JBM Auto (NSEI:JBMA) - Share price, News & Analysis

Q: What is the Fair Price of JBMA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

JBMA (₹421.7) is trading above our estimate of [[fair value]] (₹117.53)

JBMA fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	6/6
Past Performance	4/6
Financial Health	2/6
Dividends	2/6

JBMA Stock Overview

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

Rewards

Earnings are forecast to grow 29% per year

Earnings grew by 216.8% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

JBM Auto Competitors

Suprajit Engineering

BSE:532509

₹45.4b

Minda

NSEI:MINDACORP

₹44.1b

Sansera Engineering

NSEI:SANSERA

₹34.7b

Sundaram-Clayton

BSE:520056

₹83.4b

Price History & Performance

Summary of all time highs, changes and price drops for JBM Auto
Historical stock prices
Current Share Price	₹421.70
52 Week High	₹674.80
52 Week Low	₹169.94
Beta	1.07
1 Month Change	-7.81%
3 Month Change	-4.45%
1 Year Change	136.64%
3 Year Change	362.59%
5 Year Change	280.32%
Change since IPO	3,150.10%

Recent News & Updates

Jun 11

I Ran A Stock Scan For Earnings Growth And JBM Auto (NSE:JBMA) Passed With Ease

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

May 04

JBM Auto (NSE:JBMA) Has A Somewhat Strained Balance Sheet

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

	JBMA	IN Auto Components	IN Market
7D	13.9%	4.7%	2.3%
1Y	136.6%	-7.9%	-0.9%

Return vs Industry: JBMA exceeded the Indian Auto Components industry which returned -7.9% over the past year.

Return vs Market: JBMA exceeded the Indian Market which returned -0.9% over the past year.

Price Volatility

Is JBMA's price volatile compared to industry and market?
JBMA volatility
JBMA Average Weekly Movement	7.4%
Auto Components Industry Average Movement	6.2%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.9%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: JBMA is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: JBMA's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1996	1,981	Nishant Arya	https://www.jbm-group.com/JBM-Auto-Ltd.php

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.

JBM Auto Fundamentals Summary

How do JBM Auto's earnings and revenue compare to its market cap?
JBMA fundamental statistics
Market Cap	₹49.87b
Earnings (TTM)	₹1.56b
Revenue (TTM)	₹31.93b

31.9x

P/E Ratio

1.6x

P/S Ratio

Is JBMA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
JBMA income statement (TTM)
Revenue	₹31.93b
Cost of Revenue	₹22.85b
Gross Profit	₹9.08b
Other Expenses	₹7.52b
Earnings	₹1.56b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	13.21
Gross Margin	28.43%
Net Profit Margin	4.89%
Debt/Equity Ratio	153.0%

How did JBMA perform over the long term?

See historical performance and comparison

Dividends

0.2%

Current Dividend Yield

8%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is JBMA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for JBMA?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for JBMA. This is calculated by dividing JBMA's market cap by their current preferred multiple.
What is JBMA's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹49.87b

JBMA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2x
Enterprise Value/EBITDA	17.4x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does JBMA's PE Ratio compare to its peers?

JBMA PE Ratio vs Peers

The above table shows the PE ratio for JBMA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	24x
532509 Suprajit Engineering	26.2x	19.7%	₹45.4b
MINDACORP Minda	23.8x	21.8%	₹44.1b
SANSERA Sansera Engineering	26.8x	33.6%	₹34.7b
520056 Sundaram-Clayton	18.9x	n/a	₹83.4b
JBMA JBM Auto	31.9x	29.0%	₹49.9b

Forward PE

Price-To-Earnings vs Peers: JBMA is expensive based on its Price-To-Earnings Ratio (31.9x) compared to the peer average (24x).

Price to Earnings Ratio vs Industry

How does JBMA's PE Ratio compare vs other companies in the IN Auto Components Industry?

Price-To-Earnings vs Industry: JBMA is expensive based on its Price-To-Earnings Ratio (31.9x) compared to the Indian Auto Components industry average (21.9x)

Price to Earnings Ratio vs Fair Ratio

What is JBMA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

JBMA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	31.9x
Fair PE Ratio	37.4x

Price-To-Earnings vs Fair Ratio: JBMA is good value based on its Price-To-Earnings Ratio (31.9x) compared to the estimated Fair Price-To-Earnings Ratio (37.4x).

Share Price vs Fair Value

What is the Fair Price of JBMA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: JBMA (₹421.7) is trading above our estimate of fair value (₹117.53)

Significantly Below Fair Value: JBMA is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: JBMA is poor value based on its PEG Ratio (1.1x)

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Future Growth

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

Future Growth Score

6/6

Future Growth Score 6/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

29.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: JBMA's forecast earnings growth (29% per year) is above the savings rate (6.7%).

Earnings vs Market: JBMA's earnings (29% per year) are forecast to grow faster than the Indian market (17.4% per year).

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

Revenue vs Market: JBMA's revenue (25.3% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: JBMA's revenue (25.3% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: JBMA's Return on Equity is forecast to be high in 3 years time (23.2%)

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Past Performance

How has JBM Auto performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

6.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: JBMA has a high level of non-cash earnings.

Growing Profit Margin: JBMA's current net profit margins (4.9%) are higher than last year (2.5%).

Past Earnings Growth Analysis

Earnings Trend: JBMA's earnings have grown by 6.5% per year over the past 5 years.

Accelerating Growth: JBMA's earnings growth over the past year (216.8%) exceeds its 5-year average (6.5% per year).

Earnings vs Industry: JBMA earnings growth over the past year (216.8%) exceeded the Auto Components industry 33.8%.

Return on Equity

High ROE: JBMA's Return on Equity (17.4%) is considered low.

Discover strong past performing companies

Financial Health

How is JBM Auto's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: JBMA's short term assets (₹17.0B) do not cover its short term liabilities (₹17.2B).

Long Term Liabilities: JBMA's short term assets (₹17.0B) exceed its long term liabilities (₹6.1B).

Debt to Equity History and Analysis

Debt Level: JBMA's net debt to equity ratio (149.1%) is considered high.

Reducing Debt: JBMA's debt to equity ratio has increased from 124.1% to 153% over the past 5 years.

Debt Coverage: JBMA's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: JBMA's interest payments on its debt are well covered by EBIT (3.6x coverage).

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.24%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: JBMA's dividend (0.24%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.43%).

High Dividend: JBMA's dividend (0.24%) is low compared to the top 25% of dividend payers in the Indian market (1.89%).

Stability and Growth of Payments

Stable Dividend: JBMA's dividend payments have been volatile in the past 10 years.

Growing Dividend: JBMA's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (7.6%), JBMA's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: JBMA is paying a dividend but the company has no free cash flows.

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Management

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

1.1yrs

Average management tenure

CEO

Nishant Arya (35 yo)

1.08yrs

Tenure

₹165,000

Compensation

Mr. Nishant Arya serves as Managing Director and Vice Chairman of JBM Auto Limited since May 18, 2021. He serves as Chairman at Tesco Go S.p. A, Europe. Mr. Arya serves as an Executive Director at JBM Grou...

Leadership Team

Experienced Management: JBMA's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.

Board Members

Experienced Board: JBMA's board of directors are considered experienced (7.1 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31