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Check Before You Invest : Jaiprakash Power Ventures Ltd

BSE: 532627 NSE: JPPOWER ISIN: INE351F01018
  |   Sector:  Power   |   Industry:  Power Generation/Distribution

Snapshot

Q.1 Which industry/sub-sector does Jaiprakash Power Ventures Ltd belong to?
Jaiprakash Power Ventures Ltd belongs to the Power sector, operating specifically within the Power Generation/Distribution segment.
Q.2 Is Jaiprakash Power Ventures Ltd a good quality company?
Jaiprakash Power Ventures Ltd is a average quality company, based on a somewhat consistent 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 Jaiprakash Power Ventures Ltd undervalued or overvalued?
Jaiprakash Power Ventures 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 28.83 15.42
Price to Book 1.43 0.82
Price to Sales 2.29 1.60
EV to EBITDA 8.89 6.68
Q.4 Is Jaiprakash Power Ventures Ltd a good buy now?
Jaiprakash Power Ventures Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Jaiprakash Power Ventures Ltd?
Jaiprakash Power Ventures Ltd revenue growth is -19.2% for FY-2025, which is below its 5-year CAGR of 10.71%, indicating slower growth.

Q.2 Gross Profit margin of Jaiprakash Power Ventures Ltd?
Jaiprakash Power Ventures Ltd Gross profit margin which is the profit after deduction of direct costs, is 30.8% for FY-2025, which is above its 5-year median of 21.6%, indicating increasing margins.

Q.3 Operating Profit Margin of Jaiprakash Power Ventures Ltd?
Jaiprakash Power Ventures Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 34.59% for FY-2025, which is in line with its 5-year median of 33.08% indicating stable margins.

Q.4 Net Profit Margin of Jaiprakash Power Ventures Ltd?
Jaiprakash Power Ventures Ltd Net Profit Margin is 14.84% for FY-2025, is above its 5-year median of 10.15%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 30.8 21.6
Operating Profit Margin (%) 34.59 33.08
Net Profit Margin (%) 14.84 10.15

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Jaiprakash Power Ventures Ltd?
Jaiprakash Power Ventures Ltd Return on Asset is 4.61%, which is above its 5-year historical median of 2.12%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Jaiprakash Power Ventures Ltd?
Jaiprakash Power Ventures Ltd Return on capital employed is 10.26% for FY-2025, which is above its 5-year historical median of 6.62%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.7 Return on Equity (ROE) of Jaiprakash Power Ventures Ltd?
Jaiprakash Power Ventures Ltd Return on equity is 10.05% for FY-2025, which is above its 5-year historical median of 5.54%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Jaiprakash Power Ventures Ltd?
Jaiprakash Power Ventures Ltd Cash conversion cycle is 81 days, above its 5-year historical median of 72 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) 0.31 0.31
ROE (%) 10.05 5.54
ROCE (%) 10.26 6.62
Cash Conversion Cycle 81 days 72 days

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

Q.9 Debt to Equity ratio of Jaiprakash Power Ventures Ltd?
Jaiprakash Power Ventures Ltd Debt-to-Equity ratio is 0.31, which is lower the industry average of 0.44, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Jaiprakash Power Ventures Ltd?
Jaiprakash Power Ventures Ltd Debt to cash flow from operations is 2.2, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Jaiprakash Power Ventures Ltd?

Q.1 Promoter shareholding and pledge status of Jaiprakash Power Ventures Ltd?
Promoters hold 24.00% of the Jaiprakash Power Ventures Ltd, with 72.99% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Jaiprakash Power Ventures Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Jaiprakash Power Ventures Ltd vs industry peers?
Jaiprakash Power Ventures Ltd revenue CAGR is 10.71%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -19.2 -
Gross Profit Growth (%) -22.5 -0.1
Operating Profit Growth (%) -17 0.1
Net Profit Growth (%) 18.2 -3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.31 0.12
ROE (%) 10.05 2.44
ROCE (%) 10.26 4.39
Cash Conversion Cycle (days) 81.02 62

Valuation & price assessment

Q.1 Stock return of Jaiprakash Power Ventures Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 16.2% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
16.2% 39.4% 48.9% 28.4%
Q.2 Valuation ratios of Jaiprakash Power Ventures Ltd vs historical?
The current P/E ratio of 28.83 is higher than its historical median of 15.42, indicating that the stock is trading above 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 28.83 15.42 27.37
Price to Book 1.43 0.82 1.82
Price to Sales 2.29 1.60 6.75
EV to EBITDA 8.89 6.68 13.61

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