JBM Auto Surges 9% As Board To Consider Share Split

JBM Auto's stock price soared over 6% intraday on November 22 to Rs 53.80 after the business announced that its board of directors would discuss a stock split proposal at a meeting on December 8.

According to the corporation, a board meeting has been scheduled for December 8, 2021, to review and accept the proposal of sub-division of the company's equity shares with a face value of Rs 5 each and related items, subject to regulatory and statutory approvals.

In the last 11 trading days, the shares of an auto auxiliary firm has increased by 62%. On Thursday, November 18, 2021, it reached a new high of Rs 979.85. The stock was up 6% at Rs 945 at 11:39 a.m., compared to a 1.15 percent drop in the S&P BSE Sensex.

JBM Auto announced on Friday that its board of directors would meet on December 8, 2021 to review and adopt a proposal to subdivide the company's equity shares with a face value of Rs 5 each, as well as other connected concerns.

JBM Auto's net profit increased by 23% to Rs 25.30 crore in the quarter ending September 30, 2021, compared to Rs 20.49 crore the previous year. In the quarter ending September 2021, sales increased by 45 percent to Rs 752.72 crore, up from Rs 517.35 crore the previous year.

The stock has been on a tear since the company received an order from the Delhi Transport Corporation for 200 electric buses (DTC). The order was issued under the FAME II electric vehicle program of the federal government.

In the last five years, the company's ROE has been steadily falling. The majority of profits were distributed as dividends to stockholders last year. The stock returned 201.83 percent over three years, compared to 75.74 percent for the Nifty Smallcap 100. JBM Auto Ltd., founded in 1996, is a Small Cap business in the Auto Ancillaries sector with a market capitalization of Rs 4,396.43 crore.