JBM Auto shares up 206% in a year; what's next for this multibagger auto stock?

Shares of JBM Auto Ltd have climbed 17 per cent so far in calendar year 2024. The stock was last seen trading 2.17 per cent higher at Rs 1,897.55 on Thursday. At this price, the multibagger scrip has rallied around 206 per cent in the past one year.

The company recently announced that its subsidiary JBM Ecolife Mobility Pvt Ltd has secured an order for 1,390 electric buses under PM-eBus Sewa Scheme. "JBM Ecolife has been declared as lowest bidder and awarded the tender as a bus operator for procurement, supply, operation and maintenance of 1,390 e-buses and development of allied electric and civil Infrastructure on gross cost contracting under the PM-eBus Sewa Scheme," it stated in an exchanged filing.

The order is valued at around Rs 7,500 crore.

Technical analysts largely remained divided on the counter. One of them said it may climb towards Rs 2,050 level in the near term while the other suggested that the stock looked "sideways to bearish" on daily charts.

One can consider buying the stock for an upside target of Rs 2,050, said Ravi Singh, Senior Vice President – Retail Research at Religare Broking. Keep stop loss placed at Rs 1,850, he added.

"JBM Auto stock price looks sideways to bearish on daily charts with strong resistance at Rs 2,007. A daily close below Rs 1,665 level could lead to a downward target of Rs 1,465 in the near term," said AR Ramachandran from Tips2trades.

Bourses BSE and NSE have put the securities of JBM Auto under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

As of December 2023, promoters held a 67.53 per cent stake in the company.

JBM Auto is a part of JBM Group. The group has operations in more than 25 locations across 10 countries. It is amongst the world's leading manufacturers of key auto systems, electric vehicles and buses.