JBM Auto Ltd (JBMA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Craftsman Auto

Lumax Auto Tech.

Gabriel India

Varroc Engineer

Shriram Pistons

CIE Automotive

Sansera Enginee.

Minda Corp

Amara Raja Ener.

JBM Auto

Belrise Industri

Why is JBM Auto Ltd ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.00 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.00 times

Negative results in Sep 25

PBT LESS OI(Q) At Rs 35.59 cr has Fallen at -26.8% (vs previous 4Q average)
DEBTORS TURNOVER RATIO(HY) Lowest at 4.29 times
DEBT-EQUITY RATIO(HY) Highest at 2.24 times

With ROCE of 11, it has a Expensive valuation with a 3.8 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -27.27%, its profits have risen by 11.1% ; the PEG ratio of the company is 6

Despite the size of the company, domestic mutual funds hold only 0.26% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 2.12% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -27.27% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is JBM Auto for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

JBM Auto

-27.27%

-0.56

48.36%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

28.95%

EBIT Growth (5y)

38.96%

EBIT to Interest (avg)

2.40

Debt to EBITDA (avg)

4.10

Net Debt to Equity (avg)

2.15

Sales to Capital Employed (avg)

1.35

Tax Ratio

22.71%

Dividend Payout Ratio

9.92%

Pledged Shares

Institutional Holding

1.99%

ROCE (avg)

10.70%

ROE (avg)

14.96%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

9.83

EV to EBIT

34.41

EV to EBITDA

25.34

EV to Capital Employed

3.80

EV to Sales

3.00

PEG Ratio

6.04

Dividend Yield

0.14%

ROCE (Latest)

11.04%

ROE (Latest)

14.68%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-7What is not working for the Company

PBT LESS OI(Q)

At Rs 35.59 cr has Fallen at -26.8% (vs previous 4Q average

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.29 times

DEBT-EQUITY RATIO(HY)

Highest at 2.24 times

NON-OPERATING INCOME(Q)

is 52.16 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is not working for JBM Auto

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 35.59 cr has Fallen at -26.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 48.60 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 4.29 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

is 52.16 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Debt-Equity Ratio - Half Yearly

Highest at 2.24 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio