Today I will talk on a auto ancillaries sector company
JBM AUTO @CMP 1003
JBM Auto company was originally set up in the year 1990, mainly to
manufacture Tools, Dies and Moulds at Faridabad. In the year 1993 the
Company established a Press Shop for manufacturing of Sheet Metal
Components and Welded Sub-assemblies to meet the growing stringent
quality requirements of automobile industry. The company went for its
first public issue in March, 1994.
JBM Auto’s current market capitalization stands at Rs 1,023.66 crore and has reported a
consolidated sales of Rs 355.94 crore and a Net Profit of Rs 23.97 crore
for the quarter ended Jun 2014. Its EPS is 34.8 which P/E of the stock is about 29.
A year back the stock was trading @ Rs. 47 only and now only within 12 months it is trading @1000/- giving mind boggling return of 21.3 times. Promoters are very much confident about the stock and increased their holdings to 62%. The debt of company is continuously reducing for last three years, In 2011 its debt was 198 crore, which is gradually reduced to 162 crore.
Also company, in its AGM recently decided to sub-divide the stock of face value 10 into two stocks of face value 5 each. Further 30% dividend is also declared for this financial year 2013-14.
Note : Author is intending to buy 10 shares of the stock.