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Jayaswal Neco Industries Ltd. Stock Analysis

Small Cap
Evaluated by 251 users | BSE: 522285 | NSE: JAYNECOIND |
Steel & Iron Products
Jayaswal Neco Industries Limited, a NECO group company, promoted by B L Shaw, the chairman of the company, It is one of India’s largest industrial groups and has its humble origin with a simple grey iron foundry established at Nagpur in 1976. The company was formerly known as Jayaswals...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 9.4%10.69%7.72%4.53%3.9%3.27%1.8%-1.27%-0.7%1.13%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,7872,2612,5902,5493,1613,0242,6422,5313,4774,227
Y-o-Y Gr. Rt.-26.5%14.6%-1.6%24%-4.3%-12.6%-4.2%37.4%21.5%
Adjusted EPS (Rs.) 2.53.831.730.631.21.04-0.68-7.25-7.82-6.94
Y-o-Y Gr. Rt.-53.2%-54.8%-63.6%90.5%-13.3%-165.4%NANANA
Book Value per Share (Rs.) 25.0429.4634.1336.3335.4834.7332.8525.641810.95
Adjusted Net Profit 59.39662.331.571.966.4-43.7-463-499-443
Net Op. Cash Flow (Rs. Cr.) 70.6410164209184333498272260374
Debt to Cash Flow from Ops 16.022.9610.211.4719.8212.18.5815.4215.5610.54
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Jayaswal Neco Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 10%6%17%21.5%
Adjusted EPS -212%-242.1%NANA
Book Value per Share -8.8-21-30.7-39.2
Share Price -18.1% -17.3% -27.8% -19.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 10.0314.416.332.083.663.06-2.03-24.78-35.84-47.91
Operating Profit Margin (%) 16.2415.7713.5712.6612.8111.848.49118.8612.37
Net Profit Margin (%) 3.324.242.41.242.282.2-1.65-18.29-14.36-10.48
Debt to Equity 1.911.641.361.331.721.822.042.563.515.63
Working Capital Days 140161196261270292283234149118
Cash Conversion Cycle 57596079727989978178
Entity Percentage Holding
Promoters 68.79%
Institutions 0.01%
Non-Institutions 31.21%
Pledged *13.7113.7113.0313.0313.0313.0313.0313.0313.0313.03
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Jayaswal Neco Industries Ltd.'s performance infers:

Jayaswal Neco Industries Ltd. earnings have declined by -242.1%, whereas share price has depreciated -17.3% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Jayaswal Neco Industries Ltd. share prices over the last 10 years. Here is what we found out:

Jayaswal Neco Industries Ltd. share price has depreciated -22.2% annually over the past ten years.

Jayaswal Neco Industries Limited, a NECO group company, promoted by B L Shaw, the chairman of the company, It is one of India’s largest industrial groups and has its humble origin with a simple grey iron foundry established at Nagpur in 1976. The company was formerly known as Jayaswals Neco Limited and changed its name to Jayaswal Neco Industries Limited in November 2007.

Today, the group is one of the largest iron and steel & ferrous and non ferrous casting manufacturer,

Jayaswal Neco Industries Limited, a NECO group company, promoted by B L Shaw, the chairman of the company, It is one of India’s largest industrial groups and has its humble origin with a simple grey iron foundry established at Nagpur in 1976. The company was formerly known as Jayaswals Neco Limited and changed its name to Jayaswal Neco Industries Limited in November 2007.

Today, the group is one of the largest iron and steel & ferrous and non ferrous casting manufacturer, with an installed capacity to produce 1 million TPA of iron and steel & more then 175,000 TPA of ferrous and non ferrous castings. NECO group has 16 manufacturing units and 5 group companies.

Jayaswal Neco Industries Limited manufactures and sells iron and steel, and ferrous and non ferrous castings in India. The company’s Steel segment engages in the manufacture and sale of pig iron, billets, rolled products, and sponge iron. This segment offers its products to the automobile, auto component, transmission line tower, and seamless tube and flange manufacturers.

The company’s iron and steel castings segment manufactures and sells engineering and automotive castings, including brake drums, clutch housing, hubs, gear box housing, suspension items, housings, differential housing, pistons, railway inserts, valve body, pipe fittings, and other engineering castings.

Jayaswal Neco produces iron and steel products for catering to the need of automobile, auto component, transmission line tower, seamless tube & flange manufacturers. The product range includes HR & CR Sheets and coils, bars & rods apart from carbon & alloy steel.

The plant was established in collaboration with the China Shougang International Trade & Engineering Corporation and is located on a 1200 acre land at Raipur in Chhattisgarh, the steel belt of the country. It has a 15 km long internal railway siding.

The availability of skilled labour and proximity to raw materials like iron ore and thermal coal are cost competitive advantages for the company. The sales are spread across the country. Currently the entire requirement of thermal coal is met through captive coal mines.

The plant has an installed capacity for producing 600,000 TPA of pig iron, 480,000 TPA of sinter and 300,000 TPA of steel billets. It is in the process of commissioning Wire Rod and Bar Mill of 450,000 TPA capacity.This plant is equipped with a non recovery type coke oven plant of 100,000 TPA capacity with stamp charging system. The blast furnace has a capacity to produce to 600,000 TPA of basic grade as well as foundry grade high quality pig iron.

The steel melt shop at the plant produces steel billets of special alloy steel, free cutting, ball bearing, high tensile steel for transmission towers and special steel round billets for seamless pipe manufacture.

The steel plant at Raipur also has 2 rotary kilns for manufacturing sponge iron having capacity of 255,000 TPA with a captive generation power plant.The plant has set up captive power plants which include a waste heat recovery based 15.5 MW power plant; the company has power generation capacity of 45 MW and is in the process of adding further capacity.

Product range of the company includes

  • Rounds in carbon, alloy, spring, free cutting, and semi free cutting, cold heading quality for bright bar and forging industries.
  • Round cornered square (rcs) in carbon, alloy, semi free cutting, boron steel etc for forging industries.
  • Spring steel flats (rectangular bar) in spring steel grades like silico manganese, chrome vanadium, chrome manganese, and chrome manganese boron steel for spring leaf manufacturing industries.
  • Wire rod in carbon, alloy, free cutting, semi free cutting, cold heading quality for component, bright bar and fastener industries Hexagon in carbon, free cutting, semi free cutting, alloy steel for fastener industries.
  • As cast rounds, blooms grade: carbon steel and alloy steel for  seamless tube industries as cast billet /blooms (rcs) grade: carbon, alloy, free cutting, semi free cutting, ball bearing, chq, spring steel, for re-rollers and forging application.

Different Divisions of the company are:

  • Steel Plant Division
  • Centri Cast Division
  • Automotive Casting Divn. I, II
  • Construction Casting Division

Recent developments

Jayaswal Neco Industries at the various meetings of the secured creditors of the company held on June 9, 2009, in accordance with the directions of the High Court of Bombay, Nagpur Bench, Nagpur, has approved, all the three Schemes of Arrangement (i) The Company and Inertia Iron and Steel Industries Pvt. Ltd (ii) The Company and Abhijeet Infrastructure Ltd (iii) The Company and Corporate Ispat Alloys Ltd

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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