JBM Auto, along with its subsidiaries, has received a significant boost as it clinched orders to supply approximately 5,000 electric buses. These orders come from various State Transport Undertakings (STUs) in states such as Gujarat, Haryana, Delhi, Telangana, Orissa, and other Fortune 500 companies and leading corporates across the country. Analysts are confident that JBM Auto will reap substantial benefits from the state government's push towards electric buses.
Following this announcement, the shares of JBM Auto experienced a remarkable surge of 18% on July 14, reaching a 52-week high at Rs 1,548.35. The company confirmed these orders in an official exchange filing. As of 9:21 am, the company's shares were trading at Rs 1,500 on the BSE, reflecting a 14.1% increase.
JBM Auto stated that it would be delivering different types of electric buses, including city buses, staff buses, and tarmac coaches, in both 9-meter and 12-meter categories, as part of these orders. The company boasts a comprehensive range of electric-mobility solutions with its in-house vehicle technology, battery technology, and charging solutions, making it well-positioned as an end-to-end electric mobility solution provider.
Industry analysts anticipate that JBM Auto will be a significant beneficiary of the state government's ongoing transition to electric buses. However, they also note that intensified competition may limit the potential for price increases and margin expansion in the medium term.
JBM Auto currently has a bus manufacturing capacity of 3,000 buses, which is projected to increase to 20,000 buses by the second half of FY24, as highlighted by some analysts. This expansion in manufacturing capacity positions the company to meet the growing demand and further solidify its market presence in the electric-mobility sector.
