JBM AUTO - best auto in making?

Company Profile - 

JBM AUTO, a public limited company, was incorporated in 1990 mainly to manufacture tools, dies and moulds for the automobile industry, from its Faridabad facility. Subsequently in 1993, the company entered the sheet metal components manufacturing business for OEMs(original equipment manufacturers)other than Maruti Suzuki India Limited to benefit from the growing demand from the automotive sector. Further in 2006, JBM Auto started its Special Purpose Vehicle division engaged in the fabrication and assembly of bodies of heavy vehicles. JBM Auto is part of the JBM Group of companies, and the other major auto component manufacturing companies of the group are Jay Bharat Maruti Limited and Neel Metals Products Limited.

JBM AUTO operates in three segments: Sheet Metal Division (for manufacturing sheet metal components, assemblies, sub-assemblies), Tool Room Division (for manufacturing tools, dies and moulds) and Special Purpose Vehicle (SPV) division (for development and assembly of SPV).

JBM has also kicked off partial production of complete cabs for the new trucks from VE Commercial Vehicles(Volvo-Eicher motor JV). JBM Auto’s in-house R&D, based in Delhi-NCR, works in sync with its global R&D centres in Italy and Germany-owned by JBM subsidiaries.

JBM is involved in the design of all vehicle types right from concept stage including packaging and engineering and is working on projects with Volvo, Fiat, Mahindra & Mahindra, Volkswagen AG, Ashok Leyland, Tata Motors and other OEMs. It also provides engineering services to Mercedes-Benz/Daimler, Lamborghini and McLaren.

Why to buy?

1. JBM  Auto products are widely used in two-wheelers, cars, tractors and trucks, white goods industries and other sectors in India and overseas. The company’s manufacturing facilities and tool rooms are strategically located in close proximity of leading automobile hubs of India at Faridabad, Greater Noida, Nashik, Chennai, Sanand and Pune for catering to diversified clients.

2.JBM has also installed new facilities for manufacturing of passenger buses and other allied products at its manufacturing units situated at Ballabgarh (Faridabad) and Kosi Kalan (Mathura). These expansions shall give JBM a big leap forward to generate the revenue for the future growth.

3.The reduction in rate of interest expected going forward, more certainty in economy, more liberal policies of Government relating to foreign investment in India and reduction in excise duty will lead to better growth of Automobile Industry in India as well as opening global destinations also.

4. Past financial performance is always remain consistent and with the economical revival we can expect company to post decent numbers in coming quarters.

5.The Government of India allows 100 per cent FDI in the automotive industry through automatic route. With a special focus on exports of small cars, multi-utility vehicles (MUVs), two and three wheelers and auto components, the automotive sector’s contribution to the GDP is expected to double in 2016-2017.

With all this positive indication we recommend our buyers to make an entry point at CMP of 180.