JBM Auto (JBMA)

FairStock Score: 40/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at JBM Auto through a Graham lens first, and the numbers make me pause. At ₹622.95, the market cap is ₹14,732 Cr, but book value is only ₹48.28, so P/B is 12.90. Graham Number is ₹107.12, leaving a margin of safety of -414.70%. That is not a bargain; it is a hope premium. The business has grown: 5-year revenue CAGR is 22.96%, recent sales growth 15%, profit growth 14.10%, and latest quarter sales ₹1,614 Cr with net profit ₹60 Cr. Promoter holding is strong at 67.53%, and Piotroski F-Score 8/9 suggests accounting momentum. But ROE 15.61% and ROCE 14.20% are only moderate, not the exceptional returns I want from a wide-moat compounder. Debt/Equity 1.90 is high, and free cash flow is negative ₹162 Cr, so growth is consuming cash, not producing owner earnings. The dividend yield is negligible at 0.14%. Valuation is stretched: P/E 65.78, PEG 113.14, EV/EBITDA 319.46. Even with Altman Z-Score 2.92 and FairStock 40/100, the price already embeds immense future success. If growth slows or leverage bites, the downside could be large. I prefer to buy wonderful businesses at fair prices, not fair businesses at wonderful prices. JBM may be a fast grower, but at this price it lacks margin of safety. I would watch cash flow turning positive, debt reduction, and whether ROCE improves before considering it.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer