1703 per cent return: This mutlibagger auto stock rallies over 11 per cent as company bags huge order for 5000 buses!
The stock has witnessed significant buying activity as it has given multibagger rturns of more than 273 per cent in just 1 year.
On Friday, during the morning trading session both Sensex and Nifty initiated on a positive note, opening higher by 0.25 per cent each. As the day progressed, the Sensex witnessed a significant surge of 0.77 per cent, reaching a remarkable milestone by establishing a new all-time high at the 66,159 level. Correspondingly, the Nifty also achieved a noteworthy feat, attaining an all-time high at the 19,595 level.
These milestones reflect the continued upward momentum and noteworthy performance of the stock market indices.
In this optimistic market sentiment, the shares of JBM Auto Limited surged 11.57 per cent, the stock hits fresh 52-week high of Rs 1548.35 per share on BSE. Additionally, the scrip witnessed a massive spurt in volume by more than 1.27 times. This indicates heavy buying among investors. The company's current market capitalization is Rs 17,349.22 crore.
This surge was driven by the news that the company, along with its subsidiaries, secured orders for around 5,000 electric buses. These buses will be supplied to various State Transport Undertakings (STUs) in Gujarat, Haryana, Delhi, Telangana, Orissa, and other states, as well as multiple Fortune 500 companies and leading corporates in India.
The orders cover different types of buses, such as city buses, staff buses, and tarmac coaches, with varying lengths of 9 meters and 12 meters. This expansion in their electric bus production is expected to be significant, with the current manufacturing capacity of 3,000 buses set to increase to 20,000 buses by the second half of FY24.
JBM Auto aims to strengthen its position as a comprehensive provider of electric mobility solutions. They have developed their own vehicle technology, battery technology, and charging solutions. The company plans to capitalize on the growing demand for electric mobility solutions and expand its market share.
In recent developments, the company acquired 0.49 per cent equity shares in its subsidiary, Ecolife Green One Mobility Private Limited, making Ecolife a wholly-owned subsidiary.
Additionally, JBM Auto transferred 15 per cent equity shares of JBM Electric Vehicles Private Limited to Nishant Arya, an individual promoter of the company, reducing their shareholding to 85 per cent. As a result, JBM Electric Vehicles Private Limited has become a subsidiary of JBM Auto.
Overall, JBM Auto is positioning itself for significant growth in the electric-mobility domain, leveraging its technology and market access to cater to the increasing demand for electric buses and other sustainable transport solutions.
JBM Auto Ltd manufactures and sells sheet metal components, tools, dies & moulds, buses, spare parts, accessories & bus maintenance contracts.
DSIJ offers a service 'multibagger Pick" with recommendations for multibagger stocks based on research and analysis to help subscribers make informed investment decisions. If this interests you, then do download the service details pdf here
The stock has witnessed significant buying activity as it has given multibagger rturns of more than 273 per cent in just 1 year moreover the stock has zoomed 1702 per cent in the past 3 years.