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Check Before You Invest : JNK India Ltd

BSE: 544167 NSE: JNKINDIA ISIN: INE0OAF01028
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does JNK India Ltd belong to?
JNK India Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is JNK India Ltd a good quality company?
JNK India 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 JNK India Ltd undervalued or overvalued?
JNK India Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than 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 43.26 58.76
Price to Book 3.75 3.97
Price to Sales 3.12 4.07
EV to EBITDA 21.11 26.55
Q.4 Is JNK India Ltd a good buy now?
JNK India 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.

Q.1 Gross Profit margin of JNK India Ltd?
JNK India Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.6% for FY-2025, which is below its 5-year median of 17.5%, indicating decreasing margins.

Q.2 Operating Profit Margin of JNK India Ltd?
JNK India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.01% for FY-2025, which is below its 5-year median of 18.53% indicating decreasing margins.

Q.3 Net Profit Margin of JNK India Ltd?
JNK India Ltd Net Profit Margin is 6.37% for FY-2025, is below its 5-year median of 12.43%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 10.6 17.5
Operating Profit Margin (%) 9.01 18.53
Net Profit Margin (%) 6.37 12.43

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of JNK India Ltd?
JNK India Ltd Return on Asset is 4.66%, which is below its 5-year historical median of 14.6%, indicating deteriorated asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of JNK India Ltd?
JNK India Ltd Return on capital employed is 15.42% for FY-2025, which is below its 5-year historical median of 53.18%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of JNK India Ltd?
JNK India Ltd Return on equity is 8.82% for FY-2025, which is below its 5-year historical median of 44.76%, indicating the business is making worse use of its shareholders capital.

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

Q.7 Debt to Equity ratio of JNK India Ltd?
JNK India Ltd Debt-to-Equity ratio is 0.01, which is lower the industry average of 0.18, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of JNK India Ltd?
JNK India Ltd Debt to cash flow from operations is -0.07, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of JNK India Ltd?

Q.1 Promoter shareholding and pledge status of JNK India Ltd?
Promoters hold 67.79% of the JNK India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does JNK India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of JNK India Ltd vs industry peers?
JNK India Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 3.61%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - 3.6
Gross Profit Growth (%) -46.8 23
Operating Profit Growth (%) -57.4 21.7
Net Profit Growth (%) -51.6 26.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.73 0.89
ROE (%) 8.82 11.8
ROCE (%) 15.42 14.41
Cash Conversion Cycle (days) 150 99

Valuation & price assessment

Q.1 Stock return of JNK India Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 6.32% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - 6.3%
Q.2 Valuation ratios of JNK India Ltd vs historical?
The current P/E ratio of 43.26 is lower than its historical median of 58.76, 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 43.26 58.76 29.36
Price to Book 3.75 3.97 2.91
Price to Sales 3.12 4.07 2.93
EV to EBITDA 21.11 26.55 15.77

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