Shares of JBM Auto rose 9% to more than the seven-month high of Rs 516.45 in intraday trade on Tuesday; otherwise, the market was range bound. Shares of the auto parts and equipment company are at their highest level since May 6, 2022.

It has gained 26% in an otherwise volatile market over the past two weeks. The S&P BSE Sensex fell 3% over the same period. The stock hit an all-time high of Rs 676 on January 24, 2022.

JBM Auto clarified the increase in sales on December 20, saying sales of the company’s shares were purely market-driven.

“The company has made all required disclosures and has not withheld any material/price sensitive information that we believe would affect the behaviour of the stock’s trading volume,” the firm said.

On December 2, JBM Auto informed that JBM Ecolife Mobility Private Limited, a wholly-owned subsidiary of the company, has registered and established TL Ecolife Mobility Private Limited, a wholly-owned subsidiary, to carry out automotive business, but has yet to start its business operations.

In the first half (April-September) of the 2022-23 financial year (H1FY23), the company posted strong earnings, with consolidated profit after tax jumping 66% to Rs 621.9 crore. Operating income also rose 45.7% year-on-year to Rs 1,894 crore.

JBM Auto is in the automotive business, manufacturing and selling sheet metal components, tools, moulds and buses, including the sale of spare parts, accessories and bus maintenance contracts.

The Indian Electric Vehicle (EV) market is moderately consolidated with the presence of key players owing to cheap and readily available human resources. The start-ups are also expanding their reach by raising capital from investors and entering new greenfield cities. The company invested heavily in R&D and launched new models to strengthen its market position.

However, established players in the market are launching new models to gain a competitive advantage over other players.

JBM Auto is a complete business in the field of mobility based on end-to-end well-to-wheel solutions involving auto parts, tools and an entire transportation ecosystem.

While transportation has played an essential role in India’s past growth, it also poses a severe air pollution challenge, with half of the world’s 50 most polluted cities in India, a heavy reliance on oil imports, and fast-growing carbon emissions. Against this backdrop, electric vehicles are expected to play an essential role in India’s transport transformation this decade.

“The government is rapidly moving towards a shared connected and electric mobility ecosystem to achieve its goals on emission reduction, energy security and industrial growth. The management said that to promote EV adoption, the government launched several policy initiatives targeting an entire value chain at the national and state levels. Yet, from a market penetration perspective, India is at an early adoption stage compared to its ambitious target.”

The stock has been volatile over the past seven sessions, with intraday swings as high as 17%.