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Check Before You Invest : Jagan Lamps Ltd

BSE: 530711 NSE: ISIN: INE144C01014
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Jagan Lamps Ltd belong to?
Jagan Lamps Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is Jagan Lamps Ltd a good quality company?
Jagan Lamps Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Jagan Lamps Ltd undervalued or overvalued?
Jagan Lamps Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 15.26 18.74
Price to Book 1.15 1.72
Price to Sales 0.88 1.09
EV to EBITDA 8.98 10.12
Q.4 Is Jagan Lamps Ltd a good buy now?
Jagan Lamps Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Jagan Lamps Ltd?
Jagan Lamps Ltd revenue growth is -2.7% for FY-2025, which is below its 5-year CAGR of 16.57%, indicating slower growth.

Q.2 Gross Profit margin of Jagan Lamps Ltd?
Jagan Lamps Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.3% for FY-2025, which is in line with its 5-year median of 10.3%, indicating stable margins.

Q.3 Operating Profit Margin of Jagan Lamps Ltd?
Jagan Lamps Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.13% for FY-2025, which is above its 5-year median of 9.45% indicating increasing margins.

Q.4 Net Profit Margin of Jagan Lamps Ltd?
Jagan Lamps Ltd Net Profit Margin is 5.7% for FY-2025, is in line with its 5-year median of 5.7%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 10.3 10.3
Operating Profit Margin (%) 11.13 9.45
Net Profit Margin (%) 5.7 5.7

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Jagan Lamps Ltd?
Jagan Lamps Ltd Return on Asset is 5.93%, which is below its 5-year historical median of 7.02%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Jagan Lamps Ltd?
Jagan Lamps Ltd Return on capital employed is 12.08% for FY-2025, which is in line with its 5-year historical median of 12.56%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Jagan Lamps Ltd?
Jagan Lamps Ltd Return on equity is 8.93% for FY-2025, which is below its 5-year historical median of 10.16%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Jagan Lamps Ltd?
Jagan Lamps Ltd Cash conversion cycle is 162 days, above its 5-year historical median of 107 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.04 1.22
ROE (%) 8.93 10.16
ROCE (%) 12.08 12.56
Cash Conversion Cycle 162 days 107 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Jagan Lamps Ltd?
Jagan Lamps Ltd Debt-to-Equity ratio is 0.28, which is lower the industry average of 0.40, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Jagan Lamps Ltd?
Jagan Lamps Ltd Debt to cash flow from operations is -3.7, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Jagan Lamps Ltd?

Q.1 Promoter shareholding and pledge status of Jagan Lamps Ltd?
Promoters hold 57.78% of the Jagan Lamps Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Jagan Lamps Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Jagan Lamps Ltd vs industry peers?
Jagan Lamps Ltd revenue CAGR is 16.57%, compared to the industry median CAGR of 11.89%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -2.7 11.9
Gross Profit Growth (%) -2.7 16.2
Operating Profit Growth (%) 14.5 14.7
Net Profit Growth (%) -3.4 20.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.04 1.24
ROE (%) 8.93 11.65
ROCE (%) 12.08 13.5
Cash Conversion Cycle (days) 161.51 46

Valuation & price assessment

Q.1 Stock return of Jagan Lamps Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 20% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
20% 10.3% -2.8% -15.5%
Q.2 Valuation ratios of Jagan Lamps Ltd vs historical?
The current P/E ratio of 15.26 is lower than its historical median of 18.74, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 15.26 18.74 28.71
Price to Book 1.15 1.72 2.99
Price to Sales 0.88 1.09 1.35
EV to EBITDA 8.98 10.12 11.85

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