Jai Corp Ltd (JAICORPLTD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kingfa Science

Time Technoplast

Premier Polyfilm

Jain Irrigation

Jai Corp

Garware Hi Tech

Prince Pipes

Prakash Pipes

Apollo Pipes

Kriti Industries

All Time Plastic

Why is Jai Corp Ltd ?

Poor Management Efficiency with a low ROE of 5.95%

The company has been able to generate a Return on Equity (avg) of 5.95% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.82% and Operating profit at 12.21% over the last 5 years

With ROE of 11.5, it has a Very Expensive valuation with a 1.6 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -66.48%, its profits have risen by 150.9% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 4.2

Despite the size of the company, domestic mutual funds hold only 0.14% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Below par performance in long term as well as near term

Along with generating -66.48% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Plastic Products - Industrial)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Jai Corp for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jai Corp

-66.53%

-1.10

60.24%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.82%

EBIT Growth (5y)

12.21%

EBIT to Interest (avg)

31.66

Debt to EBITDA (avg)

0.50

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

0.39

Tax Ratio

10.20%

Dividend Payout Ratio

16.99%

Pledged Shares

Institutional Holding

2.48%

ROCE (avg)

3.16%

ROE (avg)

5.95%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.61

EV to EBIT

51.24

EV to EBITDA

39.17

EV to Capital Employed

1.91

EV to Sales

3.47

PEG Ratio

0.09

Dividend Yield

4.18%

ROCE (Latest)

3.73%

ROE (Latest)

11.47%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

19What is working for the Company

PAT(Latest six months)

At Rs 131.14 cr has Grown at 323.41%

ROCE(HY)

Highest at 12.81%

PBT LESS OI(Q)

At Rs 14.15 cr has Grown at 57.0% (vs previous 4Q average

NET SALES(Q)

Highest at Rs 146.36 cr

PBDIT(Q)

Highest at Rs 16.96 cr.

-8What is not working for the Company

OPERATING CF(Y)

Lowest at Rs 43.41 Cr

PAT(Q)

At Rs 26.81 cr has Fallen at -31.9% (vs previous 4Q average

NON-OPERATING INCOME(Q)

is 58.44 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Jai Corp

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 14.15 cr has Grown at 57.0% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 9.02 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

Highest at Rs 146.36 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 16.96 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 14.15 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Here's what is not working for Jai Corp

Profit After Tax (PAT) - Quarterly

At Rs 26.81 cr has Fallen at -31.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 39.36 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Cash Flow - Annually

Lowest at Rs 43.41 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Non Operating Income - Quarterly

is 58.44 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT