Shares of electric bus makers JBM Auto Ltd. and Olectra Greentech Ltd. surged during the last leg of trade on Wednesday after the 'PM eBus Sewa' received Union Cabinet approval to enhance city bus operations.
Under this scheme, priority will be given to the cities that have no organised bus services, Union Minister Anurag Thakur said.
Around 10,000 e-buses will be deployed on a public-private partnership model in 169 cities. Infrastructure will be upgraded in 181 cities under the Green Urban Mobility Initiatives, Thakur said.
The scheme's estimated total cost is Rs 57,613 crore, of which the Union government will contribute Rs 20,000 crore. The scheme will support bus operations for 10 years.
Shares of JBM Auto surged 10.13% to close at Rs 1,443.85 apiece after having jumped 12.42% to an intraday high of Rs 1,474 apiece, as compared with a 0.16% advance in the benchmark NSE Nifty 50.
The stock has risen 180% year-to-date. The total traded volume stood at 2.6 times its 30-day average. The relative strength index is at 61.
An analyst tracking JBM Auto maintains a 'sell' rating on the stock, according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 52.3%.
Shares of Olectra Greentech closed 8.76% higher at Rs 1,222.15 apiece, as compared with a 0.16% advance in the benchmark NSE Nifty 50. The stock rose as much as 10% to hit an intraday high of Rs 1,236.10 per share.
The stock has risen 147% year-to-date. The total traded volume stood at 1.1 times its 30-day average. The relative strength index was at 59.2. No analyst polled by Bloomberg tracks the stock.
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