Shares of JBM Auto and Olectra Greentech experienced significant gains, rising between 8% and 12%, fueled by investor optimism over potential orders from an upcoming government tender for 10,000 electric buses. The tender, anticipated to be released next month under the PM E-Drive program, has generated considerable interest in the electric mobility sector.
Convergence Energy Services Ltd. (CESL) is set to oversee the tender process, aiming to select operators for intra-city electric buses across nine major Indian cities, including Kolkata, Bengaluru, Chennai, Hyderabad, Pune, Mumbai, Surat, Ahmedabad, and New Delhi. The central government plans to allocate approximately ₹3,000 crore in subsidies to support the procurement of these electric buses.
The Ministry of Heavy Industries has established a maximum subsidy limit of ₹35 lakh per electric bus, encouraging states to apply for 12-meter buses suitable for urban operations. This initiative is part of the broader PM E-Drive scheme, launched in September 2024 with a total budget of ₹10,900 crore, and is scheduled to run until March 2026.
Notably, JBM Ecolife Mobility, a subsidiary of JBM Auto, secured a substantial ₹5,500 crore contract under the PM eBus Seva Scheme-II earlier this year, highlighting the company’s growing footprint in the electric bus segment.
Market analysts have observed strong institutional buying in JBM Auto shares, with the stock emerging from a 30-session bullish flag pattern and a significant 1100% increase in trading volume over the 50-day average. Anshul Jain, Head of Research at Lakshmishree Investment and Securities, indicated that a sustained move above ₹690 could confirm a breakout, potentially propelling the stock towards the weekly swing high of ₹800.
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