JBM Auto Ltd, a prominent player in the electric vehicle (EV) sector, experienced a mild decline in its stock price on April 17, 2025, closing at ₹689.05, down ₹5.70 or 0.82%. This dip mirrored broader caution in the auto and EV-linked mid-cap sectors as traders opted to book early profits following a recent surge in prices.
The stock opened at ₹694.75, matching the previous day’s closing level, but quickly fell below ₹685 before recovering slightly toward the ₹690 mark. The intraday market snapshot indicated a high of ₹697.45 and a low of ₹682.55, with the previous close also recorded at ₹694.75.
JBM Auto's market capitalization stands at ₹16,290 crore, with a price-to-earnings (P/E) ratio of 85.21 and a dividend yield of 0.11%. Over the past year, the stock has fluctuated significantly, hitting a 52-week high of ₹1,169.38 and a low of ₹489.80.
The decline in JBM Auto's stock price can be attributed to several factors. Analysts have pointed out the weakness in the broader auto sector, particularly among mid-cap names. Profit booking by traders, who had seen gains in recent sessions, also contributed to the decline. Additionally, general market sentiment remained cautious due to global economic headwinds and uncertainties surrounding earnings. There was also a noted lack of fresh business announcements from the company.
Analysts suggest that the ₹685–₹680 range is a crucial short-term support zone for JBM Auto, while resistance is expected near ₹700–₹705. A break above this resistance could renew bullish momentum, while maintaining above ₹680 on a closing basis will be vital for the long-term trend.
For traders, a wait-and-watch strategy is advised unless the stock convincingly reclaims the ₹700 mark. Intraday traders are encouraged to look for reversal signs near the ₹685 level. Long-term investors, however, may find the prospects of JBM Auto's EV bus and components business appealing, though the high P/E ratio necessitates caution, making it suitable for growth-focused portfolios with a higher risk appetite.
Looking ahead, investors should monitor upcoming Q4 results, particularly focusing on margins from the electric mobility division. Tracking news related to new product orders, government EV subsidies, and contract wins will also be crucial. Comparing JBM Auto with other EV component manufacturers like Sona BLW, Bharat Forge, and Greaves Cotton is recommended for a comprehensive market overview.
On the same day, shares of JBM Auto's competitor, Ola Electric Mobility, also experienced a surge. On April 16, 2025, following reports that the government is launching tenders to procure electric buses, shares of both JBM Auto and Ola Electric skyrocketed as much as 13% on the National Stock Exchange (NSE). JBM Auto’s stock surged 12.73% to an intra-day high of ₹704.60, and by 12:40 PM, it was trading at ₹686.45, reflecting a 9.82% increase.
Convergence Energy Services Ltd (CESL) announced plans to float a tender to select an intra-city e-bus operator for nine major cities, including Bengaluru, Chennai, Hyderabad, Pune, Mumbai, Surat, Ahmedabad, New Delhi, and Kolkata. The Ministry of Heavy Industries has reportedly set a maximum subsidy amount of ₹35 lakh per electric bus.
Despite the recent uptick, JBM Auto has faced challenges this year, with shares down 9.18% since the beginning of 2025. The stock hit its 52-week low of ₹489.80 on March 17, 2025, and reached a high of ₹1,169.38 on July 9, 2024. The company’s market capitalization was reported at ₹16,403.24 crore as of April 16, 2025.
Ola Electric Mobility also saw positive movement, with shares climbing 4.99% to an intra-day high of ₹52.78 on April 16, 2025. However, the stock has faced volatility, down 40.94% year-to-date and reaching a year’s low of ₹45.35 on April 7, 2025. Its market capitalization stands at ₹22,301.16 crore as of the same date.
Additionally, JBM Auto recorded a notable trading volume of 155.31 lakh shares by 14:14 IST on April 16, a staggering 47.05 times increase over its two-week average daily volume of 3.30 lakh shares. The stock rose 10.58% to ₹691.20 during the session, reflecting a significant interest from investors.
Other stocks also noted increased trading volumes on the NSE, including Gujarat Mineral Development Corporation Ltd and Indian Renewable Energy Development Agency Ltd, indicating a broader interest in the energy and auto sectors. This surge in trading activity points to a growing investor interest in EV and renewable energy stocks amidst ongoing government initiatives to support the sector.
As the market continues to react to government policies and global economic conditions, investors are advised to remain vigilant and informed about the developments in the EV sector. JBM Auto's long-term prospects remain positive, but the recent market dynamics emphasize the need for strategic trading and investment decisions.
