Sunday, April 23, 2017

JBM Auto - Buy On Declines














Company Background :-



JBM Auto Limited is an automotive company that manufactures auto systems and city buses. The Company manufactures sheet metal components for automobiles, and tools and dies for automobiles. Its segments include Sheet Metal Components, Assemblies & Sub-assemblies; Tool, Dies & Moulds, and Bus Division. 


The Sheet Metal Components, Assemblies & Sub-assemblies segment manufactures components. The Tool, Dies & Moulds segment manufactures dies for sheet metal segment or sells dies. The Bus Division includes activities related to development, design, manufacture, assembly and sale of bus, as well as parts, accessories and maintenance contracts of same. 


Its business divisions include Component Division and Tool Room Division. Its product portfolio includes chassis and suspension parts, air tanks, fuel tanks, exhaust systems and complete cowl assemblies. The Company manufactures skin panels, chassis and suspension systems, and cross car/truck beam, among others.


Stock Performance :
The scrip has given a decent 50% return in the last one year.  After touching 52 week low of 125 in June last year the scrip has peaked to Rs.325 giving a whopping 160% return.

Recommendation :
Buy on declines of around Rs.260 and hold for a target price of Rs.375 holding period of 9 months

Smart Investor -
Equity Research

No.24 Pattamal Plaza
3rd Cross Kammanahalli
BANGALORE 560084


Smart Investor
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