JBM Auto zooms into upper circuit!

JBM Auto since 19th March has been hitting the upper circuit. And today too, hit hit the 5% upper circuit at Rs.127.40, which is its new 52-week high.

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.