Mehabe score: 4 G Factor: 3 Piotski Score: 7 The stock has a rating OBSERVE & 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 3 and Piotski score of 7.
Description
Jash Engineering Limited is manufacturing a wide range of equipment for Water Intake Systems, Water and Waste Water Pumping Stations and Treatment Plants, Storm Water Pumping Stations, Water Transmission Lines, Power, Steel, Cement, Paper & Pulp, Petrochemicals, Chemical, Fertilizers, and other process plants. #
Main Points
Product Basket #
– Water Control Gates 47% of revenues
– Valves 17% of revenues
– Screening Equipments 18% of revenues
– Hydropower & Pumping, Process Equipment, and others 18% of revenuesSite:JASH
Market Cap:
Rs 558 cr
Price:
470.0
Trading pe:
18.3x
Book-value:
106/share
Div yield:
0.19 %
Earning yield:
6.09%
Face-value:
10.0/share
52week high:
459.00
52week low:
136.00
Technical Analysis
Stock trades at 470.0, above its 50dma 381.48. It also trades above its 200dma 288.7. The stock remains bullish on techicals
The 52 week high is at 459.00 and the 52week low is at 136.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 33.20% CAGR over last 5 years
Weakness
– Promoter holding has decreased over last quarter: -0.42%
Competition
– The industry trades at a mean P/E of 20.6x. GMM Pfaudler trades at the industry’s max P/E of 93.14x. JASH trades at a P/E of 18.3x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 8.0. JASH has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 1.4%. The max 1- month return was given by Praj Industries: a return of 8.88 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 129.0 cr compared to Rs 88.0 cr for period ended Mar 2020, a rise of 46.6%
Operating Profits reported at Rs 31.0 cr for period ended Mar 2021 vis-vis 13.0 for period ended Mar 2020 .
Operating Margins expanded 925.8 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 20.0 compared to Rs 8.55 for previous quarter ended Dec 2020 and Rs 8.52 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 299.0 cr for period ended Mar 2021 vis-vis sales of Rs 278.0 cr for the period ended Mar 2020, a growth of 7.0%. The 3 year sales cagr stood at 19.5%.
Operating margins expanded to 17.0% for period ended Mar 2021 vis-vis 14.0% for period ended Mar 2020, expansion of 300.0 bps.
Net Profit reported at Rs 31.0 cr for period ended Mar 2021 vis-vis sales of Rs 20.0 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
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 24.0% compared to 17.0% over the last 3 Years. – The stock has given a return of 192% on a 1 Year basis vis-vis a return of 62% over the last 3 Years. – The compounded sales growth on a TTM bassis is 8% vis-vis a compounded sales growth of 20% over the last 3 Years. – The compounded profit growth on a TTM basis is 51% vis-vis a compounded profit growth of 244% over the last 3 Years.
Ratios
Conclusion
– has delivered good profit growth of 33.20% CAGR over last 5 years – Promoter holding has decreased over last quarter: -0.42%
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 381.48 and is trading at 470.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock