JBM Auto Limited

Consumer Cyclical — Auto Parts · NSE

₹540.40+₹5.55 (+1.04%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

The 60-second version of JBM Auto Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

JBM Auto Limited engages in the manufacture and sale sheet metal components, tools, dies and moulds, and buses in India and internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Employees2,988

Annual revenue₹5,812 Cr

How does it make money?

Turns over ₹5,812 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 2,988 employees supports ₹1.94 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.94 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 22.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 14.2% against a peer median of 23.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE23.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +65% while net margin moved +7% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+65%

Margin effect+7%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 1.90x is high — earnings must service borrowings before shareholders see anything
• Current ratio of 1.10 covers short-term liabilities, without much slack
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
✗ Interest cover of only 2.0x — little room if profits dip
✗ Debt has grown 22.7% a year — worth checking what it bought

Quality vs. Valuation

Company Quality

60/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

41/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

57.0x

3Y Median

86.0x

40 monthly readings · mean 106.2x · range 58.3x–206.0x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 34% below its 3y median of 86.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 25% above the peer median of 45.7x.

vs. its own history

Cheap

86.0x median over 40 months · -34%

vs. sector peers

Expensive

45.7x median of 4 peers · +25%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

19.5x

PEG

2.75

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 11.9% to 13.9% over 3 years.
Return on capital is rising
ROCE has improved from 16.1% to 22.4%.
High return on capital employed
ROCE of 22.4% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

6 items require attention · 5 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 85% over 3 years, from ₹1,703 Cr to ₹3,145 Cr.
🔴High leverageFinancial
Debt/Equity of 1.90x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 2.0x — little room if earnings dip.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 366% against revenue up 65% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹362 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 11.9% to 13.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 34% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 366% against revenue up 65%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 25% above the peer median. That premium needs a reason that persists, or it closes.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
5 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 14% a year✓ 18.1% CAGR
Latest reported year was 15.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 13.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹362 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.0x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹12,780 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

57.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

11.19x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹9.48

Profitable

Profitable on a per-share basis

ROE

14.2%

Moderate

Moderate capital efficiency

ROCE

22.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.90x

High

High leverage

Revenue Growth (YoY)

15.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

14.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.16%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹362 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

27.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

8.3%

Average

Average margins

Net Margin

3.6%

Average

Average bottom-line conversion

Current Ratio

1.10

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.17

Defensive

Steadier than the market

52W Range Position

24%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

559.8 / 601.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

28.2

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,529 Cr	₹4,723 Cr	₹5,196 Cr	₹5,812 Cr	+18.1%
EBITDA	₹419 Cr	₹592 Cr	₹687 Cr	₹811 Cr	+24.6%
EBITDA Margin	11.9%	12.5%	13.2%	13.9%	—
PAT (Net Profit)	₹124 Cr	₹179 Cr	₹202 Cr	₹219 Cr	+20.7%
EPS	₹5.26	₹7.56	₹8.54	₹9.25	+20.7%
ROE	12.1%	15.3%	14.9%	14.2%	—
ROCE	16.1%	20.9%	18.6%	22.4%	—
Total Debt	₹1,703 Cr	₹2,127 Cr	₹2,630 Cr	₹3,145 Cr	+22.7%
Free Cash Flow	-₹143 Cr	-₹23 Cr	₹272 Cr	-₹362 Cr	—

🟢 Revenue has grown at 18.1% a year over 3 years.

🟢 EBITDA has grown at 24.6% a year over 3 years.

🟢 EBITDA Margin has risen from 11.9% to 13.9% over 3 years (+2.1 pts).

🟢 PAT (Net Profit) has grown at 20.7% a year over 3 years.

🟢 EPS has grown at 20.7% a year over 3 years.

🟢 ROE has risen from 12.1% to 14.2% over 3 years (+2.1 pts).

🟢 ROCE has risen from 16.1% to 22.4% over 3 years (+6.2 pts).

🔴 Total Debt has grown at 22.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7,370 Cr

Total Liabilities

₹5,778 Cr

Cash & Equivalents

₹91 Cr

Operating Cash Flow

-₹60 Cr

Capex

-₹302 Cr

Shareholding (proxy)

Institutional Holding

1.6%

Insider Holding

82.9%

Corporate Actions

Dividend Rate

₹0.85

Ex-Dividend Date

09 Sept 2026

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

2 mixed4 general

JBM Auto soars 10% on heavy volume; here's why the stock is buzzing

Business Standard, 21 Aug

Why JBM Auto Share Price is Rising

Equitymaster, 21 Aug

Here's Why We Think JBM Auto (NSE:JBMA) Is Well Worth Watching

Simply Wall Street, 04 Jun

JBM Auto rallies 10%; stock jumps 16% in 6 months; what is driving the surge?

Upstox, 21 Aug

JBM Auto Share Price Jumps 10% In Trade. Here's Why

NDTV Profit, 21 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

JBM Auto EV Launch Lifts Sentiment; Shares Gain Over 3%

HDFC Sky, 10 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Growth

MiddlingRisk

WeakFinancial Health · Profitability · Valuation

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 5 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑