JBM Auto's stock surged 18 percent on the BSE, hitting a 52-week high of Rs 1,548.35 during Friday's trade, driven by the company's recent announcement of winning orders for 5,000 electric buses from State Transport Undertakings (STUs). Over the past two months, JBM Auto's stock price has soared by an impressive 100 percent, and year-to-date, it has surged over 180 percent, outperforming the S&P BSE Sensex's modest 7.5 percent rise.

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At 10:42 am, JBM Auto's shares were trading at Rs 1,484, marking a 12.86 percent increase from the previous close on the BSE.

In an exchange filing, the company said that the electric buses will be supplied to various STUs in states such as Gujarat, Haryana, Delhi, Telangana, and Orissa, as well as several Fortune 500 companies and prominent corporates within the country. This development positions JBM Auto favorably to meet the growing demand in the electric-mobility sector, facilitating its entry into new markets and expansion of market share.

JBM Auto primarily operates in the manufacturing and sale of automotive products, encompassing sheet metal components, tools, dies, moulds, and buses. As an Original Equipment Manufacturer (OEM), it specialises in the production of passenger buses.

Furthermore, JBM Auto's subsidiary, JBM Ecolife Mobility Private Limited, recently received a substantial infusion of funds from its promoter, Nishant Arya. This financial boost has reshaped the subsidiary's ownership structure, underscoring its pivotal role in the company's future growth strategies.

The bus subsidiary of JBM Auto holds significant importance for the company's expansion plans and revenue growth. In a previous interaction with CNBC-TV18, company representatives expressed their intention to secure additional funding for the bus business.

They have set ambitious targets for the subsidiary, aiming for a threefold increase in bus revenue in FY24, accompanied by an impressive tenfold surge in sales volume.

First Published:Jul 14, 2023 11:48 AM IST