Understanding the Current Rating
The Sell rating assigned to Jay Ushin Ltd indicates a cautious stance for investors, suggesting that the stock may underperform relative to the broader market or its sector peers. This recommendation is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. The rating was revised on 08 Dec 2025, when the Mojo Score declined from 51 to 44, reflecting a shift in the company’s overall assessment.
Here’s How Jay Ushin Ltd Looks Today
As of 25 December 2025, Jay Ushin Ltd operates as a microcap within the Auto Components & Equipments sector. The company’s current Mojo Score of 44 places it firmly in the Sell category, signalling below-average prospects based on the MarketsMOJO grading system.
Quality Assessment
The quality grade for Jay Ushin Ltd is below average, highlighting concerns about the company’s long-term fundamental strength. The average Return on Capital Employed (ROCE) stands at 9.77%, which is modest and suggests limited efficiency in generating returns from capital investments. Additionally, the company’s net sales have grown at an annual rate of 12.53% over the past five years, indicating moderate growth but not at a pace that strongly supports a higher rating.
Another quality concern is the company’s debt servicing capability. With a Debt to EBITDA ratio of 3.17 times, Jay Ushin Ltd carries a relatively high debt burden, which could constrain financial flexibility and increase risk, especially in volatile market conditions.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Valuation Perspective
Despite the challenges in quality, Jay Ushin Ltd’s valuation grade is considered attractive. This suggests that the stock is trading at a price level that may offer value relative to its earnings, assets, or cash flows. For value-oriented investors, this could present an opportunity to acquire shares at a reasonable price, though the underlying risks must be carefully weighed.
Financial Trend Analysis
The financial grade is flat, indicating that the company’s recent financial performance has been stable but without significant improvement or deterioration. The latest quarterly results showed flat performance, with some notable metrics such as a Debtors Turnover Ratio of 8.44 times, which is relatively low and may point to slower collections or working capital inefficiencies.
Additionally, non-operating income accounted for 68.88% of Profit Before Tax (PBT) in the recent quarter, signalling that a substantial portion of profits is derived from sources outside the core business operations. This reliance on non-operating income can introduce volatility and reduce the predictability of earnings going forward.
Technical Outlook
From a technical standpoint, Jay Ushin Ltd is mildly bullish. The stock has shown positive momentum over several time frames: a 6.18% gain over the past week, an 18.68% rise over three months, and a notable 50.37% increase over six months. The year-to-date return stands at 32.18%, with a one-year return of 33.62%, reflecting some resilience in the share price despite fundamental concerns.
However, the recent one-month performance was negative at -10.11%, indicating short-term volatility. The mild bullish technical grade suggests that while the stock has upward momentum, it may be vulnerable to corrections or sideways movement in the near term.
Implications for Investors
The Sell rating on Jay Ushin Ltd advises investors to exercise caution. While the valuation appears attractive and technical signals show some positive momentum, the below-average quality and flat financial trends raise concerns about the company’s ability to sustain growth and profitability. The elevated debt levels and reliance on non-operating income further complicate the risk profile.
Investors should consider these factors carefully and may prefer to monitor the stock closely or seek alternative opportunities with stronger fundamentals and clearer growth trajectories within the Auto Components & Equipments sector.
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Summary
Jay Ushin Ltd’s current Sell rating reflects a balanced assessment of its strengths and weaknesses as of 25 December 2025. The company’s attractive valuation and mild technical bullishness are offset by below-average quality, flat financial trends, and elevated debt levels. Investors should weigh these factors carefully when considering exposure to this microcap within the Auto Components & Equipments sector.
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