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Check Before You Invest : Jash Engineering Ltd

BSE: 544402 NSE: JASH ISIN: INE039O01029
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does Jash Engineering Ltd belong to?
Jash Engineering Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is Jash Engineering Ltd a good quality company?
Jash Engineering Ltd is a good quality company, based on a consistently good 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 Jash Engineering Ltd undervalued or overvalued?
Jash Engineering 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 44.81 44.44
Price to Book 5.81 6.70
Price to Sales 5.29 5.80
EV to EBITDA 28.34 28.82
Q.4 Is Jash Engineering Ltd a good buy now?
Jash Engineering Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 Jash Engineering Ltd?
Jash Engineering Ltd revenue growth is 37.5% for FY-2025, which is above its 5-year CAGR of 18.15%, indicating faster growth.

Q.2 Gross Profit margin of Jash Engineering Ltd?
Jash Engineering Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.5% for FY-2025, which is in line with its 5-year median of 19.4%, indicating stable margins.

Q.3 Operating Profit Margin of Jash Engineering Ltd?
Jash Engineering Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.75% for FY-2025, which is in line with its 5-year median of 19.9% indicating stable margins.

Q.4 Net Profit Margin of Jash Engineering Ltd?
Jash Engineering Ltd Net Profit Margin is 14.55% for FY-2025, is in line with its 5-year median of 14.51%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 19.5 19.4
Operating Profit Margin (%) 19.75 19.9
Net Profit Margin (%) 14.55 14.51

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Jash Engineering Ltd?
Jash Engineering Ltd Return on Asset is 12.17%, which is above its 5-year historical median of 10.24%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Jash Engineering Ltd?
Jash Engineering Ltd Return on capital employed is 22.25% for FY-2025, which is above its 5-year historical median of 19.15%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Jash Engineering Ltd?
Jash Engineering Ltd Return on equity is 19.36% for FY-2025, which is above its 5-year historical median of 17.84%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Jash Engineering Ltd?
Jash Engineering Ltd Cash conversion cycle is 165 days, below its 5-year historical median of 189 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 (x) 0.84 0.72
ROE (%) 19.36 17.84
ROCE (%) 22.25 19.15
Cash Conversion Cycle 165 days 189 days

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

Q.9 Debt to Equity ratio of Jash Engineering Ltd?
Jash Engineering Ltd Debt-to-Equity ratio is 0.16, which is lower the industry average of 0.18, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Jash Engineering Ltd?
Jash Engineering Ltd Debt to cash flow from operations is 0.99, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Jash Engineering Ltd?

Q.1 Promoter shareholding and pledge status of Jash Engineering Ltd?
Promoters hold 43.24% of the Jash Engineering Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Jash Engineering Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Jash Engineering Ltd vs industry peers?
Jash Engineering Ltd revenue CAGR is 18.15%, compared to the industry median CAGR of 3.04%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 37.5 3
Gross Profit Growth (%) 38.8 23.6
Operating Profit Growth (%) 34.3 21.7
Net Profit Growth (%) 38 27.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.84 0.89
ROE (%) 19.36 12.09
ROCE (%) 22.25 14.64
Cash Conversion Cycle (days) 164.83 98

Valuation & price assessment

Q.1 Stock return of Jash Engineering Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of -2.15% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- -2.2% -27.5% -28.7%
Q.2 Valuation ratios of Jash Engineering Ltd vs historical?
The current P/E ratio of 44.81 is in line with than its historical median of 44.44, indicating that the stock is trading near 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 44.81 44.44 29.36
Price to Book 5.81 6.70 2.91
Price to Sales 5.29 5.80 2.93
EV to EBITDA 28.34 28.82 15.77

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