Current Rating and Its Implications
The 'Sell' rating assigned to Jay Ushin Ltd indicates a cautious stance for investors considering this stock. This recommendation suggests that the stock may underperform relative to the broader market or its sector peers in the near to medium term. Investors should carefully evaluate the underlying factors influencing this rating before making investment decisions.
How Jay Ushin Ltd Looks Today: Fundamentals and Performance
As of 05 January 2026, Jay Ushin Ltd operates within the Auto Components & Equipments sector and is classified as a microcap company. The latest data shows a Mojo Score of 44.0, reflecting a below-average overall assessment and resulting in the current 'Sell' grade. This score represents a decline of 7 points from the previous 51 score when the rating was 'Hold' on 08 December 2025.
Examining the stock’s recent price movements, the one-day change stands at 0.00%, while the one-week return is negative at -2.59%. Over the past month, the stock has declined by 1.31%, but it has delivered a notable 16.25% gain over three months and an impressive 45.31% over six months. Year-to-date, the stock is down by 3.06%, yet it has posted a strong 32.86% return over the last year. These mixed returns highlight some volatility and suggest that while the stock has shown resilience in the medium term, recent momentum has softened.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Quality Assessment
Jay Ushin Ltd’s quality grade is currently below average. The company’s long-term fundamental strength is weak, as evidenced by an average Return on Capital Employed (ROCE) of 9.77%. This level of ROCE indicates modest efficiency in generating profits from its capital base compared to industry standards. Additionally, the company’s net sales have grown at an annual rate of 12.53% over the past five years, which, while positive, is not sufficiently robust to offset other concerns.
Valuation Perspective
From a valuation standpoint, Jay Ushin Ltd appears attractive. This suggests that the stock is trading at a price that may be considered reasonable or undervalued relative to its earnings, assets, or cash flows. However, attractive valuation alone does not guarantee positive returns, especially when other fundamental and financial factors are less favourable.
Financial Trend and Stability
The financial grade for Jay Ushin Ltd is flat, indicating a lack of significant improvement or deterioration in recent financial performance. The company’s ability to service debt is a concern, with a high Debt to EBITDA ratio of 3.17 times. This elevated leverage ratio points to increased financial risk, as the company may face challenges in meeting its debt obligations if earnings weaken.
Further, the latest quarterly results show flat performance, with a Debtors Turnover Ratio (half-year) at a low 8.44 times, signalling slower collection efficiency. Non-operating income constitutes a substantial 68.88% of Profit Before Tax (PBT), which may raise questions about the sustainability of earnings derived from core operations.
Technical Analysis
Technically, the stock is mildly bullish, indicating some positive momentum in price trends. This mild bullishness may reflect short-term investor interest or market sentiment but is insufficient to outweigh the fundamental and financial concerns that underpin the 'Sell' rating.
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What This Rating Means for Investors
For investors, the 'Sell' rating on Jay Ushin Ltd serves as a cautionary signal. It suggests that the stock may face headwinds due to its weak fundamental quality, financial risks related to debt servicing, and flat financial trends. While the valuation appears attractive and technical indicators show mild bullishness, these positives do not currently outweigh the risks identified.
Investors should consider these factors carefully and may want to prioritise stocks with stronger fundamentals and financial health, especially in the volatile Auto Components & Equipments sector. Those holding Jay Ushin Ltd shares might evaluate their exposure and consider risk management strategies in light of this rating.
Summary
In summary, Jay Ushin Ltd’s current 'Sell' rating by MarketsMOJO, updated on 08 December 2025, reflects a comprehensive assessment of its below-average quality, attractive valuation, flat financial trend, and mildly bullish technicals. The latest data as of 05 January 2026 confirms that while the stock has delivered some positive returns over the medium term, underlying fundamental and financial challenges justify a cautious approach.
Investors seeking to understand the nuances behind this rating and monitor any future developments should keep abreast of quarterly results, debt management progress, and sector dynamics.
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