The share price of this auto company has zoomed 100% in just two months

JBM Auto is cautiously optimistic for FY22 due to higher spend in infrastructure, PLI scheme, scrappage policy and the work done so far within the company.

Shares of JBM Auto hit a new high of Rs 914, zooming 18 per cent on the BSE in Tuesday’s intra-day trade on strong outlook. In the past two months, the stock price of the auto parts & equipment has zoomed 100 per cent after receiving multiple orders for supply of electric buses.

JBM Auto is engaged into the business of sheet metal components, tools & dies. The company is also an Original Equipment Manufacturer (OEM) as it is engaged in the production of passenger buses.

On November 8, 2021, JBM Auto announced that the company has received prestigious order for supply of 200 air conditioned fully built low floor electric buses of 12 meter length for Delhi Transport Corporation (DTC) under Government of India flagship Fame II (Faster Adoption and Manufacturing of Electric Vehicle) policy.

Earlier on September 23, 2021, the company had received orders for supply of 500 compressed natural gas (CNG) and electric buses from various State governments. The company had received orders for BSVI CNG buses from Delhi Integrated Multi-Modal Transit System (DIMTS).

Besides, the company will be supplying electric buses for Bengaluru Metropolitan Transport Corporation (BMTC). The company had also received orders to supply electric buses in Jhansi, smart city Uttar Pradesh. Besides, several corporate clients have ordered electric buses, the company said. These orders will be executed in the current financial year, JBM Auto had said.

JBM Auto became the first company in India to be ready with a BS-VI compliant 12m LF CNG bus for public transportation and Delhi became the first city in the country to add the new-age vehicles to its bus fleet. The product has been powered with the new engine which has larger capacity and distinct advantages. For instance, the vehicle can be run at lower RPMs with requisite torque output leading to higher fuel economy, the company said in FY21 annual report.

The future of mobility in India and the world is rapidly evolving towards becoming more electrified and environment friendly, while delighting end users with superior experiences. The pace of progress is especially rapid and exciting in the electric vehicle (EV) space with special focus on public transportation contributing the highest percentage in the FAME II policy as well, the company said. The company’s management is cautiously optimistic for FY22 due to higher spend in infrastructure, PLI scheme, scrappage policy and the work done so far within the Company.