JBM Auto yesterday hit the 5% upper circuit at Rs.127.40, which was also its new 52-week high. And this sudden spike up of interest in the stock is mainly on account of its commercial bus project. The company announced yesterday after market closure that its bus project is expected to begin commercial production by Oct’14.  This project in a JV with Italian busmaker BredaMenarinibus, to make luxury buses in the country. The plan is to first launch 60-seater CNG city buses and diesel powered coaches.  Currently, JBM Auto supplies components to carmakers like Ford, Honda and Fiat. And post this bus, it will compete with the likes of Volvo, Mercedes-Benz, Isuzu and Scania in the luxury bus market.

Financially, the company has done very well till end of 9MFY14. On a consolidated basis, it posted  a net sales at Rs.893 crore, up 18% and for 12MFY13, it stood at Rs.1031 crore. And net profit for 9MFy14  came in at Rs.29 crore, up 21% while that for 12MFY13 was at Rs.33 crore. With one more quarter to go, clearly, FY14 numbers will surpass that of FY13. Equity is at Rs.10.20 crore and reserves as at 31^st Dec’13 stood at Rs.190 crore. Promoters stake is at 61.99%, with no FII holding.