JG Chemicals Ltd - Stock Valuation and Financial Performance

BSE: 544138 | NSE: JGCHEM | Chemicals | Small Cap

JG Chemicals Share Price

435.45 -23.05 -5.03%
as on 12-Dec'24 16:59

DeciZen - make an informed investing decision on JG Chemicals

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

JG Chemicals stock performance -

mw4me loader
P/E Ratio (SA):
158.19
Market Cap:
1,706.4 Cr.
52-wk low:
171
52-wk high:
484

Is JG Chemicals Ltd an attractive stock to invest in?

1. Is JG Chemicals Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that JG Chemicals Ltd is a good quality company.

2. Is JG Chemicals Ltd undervalued or overvalued?

The key valuation ratios of JG Chemicals Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is JG Chemicals Ltd a good buy now?

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

10 Year X-Ray of JG Chemicals:

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.
JG Chemicals Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 24.5%23.1%29.9%40%27.1%17.9%14%21.3%28.3%7.3%-
Value Creation
Index
0.80.71.11.90.90.300.51.0-0.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 177180228252258226188257335245245
Sales YoY Gr.-1.9%26.4%10.4%2.4%-12.3%-16.9%36.6%30.7%-27%-
Adj EPS 1.51.52.94.73.72.71.93.76.62.42.8
YoY Gr.--0.7%100.7%62.9%-21.1%-26.7%-30.3%93.2%78.6%-63%-
BVPS (₹) 56.69.614.819.122.424.529.537.473.978.1
Adj Net
Profit
4.64.69.21511.98.76.111.720.99.611
Cash Flow from Ops. 5.51.3-7.519.4-3.928.24.1-3.16.127.7-
Debt/CF from Ops. 5.324.2-5.71.5-9.60.75.4-7.72.20-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 3.7%-1%9.2%-27%
Adj EPS 5.9%-8.2%8.5%-63%
BVPS34.8%31.1%44.5%97.4%
Share Price - - - -

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
33.824.935.938.922.113.28.113.719.74.73.6
Op. Profit
Mgn %
6.25.97.911.17.34.15.45.78.44.45
Net Profit
Mgn %
2.62.6464.63.93.24.66.23.94.4
Debt to
Equity
1.81.41.40.60.60.30.30.30.100
Working Cap
Days
8794100112106124161133121176168
Cash Conv.
Cycle
6772778779841029684103159

Recent Performance Summary

No data to display

Return on Equity has declined versus last 3 years average to 3.60%

Sales growth has been subdued in last 3 years 9.21%

Net Profit has been subdued in last 3 years 8.51%

Sales growth is not so good in last 4 quarters at 1.36%

Latest Financials - JG Chemicals Ltd.

Standalone Consolidated
TTM EPS (₹) 2.8 7.9
TTM Sales (₹ Cr.) 245 668
BVPS (₹.) 78.1 111.3
Reserves (₹ Cr.) 267 397
P/BV 5.58 3.91
PE 158.19 55.30
From the Market
52 Week Low / High (₹) 171.00 / 484.00
All Time Low / High (₹) 171.00 / 484.00
Market Cap (₹ Cr.) 1,706
Equity (₹ Cr.) 39.2
Face Value (₹) 10
Industry PE 59.8

Management X-Ray of JG Chemicals:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Login/Register to view analysis.

Analyst's Notes

Key Ratios of JG Chemicals

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales177180228252258226188257335245
Operating Expenses 166170210224239217179242309234
Manufacturing Costs1099912119131613
Material Costs146151182193214193158213272202
Employee Cost 2234346778
Other Costs 881618109781411
Operating Profit 111118281999152710
Operating Profit Margin (%) 6.1%5.8%7.9%11.1%7.3%4.1%4.6%5.7%7.9%4.2%
Other Income 0113585998
Interest 4444432211
Depreciation 1011110111
Exceptional Items 000000000-2
Profit Before Tax 781526191412213414
Tax 2359645594
Profit After Tax 5591614107162511
PAT Margin (%) 2.6%2.8%4.1%6.5%5.3%4.6%3.7%6.2%7.5%4.4%
Adjusted EPS (₹)1.51.63.05.24.33.32.25.08.02.8
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 1621304760717893119290
Share Capital 111111113239
Reserves 152029465970769287250
Minority Interest0000000000
Debt2930432937202224130
Long Term Debt4440000000
Short Term Debt2526392837192224130
Trade Payables5331423334
Others Liabilities 11681143217
Total Liabilities 5155828510394107123137311

Fixed Assets

Gross Block891010111167712
Accumulated Depreciation4556671223
Net Fixed Assets4454445559
CWIP 0000000000
Investments 0011191111644
Inventories17182927422419432823
Trade Receivables22223236322839405044
Cash Equivalents 110110554144
Others Assets781415232827184348
Total Assets 5155828510394107123137311

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 51-819-4284-3628
PBT 781526191412213416
Adjustment 434553-1-20-2
Changes in Working Capital -3-6-22-3-1915-2-17-1918
Tax Paid -2-3-4-8-9-4-4-5-9-3
Cash Flow From Investing Activity -10-2-1-1-8-135-141
Capex -1-1-2-1-10-20-1-3
Net Investments 00000-8035-131
Others 010000112-7
Cash Flow From Financing Activity -4-29-184-2010-12154
Net Proceeds from Shares 000000000152
Net Proceeds from Borrowing 0000000000
Interest Paid -3-3-4-4-4-3-2-2-1-1
Dividend Paid 0000000000
Others 0213-149-1732-112
Net Cash Flow 10-110040040
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)33.5527.0636.6342.6325.2815.919.2918.4623.765.28
ROCE (%)24.5223.1429.8539.9827.1217.9414.0221.328.317.25
Asset Turnover Ratio3.793.453.353.033.22.641.872.232.581.09
PAT to CFO Conversion(x)10.2-0.891.19-0.292.80.57-0.190.242.55
Working Capital Days
Receivable Days49444449414265564970
Inventory Days26363841424642453938
Payable Days9954466647

JG Chemicals Ltd Stock News

JG Chemicals Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of JG Chemicals on 12-Dec-2024 16:59 is ₹435.4.
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 12-Dec-2024 16:59 the market cap of JG Chemicals stood at ₹1,706.4.
The latest P/E ratio of JG Chemicals as of 12-Dec-2024 16:59 is 158.2.
The latest P/B ratio of JG Chemicals as of 12-Dec-2024 16:59 is 5.58.
The 52-week high of JG Chemicals is ₹484.0 and the 52-week low is ₹171.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of JG Chemicals is ₹244.7 ( Cr.) .

About JG Chemicals Ltd

JG Chemicals Limited was initially formed as a partnership firm on March 15, 1975 under the name ‘J.G.Chemicals’ at West Bengal as a partnership at will which was registered under the Indian Partnership Act, 1932 with the Registrar of Firms, West Bengal in 1983. Subsequently, the partnership firm was converted into a joint stock company and was registered as a private limited company in the name and style ‘J.G.Chemicals Private Limited’ pursuant to a certificate of incorporation dated June 28, 2001, issued by RoC, in accordance with provisions of the Companies Act, 1956. Thereafter, pursuant to a resolution passed at the meeting of the Board of Directors held on March 16, 2022, and a special resolution of the Shareholders at the EGM held on April 30, 2022, the name of the Company was changed to J.G.Chemicals Limited, pursuant to its conversion into a public limited company. A fresh certificate of incorporation dated May 24, 2022, consequent upon conversion, was issued by the RoC.

JG Chemicals is India’s largest zinc oxide manufacturer in terms of production and revenue for zinc oxide manufacturing through French process, which is the dominant production technology for producing zinc oxide and has been adopted by all the major producers in Americas, Europe and Asia. The market share of the company is around 30% as on March 2022. It sells many grades of zinc oxide and are among the top ten manufacturers of zinc oxides globally. Since its incorporation in 2001, the company has expanded its business and scale of operations and has grown into a large, diversified zinc oxide player with a global footprint. Its product caters to a wide spectrum of industrial applications, including in the rubber (tyre & other rubber products), ceramics, paints & coatings, pharmaceuticals & cosmetics, electronics & batteries, agro-chemicals & fertilizers, speciality chemicals, lubricants, oil & gas and animal feed.

Owing to its legacy of over four decades in manufacturing businesses, it benefits from its experience in catering to a wide array of customers and it has built a long-standing relationship with customers across end-user industries in the tyres, ceramics, rubber, paints, cosmetics and batteries industry. As a manufacturer of zinc oxide, it is a pre-requisite in most of its end-use industries for its products to be customised according to the specifications by customers, which usually acts as a significant entry barrier. Further, high cost of product development, complexity of the chemistry involved in innovating and tailoring its products to the customised needs of its customers, which requires necessary technical expertise and lengthy and stringent supplier qualification process are the other entry barriers in its business.

Business area of the company

The company is engaged in the business of manufacturing of Zinc Oxide & allied product.

Awards, accreditations and accolades

  • 2018: Recognised as a ‘One Star Export House’ by DGFT, Ministry of Commerce and Industry, India
  • 2018: Obtained ISO 14001: 2015 certifications for environment management system at the Registered Office, Belur Facility and Jangalpur Facility.
  • 2018: Obtained ISO 9001: 2015 certifications for quality management system at the Registered Office, Belur Facility and Jangalpur Facility.
  • 2020: Obtained ISO 45001: 2018 certifications for occupational health and safety management system at the Registered Office, Belur Facility and Jangalpur Facility.
  • 2021: Obtained ISO 14001: 2015 certifications for environment management system at the Naidupeta Facility. 
  • 2021: Obtained ISO 45001: 2018 certifications for occupational health and safety management system at the Naidupeta Facility.
  • 2021: Obtained ISO 9001: 2015 certifications for quality management system at the Naidupeta Facility.
  • 2021: Apollo Gold Partner Award-Quality Champion by Apollo Tyres Limited.
  • 2022: Obtained IATF 16949 certificate for manufacture of zinc oxide powder at Naidupeta Facility.
  • 2023: Recognised as a ‘TwoStar Export House’ by DGFT, Ministry of Commerce and Industry, India.
  • 2023: Obtained WHO GMP certificatefor manufacture and supply of pharma grade zinc oxide at the Naidupeta Facility. 

History and milestones

  • 2001: Conversion of its partnership firm into a private limited company.
  • 2001: Commencement of operations at Belur Facility.
  • 2004: Commencement of operations at Jangalpur Facility.
  • 2016: Commencement of operations at Naidupeta Facility.
  • 2022: Achieved Rs 600 crore in consolidated turnover.

Read More Read Less
You have 2 views remaining as a Guest User. To get DeciZen Rating of 3,500+ Stocks based on their Quality, Valuation and Price Trend Login Now
© 2024 The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me ® is a registered trademark of The Alchemists Ark Pvt. Ltd.