JBM Auto Ltd.
ISIN: INE927D01051 • Market Cap: ₹14,644 Cr
The 5-Pillar Quality Audit for JBM Auto Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (11.6%), Return on Capital Employed (20.2%), and equity compounding (14.9%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 1.93 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (17.6%) and 3Y PAT CAGR (28.4%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 65.32 vs PEG of 3.25 and Dividend Yield of 0.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 67.5%, backed by 2.2% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 20.2%)
JBM Auto Ltd. generates exceptional return on capital employed of 20.2%, reflecting pricing power and competitive moat.
Strong Topline Expansion (3Y Sales CAGR: 17.6%)
Revenue has expanded at 17.6% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 28.4%)
Net earnings have compounded at 28.4% annualized, demonstrating operating leverage.
Areas to Watch & Potential Risks
Elevated Financial Gearing (D/E: 1.93)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Priced for Perfection (P/E: 65.32)
A steep valuation multiple of 65.32 leaves little margin for safety against quarterly earnings misses.
Quantitative Strategy Eligibility
Checking JBMA against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 63/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Automobile and Auto Components Sector Peer Comparison
Compare JBMA directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| JBM Auto Ltd. (JBMA)Current | 63/100 | ₹14,644 Cr | 65.32 | 20.2% | 1.93 | — |
| Maruti Suzuki India Ltd. (MARUTI) | 71/100 | ₹4.30 Lakh Cr | 30.02 | 15.6% | 0.00 | View |
| Mahindra & Mahindra Ltd. (M&M) | 72/100 | ₹4.24 Lakh Cr | 22.97 | 16.6% | 1.43 | View |
| Bajaj Auto Ltd. (BAJAJ-AUTO) | 77/100 | ₹3.22 Lakh Cr | 27.34 | 25.4% | 0.57 | View |
| Eicher Motors Ltd. (EICHERMOT) | 74/100 | ₹2.19 Lakh Cr | 37.86 | 23.7% | 0.01 | View |
| TVS Motor Company Ltd. (TVSMOTOR) | 68/100 | ₹2.07 Lakh Cr | 60.46 | 29.9% | 3.31 | View |
Frequently Asked Questions: JBM Auto Ltd.
Q:What is the 5-Pillar Fundamental Score for JBM Auto Ltd. (JBMA)?
JBM Auto Ltd. has a RupeeTools Fundamental Score of 63/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (70/100), Financial Health (52/100), Growth (86/100), Valuation (32/100), and Ownership Quality (65/100).
Q:Is JBMA fundamentally strong for long-term investment?
JBMA currently holds a moderate quality rating of 63/100. While it operates in the Automobile and Auto Components sector, investors should monitor its debt health before initiating long-term positions.
Q:Does JBMA pass the Coffee Can Investing filter?
Yes! JBMA satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does JBMA compare against other Automobile and Auto Components peers?
Within India's Automobile and Auto Components sector, JBMA trades at a P/E of 65.32 and generates an ROCE of 20.2%. Compare its 5-Pillar score of 63/100 against top sector peers like Maruti Suzuki India Ltd. (71/100), Mahindra & Mahindra Ltd. (72/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.