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Check Before You Invest : Jay Bharat Maruti Ltd

BSE: 520066 NSE: JAYBARMARU ISIN: INE571B01036
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Jay Bharat Maruti Ltd belong to?
Jay Bharat Maruti Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is Jay Bharat Maruti Ltd a good quality company?
Jay Bharat Maruti 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 Jay Bharat Maruti Ltd undervalued or overvalued?
Jay Bharat Maruti 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 9.28 24.70
Price to Book 1.85 1.70
Price to Sales 0.5 0.42
EV to EBITDA 6 7.28
Q.4 Is Jay Bharat Maruti Ltd a good buy now?
Jay Bharat Maruti 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 Jay Bharat Maruti Ltd?
Jay Bharat Maruti Ltd revenue growth is -0.1% for FY-2025, which is below its 5-year CAGR of 6.67%, indicating slower growth.

Q.2 Gross Profit margin of Jay Bharat Maruti Ltd?
Jay Bharat Maruti Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.8% for FY-2025, which is in line with its 5-year median of 5.8%, indicating stable margins.

Q.3 Operating Profit Margin of Jay Bharat Maruti Ltd?
Jay Bharat Maruti Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.19% for FY-2025, which is in line with its 5-year median of 7.26% indicating stable margins.

Q.4 Net Profit Margin of Jay Bharat Maruti Ltd?
Jay Bharat Maruti Ltd Net Profit Margin is 1.39% for FY-2025, is in line with its 5-year median of 1.39%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 5.8 5.8
Operating Profit Margin (%) 7.19 7.26
Net Profit Margin (%) 1.39 1.39

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Jay Bharat Maruti Ltd?
Jay Bharat Maruti Ltd Return on Asset is 1.97%, which is below its 5-year historical median of 2.15%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Jay Bharat Maruti Ltd?
Jay Bharat Maruti Ltd Return on capital employed is 8.83% for FY-2025, which is in line with its 5-year historical median of 9%. 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 Jay Bharat Maruti Ltd?
Jay Bharat Maruti Ltd Return on equity is 5.8% for FY-2025, which is in line with its 5-year historical median of 5.97%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Jay Bharat Maruti Ltd?
Jay Bharat Maruti Ltd Cash conversion cycle is 4 days, above its 5-year historical median of 3 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) 1.42 1.61
ROE (%) 5.8 5.97
ROCE (%) 8.83 9
Cash Conversion Cycle 4 days 3 days

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

Q.9 Debt to Equity ratio of Jay Bharat Maruti Ltd?
Jay Bharat Maruti Ltd Debt-to-Equity ratio is 0.81, which is above the industry average of 0.40, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Jay Bharat Maruti Ltd?
Jay Bharat Maruti Ltd Debt to cash flow from operations is 2.27, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Jay Bharat Maruti Ltd?

Q.1 Promoter shareholding and pledge status of Jay Bharat Maruti Ltd?
Promoters hold 59.35% of the Jay Bharat Maruti Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Jay Bharat Maruti Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Jay Bharat Maruti Ltd vs industry peers?
Jay Bharat Maruti Ltd revenue CAGR is 6.67%, compared to the industry median CAGR of 11.89%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -0.1 11.9
Gross Profit Growth (%) 0.8 16.2
Operating Profit Growth (%) -1.2 14.7
Net Profit Growth (%) 3.2 20.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.42 1.24
ROE (%) 5.8 11.65
ROCE (%) 8.83 13.5
Cash Conversion Cycle (days) 4.07 46

Valuation & price assessment

Q.1 Stock return of Jay Bharat Maruti Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 14.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
14.5% 13.4% 20.1% 41%
Q.2 Valuation ratios of Jay Bharat Maruti Ltd vs historical?
The current P/E ratio of 9.28 is lower than its historical median of 24.70, 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 9.28 24.70 28.71
Price to Book 1.85 1.70 2.99
Price to Sales 0.5 0.42 1.35
EV to EBITDA 6 7.28 11.85

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