On Wednesday, the stocks of JBM Auto and Olectra Greentech experienced remarkable gains, soaring between 8% and 12% during trading hours. This surge can be attributed to optimistic projections regarding new contracts, as reported by various sources. Anticipation is building around a forthcoming government tender for 10,000 electric buses slated for release next month, part of the PM E-Drive initiative.
Government Initiative for Electric Buses
The Convergence Energy Services Ltd (CESL) will manage the tender process to appoint an operator for intra-city electric buses across nine major cities in India. The central government is set to provide an impressive subsidy of around ₹3,000 crore to facilitate the purchase of these eco-friendly vehicles. The cities benefiting from this initiative include:
- Bengaluru
- Chennai
- Hyderabad
- Pune
- Mumbai
- Surat
- Ahmedabad
- New Delhi
- Kolkata
The Ministry of Heavy Industries has also established a maximum subsidy limit of ₹35 lakh for each electric bus, with many states showing a preference for 12-meter buses suitable for urban transit. The PM E-Drive scheme, initiated in September 2024, has a budget of ₹10,900 crore, effective until March 2026.
JBM Auto’s Recent Contracts
Earlier this year, in February, JBM Auto’s subsidiary, JBM Ecolife Mobility, secured a significant contract worth ₹5,500 crore under the PM eBus Seva Scheme-II. This momentum reflects the growing interest and investment in electric mobility solutions across India.
Technical Analysis of JBM Auto and Olectra Greentech
In today’s trading session, JBM Auto shares opened at an intraday high of ₹634.50 on the BSE, with a fluctuating range throughout the day. According to Anshul Jain, Head of Research at Lakshmishree Investment and Securities, JBM Auto’s stock is breaking out of a 30-session bullish flag pattern, supported by an impressive 1,100% increase in volume compared to the average over the past 50 days.
- An upward movement beyond ₹690 could signal a breakout, potentially leading to a rally towards the weekly swing high of ₹800.
- Immediate support is identified at ₹650, making this a promising setup for investors.
Olectra Greentech’s Market Performance
Olectra Greentech also displayed strong performance today, opening at ₹1,194.90 per share and reaching a high of ₹1,274.60. Anshul Jain noted that Olectra has formed a bullish double bottom pattern at the significant weekly swing low of ₹1,017, following a 55% correction from its all-time highs over the past 59 weeks.
- A breakout past ₹1,300 will validate this bullish trend and could propel the stock towards the ₹1,600 mark, representing a 50% retracement of its previous decline.
- Short-term support is observed around ₹1,100, with potential upward movement towards ₹1,450.
Conclusion
Both JBM Auto and Olectra Greentech are positioned favorably in the electric vehicle market, buoyed by government initiatives and robust trading activity. Investors should watch these stocks closely for potential upward trends, as the electric mobility landscape continues to evolve in India. For those keen on market movements, the ongoing developments present intriguing investment opportunities.
