JBM Auto and Olectra Greentech shares rose 8–12% on the trading day on hopes of winning new orders, with the government to issue a tender for 10,000 electric buses. These tenders are likely to be issued next month under the PM E-Drive program.
Convergence Energy Services Ltd., or CESL, will be responsible for conducting a tender for choosing intra-city electric bus operator for nine cities. The central government will also be providing approximately ₹3,000 crore as subsidy towards the procurement of such buses.
Kolkata, Bengaluru, Chennai, Hyderabad, Pune, Mumbai, Surat, Ahmedabad, and New Delhi are some of the nine cities that are included.
The Ministry of Heavy Industries fixes the maximum subsidy limit of ₹35 lakh per electric bus. The majority of states have made applications for 12-meter electric buses for city operations. As of budget of ₹10,900 crore, the government initiated the PM E-Drive scheme in September 2024 and it would last until March 2026.
JBM Ecolife Mobility, a unit of JBM Auto, received a ₹5,500 crore deal under the PM eBus Seva Scheme-II in February of this year.
The share price of JBM Auto is coming out of a 30-session bullish flag pattern, backed by a massive 1100% rise in volume over the 50-day average, which is a clear sign of strong institutional buying, says Anshul Jain, Head of Research, Lakshmishree Investment and Securities. The breakout would be confirmed and the door would be opened for a rally to the weekly swing high of ₹800 if there is a sustained move above ₹690. With volumes and momentum firmly in favor of the bulls, this is a high-conviction setup for short-term profits.
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