Mehabe score: 5 G Factor: 2 Piotski Score: 4 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 2 and Piotski score of 4.
Description
JBM Auto Ltd is engaged in the automotive business that manufactures and sells sheet metal components, tools, dies & moulds and buses including sale of spare parts accessories & maintenance contract of Buses.[1]Site:JBMAMain Symbol:JBMA
Stock trades at 702.0, above its 50dma 477.48. It also trades above its 200dma 414.55. The stock remains bullish on techicals
The 52 week high is at 549.00 and the 52week low is at 218.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– Stock is trading at 4.46 times its book value
-The company has delivered a poor sales growth of 5.48% over past five years.
– has a low return on equity of 11.22% for last 3 years.
-Dividend payout has been low at 11.90% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 23.3x. WABCO India trades at the industry’s max P/E of 99.95x. JBMA trades at a P/E of 38.0x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 7.0. JBMA has a G-Factor of 2 and Piotski scoreof 4.
– Average 1 month return for industry is 2.1%. The max 1- month return was given by JBM Auto: a return of 15.05 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 753.0 cr compared to Rs 517.0 cr for period ended Sep 2020, a rise of 45.6%
Operating Profits reported at Rs 78.0 cr for period ended Sep 2021 vis-vis 60.0 for period ended Sep 2020 .
Operating Margins contracted -124.7 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 5.35 compared to Rs 2.58 for previous quarter ended Jun 2021 and Rs 4.33 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2635.0 cr for period ended TTM vis-vis sales of Rs 1982.0 cr for the period ended Mar 2021, a healthy growth of 24.8%. The 3 year sales cagr stood at 6.1%.
Operating margins expanded to 11.0% for period ended TTM vis-vis 10.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 92.0 cr for period ended TTM vis-vis sales of Rs 49.0 cr for the period ended Mar 2021, rising 46.7%.
Company reported a poor Net Profit CAGR of -2.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 7.0% compared to 11.0% over the last 3 Years. – The stock has given a return of 197% on a 1 Year basis vis-vis a return of 31% over the last 3 Years. – The compounded sales growth on a TTM bassis is 54% vis-vis a compounded sales growth of 7% over the last 3 Years. – The compounded profit growth on a TTM basis is 233% vis-vis a compounded profit growth of -11% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 0.93% vis-vis 0.89% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 31.52% vis-vis 31.56% for Jun 2021
Conclusion
– is expected to give good quarter – Stock is trading at 4.46 times its book value
-The company has delivered a poor sales growth of 5.48% over past five years.
– has a low return on equity of 11.22% for last 3 years.
-Dividend payout has been low at 11.90% of profits over last 3 years
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 477.48 and is trading at 702.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
