Check Before You Invest : JBM Auto Ltd

BSE: 532605 NSE: JBMA ISIN: INE927D01051

| Sector: Automobiles | Industry: Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does JBM Auto Ltd belong to?

JBM Auto Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.

Q.2 Is JBM Auto Ltd a good quality company?

JBM Auto Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is JBM Auto Ltd undervalued or overvalued?

JBM Auto Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is JBM Auto Ltd a good buy now?

JBM Auto Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of JBM Auto Ltd?

JBM Auto Ltd revenue growth is 9.2% for FY-2025, which is below its 5-year CAGR of 22.96%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of JBM Auto Ltd?

JBM Auto Ltd Return on capital employed is 14.38% for FY-2025, which is above its 5-year historical median of 13.67%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of JBM Auto Ltd?

JBM Auto Ltd Return on Asset is 4.01%, which is in line with its 5-year historical median of 4.01%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of JBM Auto Ltd?

JBM Auto Ltd Return on equity is 17.05% for FY-2025, which is in line with its 5-year historical median of 17.05%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of JBM Auto Ltd?

JBM Auto Ltd Cash conversion cycle is 14 days, below its 5-year historical median of 34 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.02	1.12
ROE	17.05	17.05
ROCE	14.38	13.67
Cash Conversion Cycle	14 days	34 days

Q.6 Gross Profit margin of JBM Auto Ltd?

JBM Auto Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.8% for FY-2025, which is above its 5-year median of 8.1%, indicating increasing margins.

Q.7 Operating Profit Margin of JBM Auto Ltd?

JBM Auto Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.42% for FY-2025, which is above its 5-year median of 10.8% indicating increasing margins.

Q.8 Net Profit Margin of JBM Auto Ltd?

JBM Auto Ltd Net Profit Margin is 3.92% for FY-2025, is in line with with its 5-year median of 3.87%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	8.8	8.1
Operating Profit Margin	12.42	10.8
Net Profit Margin	3.92	3.87

Q.9 Debt to Equity ratio of JBM Auto Ltd?

JBM Auto Ltd Debt-to-Equity ratio is 1.93, which is above with the industry average of 0.46, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of JBM Auto Ltd?

JBM Auto Ltd Debt to cash flow from operations is 6.63, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of JBM Auto Ltd?

Promoters hold 67.53% of the JBM Auto Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of JBM Auto Ltd vs industry peers?

JBM Auto Ltd revenue CAGR is 22.96%, compared to the industry median CAGR of 12.41%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	9.2	12.4
Gross Profit Growth	18.7	16.2
Operating Profit Growth	15.9	14.7
Net Profit Growth	10.8	20

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.02	1.23
ROE	17.05	12.01
ROCE	14.38	13.5
Cash Conversion Cycle (days)	13.79	47

Valuation & price assessment

Q.1 Stock return of JBM Auto Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 34.7% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	34.7%	49.9%	17.2%	-2.1%

Q.3 Valuation ratios of JBM Auto Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	70.69	72.19	28.80
Price to Book	10.09	11.11	2.99
Price to Sales	2.53	2.77	1.35
EV to EBITDA	22.68	24.26	11.86

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