Mehabe score: 5 G Factor: 5 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 6.
Description
JSL Industries is ISO:9001-2008 recognized company, engaged in the manufacturing of engineering goods.Site:504080Main Symbol:JSLINDL
Stock trades at 228.0, above its 50dma 167.67. It also trades above its 200dma 134.04. The stock remains bullish on techicals
The 52 week high is at 229.30 and the 52week low is at 67.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.99 times its book value
-Debtor days have improved from 29.92 to 21.02 days.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 0.80% over past five years.
– has a low return on equity of 3.69% for last 3 years.
-Contingent liabilities of Rs.8.62 Cr.
Competition
– The industry trades at a mean P/E of 31.3x. A B B trades at the industry’s max P/E of 120.24x. 504080 trades at a P/E of 11.2x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 7.0. 504080 has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 5.7%. The max 1- month return was given by JSL Industries: a return of 41.83 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 11.75 cr compared to Rs 8.54 cr for period ended Jun 2020, a rise of 37.6%
Operating Profits reported at Rs 0.43 cr for period ended Jun 2021 vis-vis 0.75 for period ended Jun 2020 .
Operating Margins contracted -512.3 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 3.32 compared to Rs 0.77 for previous quarter ended Mar 2021 and Rs 3.41 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 52.88 cr for period ended TTM vis-vis sales of Rs 49.67 cr for the period ended Mar 2021, a growth of 6.1%. The 3 year sales cagr stood at -1.2%.
Operating margins shrank to 8.26% for period ended TTM vis-vis 9.44% for period ended Mar 2021, contraction of 118.0 bps.
Net Profit reported at Rs 2.39 cr for period ended TTM vis-vis sales of Rs 2.4 cr for the period ended Mar 2021, falling 0.4%.
Company recorded a healthy Net Profit CAGR of 95.5% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 1.25 cr for period ended Mar 2021 vis-vis Rs -2.27 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 9.0% compared to 4.0% over the last 3 Years. – The stock has given a return of 191% on a 1 Year basis vis-vis a return of 18% over the last 3 Years. – The compounded sales growth on a TTM bassis is 3% vis-vis a compounded sales growth of 2% over the last 3 Years. – The compounded profit growth on a TTM basis is 674% vis-vis a compounded profit growth of 129% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 46.69% vis-vis 46.69% for Mar 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.99 times its book value
-Debtor days have improved from 29.92 to 21.02 days. – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 0.80% over past five years.
– has a low return on equity of 3.69% for last 3 years.
-Contingent liabilities of Rs.8.62 Cr.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 167.67 and is trading at 228.0, thus bullish price action wise.
