This stock has delivered more than 250% return to its shareholders in one year

Shares of JBM Auto Limited have delivered more than 250 per cent return to its shareholders in the past one year. The stock rose 9 per cent to hit an intraday high of Rs 972.4 on the Bombay Stock Exchange (BSE) in an otherwise weak market today.

The small-cap stock surged after the company announced that its board would consider a stock split proposal at a meeting on December 8. “A meeting of the Board of Directors of the company is scheduled to be held on December 8, 2021, to consider and approve the proposal of sub-division of company’s equity shares having face value of Rs 5 each,” JBM Auto said.

In the past one year, the share price jumped from Rs 257.9 to Rs 972.4 mark — logging around 278 per cent return in this period. The scrip has jumped around 230 per cent since the beginning of this year.

An amount of Rs 5 lakh invested in this multibagger stock a year ago would have turned into Rs 18.9 lakh today.

With a market capitalisation of more than Rs 4,000 crore, the shares stand higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

“Despite the semiconductor supply challenges, the company is able to deliver strong revenue growth in the component business. We expect the bus division to continue to deliver strong performance in the coming year on the back of a strong order book of 1000+ buses GoI’s increasing focus on Make in India, reducing dependency from China and preference for local manufacturers augurs well for companies like JBM auto,” brokerage house Dolat Capital said in a report.

“We expect the sheet metal division to also witness strong growth from 2Q in line with ramp up in production by its key clients such as Tata Motors, Ford, HCIL, Toyota, M&M and VECV. We expect volume recovery and new launches in the PV segment to aid revenue growth and margin expansion,” the brokerage firm said.

It noted that JBM Auto’s growth story is premised on strong upcycle for PVs for next two years, encouraging revenue potential in the tooling business (high margin +25%) and increasing economies of scale in the bus division.

“We recommend ‘BUY’ with SOTP based target price of Rs 1,192 (25x of FY24E EBITDA to EVs bus division and 10x components & tooling business),” it added.

According to MarketsMojo, the company has declared Positive results for the last 3 consecutive quarters. The technical trend has improved from Mildly Bullish on October 4, 2021, and has generated 70.31% returns since then.

The stock is technically in a Bullish range now and multiple factors for the stock are Bullish like MACD, Bollinger Band, KST, DOW and OBV.