Check Before You Invest : Jainex Aamcol Ltd

BSE: 505212 NSE: ISIN: INE280F01019

| Sector: Automobiles | Industry: Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Jainex Aamcol Ltd belong to?

Jainex Aamcol Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.

Q.2 Is Jainex Aamcol Ltd a good quality company?

Jainex Aamcol Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Jainex Aamcol Ltd undervalued or overvalued?

Jainex Aamcol Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Jainex Aamcol Ltd a good buy now?

Jainex Aamcol 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

Q.1 Revenue growth of Jainex Aamcol Ltd?

Jainex Aamcol Ltd revenue growth is 13.6% for FY-2025, which is above its 5-year CAGR of 11.72%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Jainex Aamcol Ltd?

Jainex Aamcol Ltd Return on capital employed is 5.63% for FY-2025, which is below its 5-year historical median of 10.86%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Jainex Aamcol Ltd?

Jainex Aamcol Ltd Return on Asset is 1.78%, which is below its 5-year historical median of 3.35%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Jainex Aamcol Ltd?

Jainex Aamcol Ltd Return on equity is 4.87% for FY-2025, which is below its 5-year historical median of 7.8%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Jainex Aamcol Ltd?

Jainex Aamcol Ltd Cash conversion cycle is 96 days, below its 5-year historical median of 119 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.25	1.32
ROE	4.87	7.8
ROCE	5.63	10.86
Cash Conversion Cycle	96 days	119 days

Q.6 Gross Profit margin of Jainex Aamcol Ltd?

Jainex Aamcol Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.4% for FY-2025, which is below its 5-year median of 10%, indicating decreasing margins.

Q.7 Operating Profit Margin of Jainex Aamcol Ltd?

Jainex Aamcol Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.74% for FY-2025, which is below its 5-year median of 13.68% indicating decreasing margins.

Q.8 Net Profit Margin of Jainex Aamcol Ltd?

Jainex Aamcol Ltd Net Profit Margin is 1.45% for FY-2025, is below with its 5-year median of 2.48%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	4.4	10
Operating Profit Margin	5.74	13.68
Net Profit Margin	1.45	2.48

Q.9 Debt to Equity ratio of Jainex Aamcol Ltd?

Jainex Aamcol Ltd Debt-to-Equity ratio is 1.32, which is above with the industry average of 0.46, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Jainex Aamcol Ltd?

Jainex Aamcol Ltd Debt to cash flow from operations is -7.8, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Jainex Aamcol Ltd?

Promoters hold 51.48% of the Jainex Aamcol Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Jainex Aamcol Ltd vs industry peers?

Jainex Aamcol Ltd revenue CAGR is 11.72%, compared to the industry median CAGR of 12.41%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	13.6	12.4
Gross Profit Growth	-22.9	16.2
Operating Profit Growth	-24	14.7
Net Profit Growth	-34.6	20

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.25	1.23
ROE	4.87	12.01
ROCE	5.63	13.5
Cash Conversion Cycle (days)	95.86	47

Valuation & price assessment

Q.1 Stock return of Jainex Aamcol Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 16.3% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	16.3%	29.2%	7%	-11.2%

Q.3 Valuation ratios of Jainex Aamcol Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 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	35.31	30.48	28.80
Price to Book	1.62	3.47	2.99
Price to Sales	1.11	1.11	1.35
EV to EBITDA	17.69	12.60	11.86

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