Jayaswal Neco Industries Ltd Stock Analysis

BSE: 522285 | NSE: JAYNECOIND | Steel & Iron Products | Small Cap

BSE Share Price 02-Dec-2022 18:01
26.20 0.65 (2.54%)

DeciZen - Make an Informed Decision on Jayaswal Neco Inds

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Jayaswal Neco Inds Price Chart

P/E Ratio (SA) :
1.18
Market Cap :
2,544 Cr.
52-wk low :
20.1
52-wk high :
35.4
Bole Toh?

1. Is Jayaswal Neco Industries Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Jayaswal Neco Industries Ltd is a average quality company.

2. Is Jayaswal Neco Industries Ltd undervalued or overvalued?

The key valuation ratios of Jayaswal Neco Industries Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Jayaswal Neco Industries Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Jayaswal Neco Industries Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Jayaswal Neco Inds:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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.
Jayaswal Neco Industries Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 4.5%3.9%3.3%1.8%-1.3%-0.7%1.1%-12.8%2.8%33.5%-
Value Creation Index -0.7-0.7-0.8-0.9-1.1-1.1-0.9NANA1.4-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 2,5493,1613,0242,6422,5313,4774,2273,6323,7055,9596,155
YoY Gr. Rt. %-24%-4.3%-12.6%-4.2%37.4%21.5%-14.1%2%60.8%-
Adj EPS 0.61.21-0.7-7.3-7.8-6.9-17.3-8.810.722.3
YoY Gr. Rt. %-90.5%-13.3%-165.4%NANANANANANA-
BVPS (₹) 36.335.534.732.925.61811-12.6-21.318.920.6
Adj Net Profit 31.571.966.4-43.7-463-499-443-1,106-5591,0412,164
Cash Flow from Ops. 209184333498272260374313448860-
Debt/CF from Ops. 11.519.812.18.615.415.610.512.68.54.5-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 9.9%18.7%12.1%60.8%
Adj EPS 37%NANANA
BVPS -7-5.919.90
Share Price 6.9% 25% 93.8% 7.2%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 2.13.73.1-2-24.8-35.8-47.92075.151.5442.3113
Op. Profit Mgn % 12.712.811.88.5118.912.45.616.221.412.3
Net Profit Mgn % 1.22.32.2-1.7-18.3-14.4-10.5-30.5-15.117.535.2
Debt to Equity 1.31.71.822.63.55.6-4.9-2.82.11.8
Working Cap Days 261270292283234149118141137106128
Cash Conv. Cycle 7972798997817895947288

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 12.13%

Sales growth is good in last 4 quarters at 13.06%

Return on Equity has declined versus last 3 years average to 113.00%

Latest Financials - Jayaswal Neco Industries Ltd.

Standalone Consolidated
TTM EPS (₹) 22.3 -1
TTM Sales (₹ Cr.) 6,155 2,633
BVPS (₹.) 20.6 0
Reserves (₹ Cr.) 1,026 1,482
P/BV 1.27 0.00
PE 1.18 0.00
From the Market
52 Week Low / High (₹) 20.05 / 35.40
All Time Low / High (₹) 1.70 / 120.00
Market Cap (₹ Cr.) 2,544
Equity (₹ Cr.) 971
Face Value (₹) 10
Industry PE 10.1

Management X-Ray of Jayaswal Neco Inds :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *13.0313.0313.0313.0313.0313.039.420.00100.00100.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Jayaswal Neco Inds

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Jayaswal Neco Industries Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Jayaswal Neco Inds on 02-Dec-2022 18:01 is : 26.20.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 02-Dec-2022 18:01 the market cap of Jayaswal Neco Inds stood at ₹ 2,544.
The latest PE ratio of Jayaswal Neco Inds as of 02-Dec-2022 18:01 is 1.18.
The latest PB ratio of Jayaswal Neco Inds as of 02-Dec-2022 18:01 is 1.27
The 52-week high of Jayaswal Neco Inds is ₹ 35.40 and the 52-week low is ₹ 20.05.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Jayaswal Neco Inds is ₹ 6,155 ( Cr.) .

About Jayaswal Neco Industries Ltd

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

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