NSEI:JBMA

Stock Analysis Report

Executive Summary

JBM Auto Limited manufactures and sells auto components, tools, and buses in India and internationally.

Rewards

Trading at 15.6% below its fair value

Earnings are forecast to grow 30.5% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


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Share Price & News

How has JBM Auto's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JBMA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.4%

JBMA

-1.4%

IN Auto Components

-1.5%

IN Market


1 Year Return

-9.7%

JBMA

-4.3%

IN Auto Components

10.7%

IN Market

Return vs Industry: JBMA underperformed the Indian Auto Components industry which returned -4.3% over the past year.

Return vs Market: JBMA underperformed the Indian Market which returned 10.7% over the past year.


Shareholder returns

JBMAIndustryMarket
7 Day-3.4%-1.4%-1.5%
30 Day-15.1%-6.1%-2.7%
90 Day2.5%2.5%1.3%
1 Year-8.3%-9.7%-3.3%-4.3%12.7%10.7%
3 Year-11.9%-14.2%-4.1%-6.2%22.0%15.1%
5 Year12.1%6.5%5.5%1.7%34.5%22.0%

Price Volatility Vs. Market

How volatile is JBM Auto's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is JBM Auto undervalued compared to its fair value and its price relative to the market?

15.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JBMA (₹229.65) is trading below our estimate of fair value (₹272.22)

Significantly Below Fair Value: JBMA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: JBMA is good value based on its PE Ratio (13.4x) compared to the Auto Components industry average (17.4x).

PE vs Market: JBMA is poor value based on its PE Ratio (13.4x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: JBMA is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: JBMA is overvalued based on its PB Ratio (1.8x) compared to the IN Auto Components industry average (1.4x).


Next Steps

Future Growth

How is JBM Auto forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

30.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JBMA's forecast earnings growth (30.5% per year) is above the savings rate (6.5%).

Earnings vs Market: JBMA's earnings (30.5% per year) are forecast to grow faster than the Indian market (20.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: JBMA's revenue (18.2% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: JBMA's revenue (18.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JBMA's Return on Equity is forecast to be low in 3 years time (19%).


Next Steps

Past Performance

How has JBM Auto performed over the past 5 years?

3.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JBMA has high quality earnings.

Growing Profit Margin: JBMA's current net profit margins (4.2%) are lower than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: JBMA's earnings have grown by 3.1% per year over the past 5 years.

Accelerating Growth: JBMA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: JBMA had negative earnings growth (-12.3%) over the past year, making it difficult to compare to the Auto Components industry average (-19.6%).


Return on Equity

High ROE: JBMA's Return on Equity (12.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is JBM Auto's financial position?


Financial Position Analysis

Short Term Liabilities: JBMA's short term assets (₹7.5B) exceed its short term liabilities (₹7.4B).

Long Term Liabilities: JBMA's short term assets (₹7.5B) exceed its long term liabilities (₹2.3B).


Debt to Equity History and Analysis

Debt Level: JBMA's debt to equity ratio (91.1%) is considered high.

Reducing Debt: JBMA's debt to equity ratio has reduced from 101.5% to 91.1% over the past 5 years.

Debt Coverage: JBMA's debt is well covered by operating cash flow (21.7%).

Interest Coverage: JBMA's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet

Inventory Level: JBMA has a high level of physical assets or inventory.

Debt Coverage by Assets: JBMA's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is JBM Auto's current dividend yield, its reliability and sustainability?

0.98%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%0.6%markettop25%2.6%industryaverage1.0%forecastin3Years1.2%

Current dividend yield vs market & industry

Notable Dividend: JBMA's dividend (0.98%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: JBMA's dividend (0.98%) is low compared to the top 25% of dividend payers in the Indian market (2.58%).


Stability and Growth of Payments

Stable Dividend: JBMA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: JBMA's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.2%), JBMA's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JBMA's dividends in 3 years are forecast to be thoroughly covered by earnings (9.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average board tenure


CEO

Sandip Sanyal 0

0

Mr. Sandip Sanyal has been a Whole-Time Director at JBM Auto Limited since May 18, 2015. 


Board Members

NamePositionTenureCompensationOwnership
Sandip Sanyal
Whole-Time Executive Director0yrsno datano data
Surendra Arya
Non-Executive Chairman0yrs₹40.00k0.86% 92.9m
Mahesh Aggarwal
Independent Non-Executive Director20.1yrs₹40.00kno data
Nishant Arya
Non-Executive Director10.6yrs₹20.00k0.72% 77.2m
Pravin Tripathi
Independent Director2.4yrs₹40.00kno data
Praveen Tripathi
Non-Executive Independent Director0.6yrsno datano data

4.8yrs

Average Tenure

66yo

Average Age

Experienced Board: JBMA's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

JBM Auto Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: JBM Auto Limited
  • Ticker: JBMA
  • Exchange: NSEI
  • Founded: 1996
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: ₹10.760b
  • Shares outstanding: 47.30m
  • Website: https://www.jbmgroup.com/JBM-Auto-Ltd.php

Number of Employees


Location

  • JBM Auto Limited
  • Plot No. 9
  • Institutional Area
  • Gurugram
  • Haryana
  • 122003
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532605BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2004
JBMANSEI (National Stock Exchange of India)YesEquity SharesININRDec 2004

Biography

JBM Auto Limited manufactures and sells auto components, tools, and buses in India and internationally. It operates through Sheet Metal Components, Assemblies & Sub-assemblies; Tool, Dies & Moulds; and OEM Division segments. The company offers chassis and suspension systems, such as axles, twist beams, lower control arms, sub-frames, exhaust systems, air and fuel tanks, complete cowl assemblies, and pedal boxes; skin panels, including doors, roofs, rear and front panels, and bumpers; and BIW parts and assemblies comprising floor and upper body parts, roof headers, cross car and truck beams, oil pan assemblies, and others, as well as 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 12:57
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.