JBM Auto (JBMA)
Fast GrowerFairStock Score: 40/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹622.95 |
| Market Cap | ₹14,732.41 Cr |
| P/E Ratio | 65.78 |
| ROCE | 14.2% |
| ROE | 15.61% |
| Dividend Yield | 0.14% |
| Profit Growth | 14.1% |
| Debt/Equity | 1.9 |
| Sales Growth | 15% |
| Free Cash Flow | ₹-162 Cr |
| Promoter Holding | 67.53% |
| 52-Week Range | ₹477 — ₹790 |
| Sector | Auto Components |
| Book Value | ₹48.28 |
Strengths
- Strong promoter holding of 67.53% aligns management with minority shareholders.
- Decent profitability: ROE of 15.61% and ROCE of 14.20%.
- Healthy Piotroski F-score of 8/9 signals solid recent financial health.
- Long-term growth record: 5-year revenue CAGR of 22.52%; latest quarter sales of ₹1,614 Cr.
Concerns
- Extremely expensive: P/E of 60.16, P/B of 10.90, EV/EBITDA of 319.46, Graham number ₹107.12, and margin of safety -414.70%.
- High leverage: Debt/Equity of 2.24 and Altman Z-Score of 2.92 indicate vulnerability in a downturn.
- Negative free cash flow of -₹162 Cr despite reported profits.
- Growth is decelerating: sales and profit growth ~10%, and PEG of 113.14 implies massive overvaluation.
AI Analysis
Let's examine JBM Auto through a Graham lens. The promoter holding of 67.53% gives me confidence that owners are aligned. The Piotroski F-score of 8/9 also suggests a healthy recent financial position. But I invest based on price against intrinsic value, not momentum. The business has grown revenue at 22.52% compounded over five years, yet current sales growth has slowed to 10.71% and profit growth to 10.22%. That is still respectable, but the market asks for an enormous premium. At ₹622.40, the company trades at a P/E of 60.16 and a P/B of 10.90. Book value is only ₹57.11. Graham would calculate a maximum value near ₹107.12; today's price gives a margin of safety of negative 414.70%. That is no margin at all. The underlying returns are acceptable—ROE 15.61% and ROCE 14.20%—but these are helped by a debt-to-equity ratio of 2.24. With a negative free cash flow of ₹162 Cr, the earnings quality worries me. In the latest quarter, sales were ₹1,614 Cr and net profit ₹60 Cr, but cash generation is absent. The EV/EBITDA of 319.46 and PEG of 113.14 are flags that valuations have detached from fundamentals. Even the dividend yield of 0.15% offers no income support. I would rather miss a speculative rally than overpay for a good business. At this price, JBM Auto fails every test of margin of safety. I pass.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer