Risk factor
Modest price volatility
Profitability factor
Greatly overvalued vs peers
About
JBM Auto Limited, founded in 1996 and headquartered in Gurugram, India, is a diversified manufacturer and supplier of automotive components, specialized tools, and buses, serving both domestic and international markets. The company's operations are structured across three distinct divisions: the Component Division, which focuses on sheet metal parts, assemblies, and sub-assemblies; the Tool Room Division, responsible for designing and producing tools, dies, and molds; and an OEM (Original Equipment Manufacturer) Division. JBM Auto's automotive product portfolio includes a comprehensive range of items such as structural Body-in-White (BIW) parts (e.g., cross-car beams), chassis and suspension systems (like skin panels), and custom-engineered tools and dies for complete project solutions. Beyond components, the company is also significantly involved in the bus sector, undertaking the design, development, manufacturing, assembly, and sale of various bus types, including CNG, diesel, and electric models. This bus business segment further extends to providing associated parts, accessories, and essential maintenance services.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. In particular, the stock is overpriced on P/E, of fair value on EV/