A contract of Rs 7,500 crore is awarded to JBM Auto Limited for 1,390 electric buses

On March 19, JBM Auto Limited made significant news that caused its shares to rise by almost 10%.

According to The Economic Times, the business informed the exchanges that JBM Ecolife Mobility Private Limited, one of its subsidiaries, had been designated the L1 (lowest bidder) and had won the bid for an order for electric buses.

This development enhances JBM Auto Limited’s market position by demonstrating the subsidiary’s achievement in securing a significant role in the electric mobility sector.

The JBM Auto Limited subsidiary JBM Ecolife Mobility has secured a significant order for Rs 7,500 crore for 1,390 electric buses. As part of the PM-eBus Sewa Scheme, Convergence Energy Services Limited (CESL) awarded this sizable procurement in the interim. The CESL’s directive is a significant step towards India’s transition to sustainable transportation.

Under this project, JBM Ecolife Mobility will be responsible for developing the auxiliary electric and civil infrastructure as well as the procurement, supply, operation, and maintenance of the buses on a gross cost contracting (GCC) basis. The request must be completed by the firm within the following 12 to 18 months.

Following this statement, JBM Auto’s shares rose 9.8% during intraday trading on March 19 to a high of Rs 2060. The firm has already produced multibagger gains in the last year, increasing by 199%, and the 2024 year-to-date (YTD) has seen a growth of more than 40%.

Reports state that it saw a about 12% in value in March of this year, ending a four-month winning trend that had started in November 2023. In the meantime, it grew by 12.7% in February and 30.7% in January of 2024.

The stock is still over 15% behind its all-time high of Rs 2,417.30, which was established on February 19, 2024, even with the increase on March 19. In the meantime, from its 52-week low of Rs 604.00 on March 20, 2023, it has increased by more than 241%.

In addition to manufacturing vehicle systems, JBM Vehicle Limited is involved in the e-mobility sector. The business manufactures and markets sheet metal components, dies, and moulds in addition to buses and their accessories, replacement parts, and maintenance contracts.