Detailed Analysis on Jyoti Resins and Adhesives Ltd

 


Market Cap : 1577 Cr

Current Price (01-06-2024) : 1314

Sector : Chemicals

BSE  : JYOTIRES

Website : euro7000.com 

About : 

AN ISO 9001:2015 CERTIFIED COMPANY “JYOTI RESINS AND ADHESIVES LIMITED” HAS LAUNCHED ITS BRAND EURO 7000 IN YEAR 2006. EURO 7000 IS A LEADING ADHESIVE BRAND IN INDIA. 

The Company manufactures various types of wood adhesives under the brand name of EURO 7000, EURO7000 has grown exponentially and is now Became The Second Largest Brand Of high grade & Premium synthetic resin adhesives.

Financial Metrics :

(source : screener.in)

  • Market Cap : 1577 Cr
  • Current Price : 1314
  • High / Low : 1780 / 1181
  • Book Value : 139
  • EPS : 55.90
  • Promoter Holding : 50.80 %
  • Pledged Percentage : 0.00 %
  • P/E Ratio : 23.50 (Industry PE : 35.60)
  • PEG Ratio : 0.24
  • Operating Profit Margin : 33.00 %
  • Return on capital employed (ROCE) : 65.90 %
  • Return on equity (ROE) : 49.30 %
  • Return on assets (ROA) : 27.90 %
  • Sales Growth 5Yr : 30.20 %
  • Profit Growth 5Yr : 98.10 %
  • Dividend Last Year : 6.00
  • Dividend Yield : 0.46 %
  • Debt : 0.00 Cr
  • Debt to Equity : 0.00
  • Debtor Days FY23 : 133
  • Current Assets : 221 Cr
  • Current Liabilities : 103 Cr
  • Free Cash Flow : -1.55 Cr
  • Net Cash Flow : -2.42 Cr

Please refer to this article for detailed explanation on above mentioned financial metrics 


Earnings :

(source : screener.in)

Quarterly


Yearly

Good Sales growth 
  • Over the last 5 years sales has grown at a yearly rate of  30 %
  • Over the last 3 years sales has grown at a yearly rate of  36 %
Good net profit growth
  • Over the last 5 years net profit has grown at a yearly rate of  98 %
  • Over the last 3 years net profit has grown at a yearly rate of  82 %
 Good return on equity
  • ROE last year  49 %
  • Over the last 5 years ROE has grown at a yearly rate of  46 %
  • Over the last 3 years ROE has grown at a yearly rate of  48 %
Good return on capital employed
  • ROCE last year  65.90 %
  • Over the last 5 years ROCE has grown at a yearly rate of  56.50 %
  • Over the last 3 years ROCE has grown at a yearly rate of  61.60 %
Good Operating profit margin
  • 2024 OPM  33 %
  • 2023 OPM  23 %
  • 2022 OPM  13 %
Manufacturing Facility :

COMPANY HAS ESTABLISHED A HUGE PLANT WITH CAPACITY OF 2000 TONS/MONTH, WHICH IS LOCATED AT SANTEJ, AHMEDABAD.

THERE IS A RESEARCH AND DEVELOPMENT (R&D) TEAM WHICH IS SOLELY DEDICATED TOWARDS IMPROVING, INNOVATING AND DEVELOPING NEW PRODUCTS. THE R&D DIVISION HAS A FULLY INTEGRATED PRODUCT DEVELOPMENT ENVIRONMENT WHICH HELPS THE COMPANY RIGHT FROM CONCEPTUAL DESIGNS TO THE FINAL MANUFACTURING OF THE PRODUCTS.

The company imports raw materials from several countries. The raw materials are then processed and white glue is manufactured in the plant at Santej. The finished product is then packaged into different sizes starting from 500 gm up to 70 kg. The products are then sold through a mix of Distributors consignees and sales Agents into the retail market (sold to dealers). 

Products :

1) EURO XTRA : 

Benefits :

Anti Termite Formula
More Coverage
Better Strength

2) EURO WP 2IN1 :

Benefits :

Waterproof Adhesive
Anti Termite Formula
Heat & Fungal Resistant
Excellent Strength

3) EURO EXTREME3 :

Benefits :

Fast Drying Adhesive 2-3 Hours Handling Strength
Waterproof Adhesive
Anti Termite Formula

4) EURO ULTRA 5IN1 :

Benefits :

Fast Drying Adhesive 2 Hours Handling Strength
Waterproof Adhesive
Anti Termite Formula
Weather Proof
More Coverage

5) EURO EXTREME 3 HI STRONG :

Benefits :

Fast Drying Adhesive 2-3 Hours Handling Strength
Waterproof Adhesive
Anti Termite Formula

6) EURO PVC GLUE :

Benefits :

Strong Bonding of PVC Sheet to Wood
Pre Edge Bending Taps

7) EURO 2IN1 :

Benefits :

Waterproof Adhesive
Anti Termite Formula
Heat & Fungal Resistant
Excellent Strength

8) EURO EWR :

Benefits :

Suitable For Cold & Hot Press
More Coverage
Better Strength

The company services 14 states in India through 35 branches and 60 distributors, catering to 12,000 active retailers and 3 lac carpenters across India. A 400-strong sales force plays a key role in this process.

PROS :
  1. Company with no debit.
  2. Company with good promoter holding and zero promoter pledge.
  3. Company is maintaining healthy dividend payout.
  4. Generating good ROCE, ROE, ROA.
  5. Company has delivered good profit growth of 98.10 % CAGR over last 5 years.
  6. Company has delivered good sales growth of 30.00 % CAGR over last 5 years.
  7. Company has been consistently improving its operating margins.
  8. Stock PE is less than industry PE.
CONS :
  1. Stock is trading at 9.45 times its book value.
  2. Negative free cash flow and net cash flow.
This is not a buy/sell advice I am not SEBI registered, just providing basic details regarding this company from various sources available online, please do your own research or consult a SEBI registered investment advisor before taking any investment decision.

Thank You for reading this article if you liked this one please visit next week again for analysis on another new stock.

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