JBM Auto share price spurts 17% in 2 days on heavy volumes, exchanges seek clarification – brokerage sees 33% upside

JBM Auto share price spurted nearly 17 per cent in the last two sessions on the back of heavy volumes. The auto manufacturing company's stock on Tuesday gained over 7 per cent to touch a day’s high level of 481.55 per share on the BSE intraday during Tuesday’s trading session.

As per the exchange data, the stock traded at a volume of 874K shares on Monday, which is over 1,400 per cent higher as compared to the 10-day average volume of 56.7K shares. Similarly, it traded at a volume of 14,63,608 shares on NSE and 1,55,060 shares on BSE on Tuesday.

Amid the volume outburst, the exchanges – NSE, BSE – have sought an explanation from JBM Auto. “Significant increase in volume has been observed in JBM Auto Limited. The Exchange, in order to ensure that investors have the latest relevant information about the company and to inform the marketplace so that the interest of the investors is safeguarded, had written to the company.”

In its response, JBM Auto said, “The company has made all the necessary disclosure pursuant to Securities and Exchange Board of India norms and has not withheld any material/price sensitive information that in our opinion would have bearing on the volume behaviour of the scrip.”

Meanwhile, Abhishek Jain, VP – Research, Dolat Capital has maintained a positive view on JBM Auto led by a strong upcycle for PVs (Passenger Vehicles) for the next two years; encouraging revenue potential in the tooling business and increasing economies of scale in the bus division.

The brokerage continues to maintain BUY with a target of Rs 643 per share, implying a nearly 33 per cent upside. It values JBM Auto at 15x of FY25E EBITDA to EVs bus division and 10x components & tooling business.

Shares of JBM Auto have outperformed the markets in the last five sessions, one month, and in one year period as it surged around 15 per cent, 9 per cent, and 22 per cent, respectively, on the exchanges.