Past 10 year's financial track record analysis by Moneyworks4me indicates that JG Chemicals Ltd is a good quality company.
The key valuation ratios of JG Chemicals Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.
The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of JG Chemicals Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
| Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROCE % ⓘ | 24.5% | 23.1% | 29.9% | 40% | 27.1% | 17.9% | 14% | 21.3% | 28.3% | 7.3% | - |
| Value Creation Index ⓘ | 0.8 | 0.7 | 1.1 | 1.9 | 0.9 | 0.3 | 0 | 0.5 | 1.0 | -0.5 | - |
Growth Parameters ⓘGrowth Parameters Colour Code Guide ⓘ | |||||||||||
| Sales ⓘ | 177 | 180 | 228 | 252 | 258 | 226 | 188 | 257 | 335 | 245 | 245 |
| Sales YoY Gr. | - | 1.9% | 26.4% | 10.4% | 2.4% | -12.3% | -16.9% | 36.6% | 30.7% | -27% | - |
| Adj EPS ⓘ | 1.5 | 1.5 | 2.9 | 4.7 | 3.7 | 2.7 | 1.9 | 3.7 | 6.6 | 2.4 | 2.8 |
| YoY Gr. | - | -0.7% | 100.7% | 62.9% | -21.1% | -26.7% | -30.3% | 93.2% | 78.6% | -63% | - |
| BVPS (₹) ⓘ | 5 | 6.6 | 9.6 | 14.8 | 19.1 | 22.4 | 24.5 | 29.5 | 37.4 | 73.9 | 78.1 |
| Adj Net Profit ⓘ | 4.6 | 4.6 | 9.2 | 15 | 11.9 | 8.7 | 6.1 | 11.7 | 20.9 | 9.6 | 11 |
| Cash Flow from Ops. ⓘ | 5.5 | 1.3 | -7.5 | 19.4 | -3.9 | 28.2 | 4.1 | -3.1 | 6.1 | 27.7 | - |
| Debt/CF from Ops. ⓘ | 5.3 | 24.2 | -5.7 | 1.5 | -9.6 | 0.7 | 5.4 | -7.7 | 2.2 | 0 | - |
CAGR Colour Code Guide ⓘ
| 9 Years | 5 Years | 3 Years | 1 Years | |||||
|---|---|---|---|---|---|---|---|---|
| Sales ⓘ | 3.7% | -1% | 9.2% | -27% | ||||
| Adj EPS ⓘ | 5.9% | -8.2% | 8.5% | -63% | ||||
| BVPSⓘ | 34.8% | 31.1% | 44.5% | 97.4% | ||||
| Share Price | - | - | - | - | ||||
Performance Ratio Colour Code Guide ⓘ
| Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on Equity % ⓘ | 33.8 | 24.9 | 35.9 | 38.9 | 22.1 | 13.2 | 8.1 | 13.7 | 19.7 | 4.7 | 3.6 |
| Op. Profit Mgn % ⓘ | 6.2 | 5.9 | 7.9 | 11.1 | 7.3 | 4.1 | 5.4 | 5.7 | 8.4 | 4.4 | 5 |
| Net Profit Mgn % ⓘ | 2.6 | 2.6 | 4 | 6 | 4.6 | 3.9 | 3.2 | 4.6 | 6.2 | 3.9 | 4.4 |
| Debt to Equity ⓘ | 1.8 | 1.4 | 1.4 | 0.6 | 0.6 | 0.3 | 0.3 | 0.3 | 0.1 | 0 | 0 |
| Working Cap Days ⓘ | 87 | 94 | 100 | 112 | 106 | 124 | 161 | 133 | 121 | 176 | 168 |
| Cash Conv. Cycle ⓘ | 67 | 72 | 77 | 87 | 79 | 84 | 102 | 96 | 84 | 103 | 159 |
No data to display
Return on Equity has declined versus last 3 years average to 3.60%
Sales growth has been subdued in last 3 years 9.21%
Net Profit has been subdued in last 3 years 8.51%
Sales growth is not so good in last 4 quarters at 1.36%
| Standalone | Consolidated | |
|---|---|---|
| TTM EPS (₹) | 2.8 | 7.9 |
| TTM Sales (₹ Cr.) | 245 | 668 |
| BVPS (₹.) ⓘ | 78.1 | 111.3 |
| Reserves (₹ Cr.) ⓘ | 267 | 397 |
| P/BV ⓘ | 5.25 | 3.68 |
| PE ⓘ | 148.80 | 52.02 |
| From the Market | |
|---|---|
| 52 Week Low / High (₹) | 171.00 / 484.00 |
| All Time Low / High (₹) | 171.00 / 484.00 |
| Market Cap (₹ Cr.) | 1,605 |
| Equity (₹ Cr.) | 39.2 |
| Face Value (₹) | 10 |
| Industry PE ⓘ | 57.2 |
| Pledged * | 0.00 | 0.00 | 0.00 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 177 | 180 | 228 | 252 | 258 | 226 | 188 | 257 | 335 | 245 |
| Operating Expenses ⓘ | 166 | 170 | 210 | 224 | 239 | 217 | 179 | 242 | 309 | 234 |
| Manufacturing Costs | 10 | 9 | 9 | 9 | 12 | 11 | 9 | 13 | 16 | 13 |
| Material Costs | 146 | 151 | 182 | 193 | 214 | 193 | 158 | 213 | 272 | 202 |
| Employee Cost | 2 | 2 | 3 | 4 | 3 | 4 | 6 | 7 | 7 | 8 |
| Other Costs ⓘ | 8 | 8 | 16 | 18 | 10 | 9 | 7 | 8 | 14 | 11 |
| Operating Profit ⓘ | 11 | 11 | 18 | 28 | 19 | 9 | 9 | 15 | 27 | 10 |
| Operating Profit Margin (%) | 6.1% | 5.8% | 7.9% | 11.1% | 7.3% | 4.1% | 4.6% | 5.7% | 7.9% | 4.2% |
| Other Income ⓘ | 0 | 1 | 1 | 3 | 5 | 8 | 5 | 9 | 9 | 8 |
| Interest ⓘ | 4 | 4 | 4 | 4 | 4 | 3 | 2 | 2 | 1 | 1 |
| Depreciation ⓘ | 1 | 0 | 1 | 1 | 1 | 1 | 0 | 1 | 1 | 1 |
| Exceptional Items ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2 |
| Profit Before Tax ⓘ | 7 | 8 | 15 | 26 | 19 | 14 | 12 | 21 | 34 | 14 |
| Tax ⓘ | 2 | 3 | 5 | 9 | 6 | 4 | 5 | 5 | 9 | 4 |
| Profit After Tax | 5 | 5 | 9 | 16 | 14 | 10 | 7 | 16 | 25 | 11 |
| PAT Margin (%) | 2.6% | 2.8% | 4.1% | 6.5% | 5.3% | 4.6% | 3.7% | 6.2% | 7.5% | 4.4% |
| Adjusted EPS (₹) | 1.5 | 1.6 | 3.0 | 5.2 | 4.3 | 3.3 | 2.2 | 5.0 | 8.0 | 2.8 |
| Dividend Payout Ratio (%) | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
Equity and Liabilities | ||||||||||
| Shareholders Fund | 16 | 21 | 30 | 47 | 60 | 71 | 78 | 93 | 119 | 290 |
| Share Capital ⓘ | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 32 | 39 |
| Reserves ⓘ | 15 | 20 | 29 | 46 | 59 | 70 | 76 | 92 | 87 | 250 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Debt | 29 | 30 | 43 | 29 | 37 | 20 | 22 | 24 | 13 | 0 |
| Long Term Debt | 4 | 4 | 4 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Short Term Debt | 25 | 26 | 39 | 28 | 37 | 19 | 22 | 24 | 13 | 0 |
| Trade Payables | 5 | 3 | 3 | 1 | 4 | 2 | 3 | 3 | 3 | 4 |
| Others Liabilities ⓘ | 1 | 1 | 6 | 8 | 1 | 1 | 4 | 3 | 2 | 17 |
| Total Liabilities ⓘ | 51 | 55 | 82 | 85 | 103 | 94 | 107 | 123 | 137 | 311 |
Fixed Assets | ||||||||||
| Gross Block | 8 | 9 | 10 | 10 | 11 | 11 | 6 | 7 | 7 | 12 |
| Accumulated Depreciation | 4 | 5 | 5 | 6 | 6 | 7 | 1 | 2 | 2 | 3 |
| Net Fixed Assetsⓘ | 4 | 4 | 5 | 4 | 4 | 4 | 5 | 5 | 5 | 9 |
| CWIP ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investmentsⓘ | 0 | 0 | 1 | 1 | 1 | 9 | 11 | 11 | 6 | 44 |
| Inventories | 17 | 18 | 29 | 27 | 42 | 24 | 19 | 43 | 28 | 23 |
| Trade Receivables | 22 | 22 | 32 | 36 | 32 | 28 | 39 | 40 | 50 | 44 |
| Cash Equivalents | 1 | 1 | 0 | 1 | 1 | 0 | 5 | 5 | 4 | 144 |
| Others Assetsⓘ | 7 | 8 | 14 | 15 | 23 | 28 | 27 | 18 | 43 | 48 |
| Total Assets ⓘ | 51 | 55 | 82 | 85 | 103 | 94 | 107 | 123 | 137 | 311 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash Flow From Operating Activity ⓘ | 5 | 1 | -8 | 19 | -4 | 28 | 4 | -3 | 6 | 28 |
| PBT ⓘ | 7 | 8 | 15 | 26 | 19 | 14 | 12 | 21 | 34 | 16 |
| Adjustment ⓘ | 4 | 3 | 4 | 5 | 5 | 3 | -1 | -2 | 0 | -2 |
| Changes in Working Capital ⓘ | -3 | -6 | -22 | -3 | -19 | 15 | -2 | -17 | -19 | 18 |
| Tax Paid ⓘ | -2 | -3 | -4 | -8 | -9 | -4 | -4 | -5 | -9 | -3 |
| Cash Flow From Investing Activity ⓘ | -1 | 0 | -2 | -1 | -1 | -8 | -1 | 3 | 5 | -141 |
| Capex | -1 | -1 | -2 | -1 | -1 | 0 | -2 | 0 | -1 | -3 |
| Net Investments | 0 | 0 | 0 | 0 | 0 | -8 | 0 | 3 | 5 | -131 |
| Others ⓘ | 0 | 1 | 0 | 0 | 0 | 0 | 1 | 1 | 2 | -7 |
| Cash Flow From Financing Activityⓘ | -4 | -2 | 9 | -18 | 4 | -20 | 1 | 0 | -12 | 154 |
| Net Proceeds from Shares ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 152 |
| Net Proceeds from Borrowing ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Paid ⓘ | -3 | -3 | -4 | -4 | -4 | -3 | -2 | -2 | -1 | -1 |
| Dividend Paid ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Others ⓘ | 0 | 2 | 13 | -14 | 9 | -17 | 3 | 2 | -11 | 2 |
| Net Cash Flow ⓘ | 1 | 0 | -1 | 1 | 0 | 0 | 4 | 0 | 0 | 40 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Ratios | ||||||||||
| ROE (%) | 33.55 | 27.06 | 36.63 | 42.63 | 25.28 | 15.91 | 9.29 | 18.46 | 23.76 | 5.28 |
| ROCE (%) | 24.52 | 23.14 | 29.85 | 39.98 | 27.12 | 17.94 | 14.02 | 21.3 | 28.31 | 7.25 |
| Asset Turnover Ratio | 3.79 | 3.45 | 3.35 | 3.03 | 3.2 | 2.64 | 1.87 | 2.23 | 2.58 | 1.09 |
| PAT to CFO Conversion(x) | 1 | 0.2 | -0.89 | 1.19 | -0.29 | 2.8 | 0.57 | -0.19 | 0.24 | 2.55 | Working Capital Days |
| Receivable Days | 49 | 44 | 44 | 49 | 41 | 42 | 65 | 56 | 49 | 70 |
| Inventory Days | 26 | 36 | 38 | 41 | 42 | 46 | 42 | 45 | 39 | 38 |
| Payable Days | 9 | 9 | 5 | 4 | 4 | 6 | 6 | 6 | 4 | 7 |
JG Chemicals Limited was initially formed as a partnership firm on March 15, 1975 under the name ‘J.G.Chemicals’ at West Bengal as a partnership at will which was registered under the Indian Partnership Act, 1932 with the Registrar of Firms, West Bengal in 1983. Subsequently, the partnership firm was converted into a joint stock company and was registered as a private limited company in the name and style ‘J.G.Chemicals Private Limited’ pursuant to a certificate of incorporation dated June 28, 2001, issued by RoC, in accordance with provisions of the Companies Act, 1956. Thereafter, pursuant to a resolution passed at the meeting of the Board of Directors held on March 16, 2022, and a special resolution of the Shareholders at the EGM held on April 30, 2022, the name of the Company was changed to J.G.Chemicals Limited, pursuant to its conversion into a public limited company. A fresh certificate of incorporation dated May 24, 2022, consequent upon conversion, was issued by the RoC.
JG Chemicals is India’s largest zinc oxide manufacturer in terms of production and revenue for zinc oxide manufacturing through French process, which is the dominant production technology for producing zinc oxide and has been adopted by all the major producers in Americas, Europe and Asia. The market share of the company is around 30% as on March 2022. It sells many grades of zinc oxide and are among the top ten manufacturers of zinc oxides globally. Since its incorporation in 2001, the company has expanded its business and scale of operations and has grown into a large, diversified zinc oxide player with a global footprint. Its product caters to a wide spectrum of industrial applications, including in the rubber (tyre & other rubber products), ceramics, paints & coatings, pharmaceuticals & cosmetics, electronics & batteries, agro-chemicals & fertilizers, speciality chemicals, lubricants, oil & gas and animal feed.
Owing to its legacy of over four decades in manufacturing businesses, it benefits from its experience in catering to a wide array of customers and it has built a long-standing relationship with customers across end-user industries in the tyres, ceramics, rubber, paints, cosmetics and batteries industry. As a manufacturer of zinc oxide, it is a pre-requisite in most of its end-use industries for its products to be customised according to the specifications by customers, which usually acts as a significant entry barrier. Further, high cost of product development, complexity of the chemistry involved in innovating and tailoring its products to the customised needs of its customers, which requires necessary technical expertise and lengthy and stringent supplier qualification process are the other entry barriers in its business.
Business area of the company
The company is engaged in the business of manufacturing of Zinc Oxide & allied product.
Awards, accreditations and accolades
History and milestones
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