Jayaswal Neco Industries Ltd (JAYNECOIND) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Usha Martin

Jayaswal Neco

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Why is Jayaswal Neco Industries Ltd ?

Healthy long term growth as Operating profit has grown by an annual rate 24.49%

With a growth in Net Profit of 87.79%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 5 consecutive quarters
ROCE(HY) Highest at 21.00%
OPERATING PROFIT TO INTEREST(Q) Highest at 5.45 times
CASH AND CASH EQUIVALENTS(HY) Highest at Rs 267.38 cr

With ROCE of 21.9, it has a Fair valuation with a 2.8 Enterprise value to Capital Employed

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 189.71%, its profits have risen by 317.7% ; the PEG ratio of the company is 0.1

Market Beating performance in long term as well as near term

Along with generating 189.71% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Jayaswal Neco should be less than 10%
Overall Portfolio exposure to Iron & Steel Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Iron & Steel Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Jayaswal Neco for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jayaswal Neco

189.28%

2.90

65.17%

Sensex

-3.59%

-0.27

13.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.99%

EBIT Growth (5y)

24.49%

EBIT to Interest (avg)

1.72

Debt to EBITDA (avg)

3.12

Net Debt to Equity (avg)

0.65

Sales to Capital Employed (avg)

1.28

Tax Ratio

23.26%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

1.20%

ROCE (avg)

21.18%

ROE (avg)

15.22%

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

3.93

EV to EBIT

12.67

EV to EBITDA

9.80

EV to Capital Employed

2.78

EV to Sales

1.82

PEG Ratio

0.07

Dividend Yield

ROCE (Latest)

21.92%

ROE (Latest)

16.56%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

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

27What is working for the Company

ROCE(HY)

Highest at 21.00%

OPERATING PROFIT TO INTEREST(Q)

Highest at 5.45 times

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 267.38 cr

DEBT-EQUITY RATIO(HY)

Lowest at 0.74 times

DEBTORS TURNOVER RATIO(HY)

Highest at 15.21 times

NET SALES(Q)

Highest at Rs 1,974.24 cr

PBDIT(Q)

Highest at Rs 375.60 cr.

PBT LESS OI(Q)

Highest at Rs 231.86 cr.

PAT(Q)

Highest at Rs 190.87 cr.

EPS(Q)

Highest at Rs 1.97

-2What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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Here's what is working for Jayaswal Neco

Profit After Tax (PAT) - Quarterly

At Rs 190.87 cr has Grown at 87.8%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 5.45 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 231.86 cr has Grown at 73.06%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

Highest at Rs 1,974.24 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 375.60 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 231.86 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 190.87 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 1.97

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 267.38 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Lowest at 0.74 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio- Half Yearly

Highest at 15.21 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio