strategic partnerships with key automotive manufacturers to enhance its market reach and product offerings. The company's commitment to research and development further positions it to capitalize on emerging trends in the automotive industry, thereby contributing to its overall profitability.

JBM Auto Limited Financial Statement Overview

Summary

Strong revenue growth (9.17% from 2024 to 2025) with improving gross margin (32.26%) and solid EBITDA/EBIT margins. Cash generation is a key positive, with free cash flow turning positive in 2025 and strong operating cash flow to net income (1.95). Balance sheet is stable but leverage is moderate (debt-to-equity 1.95) and profitability remains modest (net margin 3.69%, ROE 14.95%).

Income Statement

JBM Auto Limited shows strong revenue growth with a consistent upward trajectory over the years. Notably, the revenue grew by 9.17% from 2024 to 2025. The gross profit margin has improved, reaching 32.26% in 2025, indicating efficient cost management. Net profit margin also shows a positive trend, though it remains modest at 3.69%, suggesting room for improvement in profitability. EBIT and EBITDA margins are healthy, reflecting solid operational performance.

Balance Sheet

The balance sheet reflects a robust equity base with stockholders' equity increasing steadily, resulting in a favorable equity ratio of 23.09% as of 2025. The debt-to-equity ratio of 1.95 indicates moderate leverage, which is manageable but worth monitoring. Return on equity is relatively low at 14.95%, suggesting that the company could enhance shareholder returns through more efficient use of equity.

Cash Flow

The cash flow statement shows significant improvement, with the free cash flow turning positive in 2025 and growing substantially from the previous year. The operating cash flow to net income ratio is strong at 1.95, indicating effective cash generation from operations. The free cash flow to net income ratio also improved, highlighting better cash management and potential for reinvestment or debt reduction.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	55.85B	54.76B	50.13B	38.58B	31.94B	19.82B
Gross Profit	17.50B	17.07B	14.03B	10.86B	8.69B	5.70B
EBITDA	6.81B	6.80B	5.85B	4.03B	3.57B	2.13B
Net Income	2.05B	2.02B	1.79B	1.24B	1.56B	493.00M
Balance Sheet
Total Assets	0.00	58.50B	48.65B	35.38B	32.29B	24.64B
Cash, Cash Equivalents and Short-Term Investments	2.49B	1.94B	666.83M	445.13M	343.56M	180.44M
Total Debt	0.00	26.30B	21.27B	17.03B	13.88B	8.45B
Total Liabilities	-13.86B	44.63B	36.73B	25.07B	23.32B	17.18B
Stockholders Equity	13.86B	13.51B	11.68B	10.30B	8.96B	7.46B
Cash Flow
Free Cash Flow	0.00	2.72B	-228.08M	-1.43B	-4.12B	-1.33B
Operating Cash Flow	0.00	3.94B	2.05B	4.84B	-1.42B	2.16B
Investing Cash Flow	0.00	-5.56B	-4.43B	-6.46B	-2.95B	-3.63B
Financing Cash Flow	0.00	2.24B	2.48B	1.59B	4.54B	1.40B

JBM Auto Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 640.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:JBMA, the sentiment is Negative. The current price of 640.35 is above the 20-day moving average (MA) of 576.73, above the 50-day MA of 588.08, and above the 200-day MA of 636.80, indicating a bearish trend. The MACD of -10.70 indicates Positive momentum. The RSI at 31.56 is Neutral, neither overbought nor oversold. The STOCH value of 20.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:JBMA.

JBM Auto Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHRIPISTON	73 Outperform	₹130.81B	28.99	―	0.31%	14.43%	15.60%
MINDACORP	69 Neutral	₹129.33B	39.41	―	0.23%	12.99%	2.43%
LUMAXTECH	66 Neutral	₹113.92B	31.91	―	0.35%	36.70%	36.24%
JBMA	64 Neutral	₹120.25B	67.30	―	0.15%	7.63%	11.25%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SUPRAJIT	54 Neutral	₹59.20B	126.88	―	0.63%	14.20%	16.80%

JBM Auto Limited Corporate Events

JBM Auto Corrects EPS Error in September 2025 Quarter XBRL Filing

JBM Auto Limited has clarified a discrepancy in its reported consolidated earnings per share (EPS) for the quarter ended 30 September 2025, following a query from the National Stock Exchange regarding its financial results filing. The company stated that while the correct consolidated EPS of Rs 2.23 was accurately disclosed in the PDF version of the results, an inadvertent typographical error in the XBRL submission had shown the EPS figure of Rs 5.67, which pertained to the period ended 31 March 2025. JBM Auto has now submitted revised consolidated XBRL financial results reflecting the correct EPS and emphasized its commitment to full compliance with SEBI regulations and higher diligence in future regulatory filings, aiming to reassure investors and regulators about its governance and reporting standards.

JBM Auto Says Share Volume Surge is Market-Driven, Affirms Full Disclosure Compliance

JBM Auto Limited has clarified that the recent significant increase in trading volumes of its shares is purely market driven and attributable to prevailing market conditions. Responding to a query from the stock exchange, the company stated that it has made all required disclosures under applicable securities regulations, has not withheld any material or price-sensitive information, and remains fully compliant in communicating all significant events to the exchanges, implying no undisclosed corporate developments behind the spike in volumes.