JNK India Ltd (JNKINDIA) 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

OBSC Perfection

Thejo Engg.

JNK

HLE Glascoat

Pennar Industrie

Kabra Extrusion

Kilburn Engg.

HMT

Concord Control

MV Electrosystem

Vinyas Innovativ

Why is JNK India Ltd ?

High Management Efficiency with a high ROE of 16.50%

Company has a Debt to Equity ratio (avg) of 0.06 times

Poor long term growth as Operating profit has grown by an annual rate -3.42% of over the last 5 years

Flat results in Jun 26

INTEREST(9M) At Rs 15.26 cr has Grown at 52.75%
PBT LESS OI(Q) At Rs 8.60 cr has Fallen at -47.7% (vs previous 4Q average)
PAT(Q) At Rs 11.47 cr has Fallen at -29.4% (vs previous 4Q average)

With ROE of 11.4, it has a Very Expensive valuation with a 4.2 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 43.96%, its profits have risen by 201.6% ; the PEG ratio of the company is 0.2

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -1.88% over the previous quarter and collectively hold 11.86% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to JNK should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is JNK for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

JNK

43.96%

0.77

56.95%

Sensex

-8.3%

-0.62

13.46%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

30.08%

EBIT Growth (5y)

-3.42%

EBIT to Interest (avg)

5.32

Debt to EBITDA (avg)

0.90

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

1.11

Tax Ratio

25.08%

Dividend Payout Ratio

5.54%

Pledged Shares

Institutional Holding

11.86%

ROCE (avg)

20.59%

ROE (avg)

16.50%

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

4.19

EV to EBIT

23.93

EV to EBITDA

21.60

EV to Capital Employed

5.07

EV to Sales

2.51

PEG Ratio

0.16

Dividend Yield

0.07%

ROCE (Latest)

18.65%

ROE (Latest)

11.44%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

20What is working for the Company

PAT(Latest six months)

At Rs 44.12 cr has Grown at 207.03%

NET SALES(Latest six months)

At Rs 518.40 cr has Grown at 78.73%

INVENTORY TURNOVER RATIO(HY)

Highest at 32.81 times

DEBTORS TURNOVER RATIO(HY)

Highest at 2.37 times

-15What is not working for the Company

INTEREST(Latest six months)

At Rs 11.10 cr has Grown at 58.57%

PBT LESS OI(Q)

At Rs 8.60 cr has Fallen at -47.7% (vs previous 4Q average

PAT(Q)

At Rs 11.47 cr has Fallen at -29.4% (vs previous 4Q average

NET SALES(Q)

At Rs 179.96 cr has Fallen at -12.1% (vs previous 4Q average

NON-OPERATING INCOME(Q)

is 41.26 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for JNK

Inventory Turnover Ratio- Half Yearly

Highest at 32.81 times and Grown

each half year in the last five half yearly periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio- Half Yearly

Highest at 2.37 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for JNK

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 8.60 cr has Fallen at -47.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 16.45 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 11.47 cr has Fallen at -29.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 16.24 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Latest six months

At Rs 11.10 cr has Grown at 58.57%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Net Sales - Quarterly

At Rs 179.96 cr has Fallen at -12.1% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 204.64 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Non Operating Income - Quarterly

is 41.26 % 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