Why is JBM Auto falling/rising?

Jun 30 2025 09:03 PM IST
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As of 30-Jun, JBM Auto Ltd is priced at 643.45, showing a slight increase but significant short-term underperformance with a 1-week return of -1.76% and a 1-month return of -10.24%. The stock is trading below all moving averages, indicating a bearish trend, and faces challenges with high debt levels despite healthy long-term growth.
As of 30-Jun, JBM Auto Ltd is currently priced at 643.45, reflecting a slight increase of 0.95 or 0.15%. However, the stock has underperformed significantly in the short term, with a 1-week return of -1.76% and a 1-month return of -10.24%. Today's price summary indicates that JBM Auto is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, suggesting a bearish trend. Additionally, there has been a notable decline in investor participation, with delivery volume dropping by 59.26% compared to the 5-day average. While the company has demonstrated healthy long-term growth with net sales increasing at an annual rate of 24.58% and operating profit at 27.17%, it faces challenges such as a high Debt to EBITDA ratio of 3.86 times, which indicates a low ability to service debt. The stock's performance over the past year has been particularly poor, generating a return of -37.30%, despite a profit increase of 12.9%.

In the broader market context, JBM Auto's recent performance contrasts sharply with the benchmark, as the Sensex has gained 2.09% over the past week and 2.65% over the past month. The stock's significant underperformance relative to the market, alongside a lack of confidence from domestic mutual funds, which hold only 0.22% of the company, suggests that investors may be wary of the stock's valuation and financial health. Despite trading at a discount compared to its peers, the high PEG ratio of 5.8 indicates that the stock may still be considered expensive relative to its growth prospects. Overall, the combination of declining investor interest, poor short-term returns, and concerns about debt servicing capabilities contribute to the stock's challenging position in the market.
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