JG Chemicals Ltd - Stock Valuation and Financial Performance

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

JG Chemicals Share Price

225.65 -0.80 -0.35%
as on 12-Apr'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):
55.98
Market Cap:
884.2 Cr.
52-wk low:
171
52-wk high:
242.4

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 average 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 Weak which suggest that the price of JG Chemicals Ltd is likely to Fall 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 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 % 3.4%9.8%16.7%14.8%19.1%24%17.1%11.4%7.7%12.3%-
Value Creation
Index
-0.8-0.30.20.10.40.70.2-0.2-0.5-0.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 00177180228252258226188257257
Sales YoY Gr.-NANA1.9%26.4%10.4%2.4%-12.3%-16.9%36.6%-
Adj EPS 0.40.51.51.52.94.73.72.71.93.74
YoY Gr.-40%198%-0.7%100.7%62.9%-21.1%-26.7%-30.3%93.2%-
BVPS (₹) 3.13.656.69.614.819.122.424.529.50
Adj Net
Profit
1.11.54.64.69.21511.98.76.111.716
Cash Flow from Ops. -2.50.25.51.3-7.519.4-3.928.24.1-3.1-
Debt/CF from Ops. -10.2137.65.324.2-5.71.5-9.60.75.4-7.7-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales NA2.4%-0.1%36.6%
Adj EPS 29.9%4.9%-0.5%93.2%
BVPS28.4%25.2%15.6%20.4%
Share Price - - - -

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on
Equity %
11.814.533.824.935.938.922.113.28.113.727.4
Op. Profit
Mgn %
006.25.97.911.17.34.15.45.7NAN
Net Profit
Mgn %
002.62.6464.63.93.24.66.2
Debt to
Equity
2.62.51.81.41.40.60.60.30.30.3-
Working Cap
Days
0087941001121061241611330
Cash Conv.
Cycle
00677277877984102960

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 27.30%

Sales growth has been subdued in last 3 years -0.14%

Net Profit has been subdued in last 3 years -0.45%

Sales growth is not so good in last 4 quarters at 0.00%

Latest Financials - JG Chemicals Ltd.

Standalone Consolidated
TTM EPS (₹) 4 14
TTM Sales (₹ Cr.) 257 785
BVPS (₹.) 0 116.1
Reserves (₹ Cr.) 332 416
P/BV 0.00 1.94
PE 55.98 16.09
From the Market
52 Week Low / High (₹) 171.00 / 242.40
All Time Low / High (₹) 171.00 / 242.40
Market Cap (₹ Cr.) 884
Equity (₹ Cr.) 39.2
Face Value (₹) 10
Industry PE 49.3

Management X-Ray of JG Chemicals:

Shareholding Pattern

No Data To Display

Promoter's Holding & Share Pledging

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'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22
Sales00177180228252258226188257
Operating Expenses 01166170210224239217179242
Manufacturing Costs00109991211913
Material Costs01146151182193214193158213
Employee Cost 0022343467
Other Costs 0088161810978
Operating Profit 0-111111828199915
Operating Profit Margin (%) --6.1%5.8%7.9%11.1%7.3%4.1%4.6%5.7%
Other Income 1701135859
Interest 0344444322
Depreciation 0110111101
Exceptional Items 0000000000
Profit Before Tax 1278152619141221
Tax 0123596455
Profit After Tax 12559161410716
PAT Margin (%) --2.6%2.8%4.1%6.5%5.3%4.6%3.7%6.2%
Adjusted EPS (₹)0.40.51.51.63.05.24.33.32.25.0
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22

Equity and Liabilities

Shareholders Fund 10111621304760717893
Share Capital 1111111111
Reserves 9101520294659707692
Minority Interest0000000000
Debt26292930432937202224
Long Term Debt6444400000
Short Term Debt20252526392837192224
Trade Payables2253314233
Others Liabilities 1111681143
Total Liabilities 38445155828510394107123

Fixed Assets

Gross Block77891010111167
Accumulated Depreciation3445566712
Net Fixed Assets4444544455
CWIP 0000000000
Investments 000011191111
Inventories1191718292742241943
Trade Receivables19262222323632283940
Cash Equivalents 0011011055
Others Assets4578141523282718
Total Assets 38445155828510394107123

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22
Cash Flow From Operating Activity -3051-819-4284-3
PBT 2278152619141221
Adjustment 33434553-1-2
Changes in Working Capital -7-6-3-6-22-3-1915-2-17
Tax Paid 00-2-3-4-8-9-4-4-5
Cash Flow From Investing Activity -10-10-2-1-1-8-13
Capex -10-1-1-2-1-10-20
Net Investments 0000000-803
Others 0001000011
Cash Flow From Financing Activity 30-4-29-184-2010
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 0000000000
Interest Paid -2-4-3-3-4-4-4-3-2-2
Dividend Paid 0000000000
Others 530213-149-1732
Net Cash Flow 0010-110040
PARTICULARSMar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22
Ratios
ROE (%)11.7714.533.5527.0636.6342.6325.2815.919.2918.46
ROCE (%)3.3714.2624.5223.1429.8539.9827.1217.9414.0221.3
Asset Turnover Ratio003.793.453.353.033.22.641.872.23
PAT to CFO Conversion(x)-3010.2-0.891.19-0.292.80.57-0.19
Working Capital Days
Receivable Days004944444941426556
Inventory Days002636384142464245
Payable Days074499544666

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-Apr-2024 16:59 is ₹225.7.
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-Apr-2024 16:59 the market cap of JG Chemicals stood at ₹884.2.
The latest P/E ratio of JG Chemicals as of 12-Apr-2024 16:59 is 55.98.
The latest P/B ratio of JG Chemicals as of 12-Apr-2024 16:59 is 0.00.
The 52-week high of JG Chemicals is ₹242.4 and the 52-week low is ₹171.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of JG Chemicals is ₹256.6 ( 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.