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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Minda Corp

ASK Automotive

Lumax Auto Tech.

Ramkrishna Forg.

Varroc Engineer

SPR Auto Technol

CIE Automotive

Sedemac Mechatro

Amara Raja Ener.

JBM Auto

HBL Engineering

Why is JBM Auto Ltd ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.30 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.30 times

Negative results in Jun 26

PBT LESS OI(Q) At Rs 28.53 cr has Fallen at -37.0% (vs previous 4Q average)
PAT(Q) At Rs 42.20 cr has Fallen at -25.4% (vs previous 4Q average)
INTEREST(Latest six months) At Rs 191.10 cr has Grown at 32.48%

With ROCE of 12, it has a Expensive valuation with a 4.1 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 5.89%, its profits have risen by 12.9% ; the PEG ratio of the company is 5.2

Despite the size of the company, domestic mutual funds hold only 0.33% 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

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, Medium Return

Absolute

Risk Adjusted

Volatility

JBM Auto

5.89%

0.13

43.84%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.20%

EBIT Growth (5y)

24.12%

EBIT to Interest (avg)

2.20

Debt to EBITDA (avg)

4.13

Net Debt to Equity (avg)

1.88

Sales to Capital Employed (avg)

1.36

Tax Ratio

23.91%

Dividend Payout Ratio

9.96%

Pledged Shares

Institutional Holding

2.19%

ROCE (avg)

11.21%

ROE (avg)

14.90%

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

10.00

EV to EBIT

32.94

EV to EBITDA

25.08

EV to Capital Employed

4.12

EV to Sales

2.91

PEG Ratio

5.17

Dividend Yield

0.13%

ROCE (Latest)

11.97%

ROE (Latest)

14.71%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bearish

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

3What is working for the Company

ROCE(HY)

Highest at 13.97%

-16What is not working for the Company

PBT LESS OI(Q)

At Rs 28.53 cr has Fallen at -37.0% (vs previous 4Q average

PAT(Q)

At Rs 42.20 cr has Fallen at -25.4% (vs previous 4Q average

INTEREST(Latest six months)

At Rs 191.10 cr has Grown at 32.48%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.79 times

OPERATING PROFIT TO INTEREST (Q)

Lowest at 1.97 times

NET SALES(Q)

At Rs 1,442.45 cr has Fallen at -5.2% (vs previous 4Q average

NON-OPERATING INCOME(Q)

is 52.47 % 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 28.53 cr has Fallen at -37.0% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 45.26 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 42.20 cr has Fallen at -25.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 56.57 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 1.97 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest - Latest six months

At Rs 191.10 cr has Grown at 32.48%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 2.79 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

Net Sales - Quarterly

At Rs 1,442.45 cr has Fallen at -5.2% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 1,522.09 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Non Operating Income - Quarterly

is 52.47 % 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