BSE: 522285 | NSE: JAYNECOIND | Steel & Iron Products | Small Cap
Past 10 year's financial track record analysis by Moneyworks4me indicates that Jayaswal Neco Industries Ltd is a average quality company.
The key valuation ratios of Jayaswal Neco Industries Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.
The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Jayaswal Neco Industries Ltd is likely to Fall 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 % ⓘ | 3.4% | 1.8% | 0.9% | 1.2% | 5.5% | -16.4% | 12.5% | 68.1% | 8.8% | 13.9% | - |
| Value Creation Index ⓘ | -0.8 | -0.9 | -0.9 | -0.9 | -0.6 | NA | NA | 3.9 | -0.4 | 0.0 | - |
Growth Parameters ⓘGrowth Parameters Colour Code Guide ⓘ | |||||||||||
| Sales ⓘ | 3,024 | 2,642 | 2,531 | 3,477 | 4,227 | 3,632 | 3,705 | 5,959 | 6,343 | 5,934 | 5,635 |
| Sales YoY Gr. | - | -12.6% | -4.2% | 37.4% | 21.5% | -14.1% | 2% | 60.8% | 6.5% | -6.5% | - |
| Adj EPS ⓘ | 1 | -0.6 | -7.3 | -7.8 | -6.9 | -17.3 | -8.8 | 10.7 | 2.8 | 2.3 | 0.3 |
| YoY Gr. | - | -154.8% | NA | NA | NA | NA | NA | NA | -74.1% | -19.1% | - |
| BVPS (₹) ⓘ | 34.7 | 32.9 | 25.6 | 18 | 11 | -12.6 | -21.3 | 18.9 | 21.2 | 23.3 | 22.6 |
| Adj Net Profit ⓘ | 66.4 | -36.6 | -463 | -499 | -443 | -1,106 | -559 | 1,041 | 269 | 218 | 25 |
| Cash Flow from Ops. ⓘ | 333 | 498 | 272 | 260 | 374 | 313 | 448 | 860 | 739 | 681 | - |
| Debt/CF from Ops. ⓘ | 12.1 | 8.6 | 15.4 | 15.6 | 10.5 | 12.6 | 8.5 | 4.5 | 4.6 | 4.7 | - |
CAGR Colour Code Guide ⓘ
| 9 Years | 5 Years | 3 Years | 1 Years | |||||
|---|---|---|---|---|---|---|---|---|
| Sales ⓘ | 7.8% | 7% | 17% | -6.5% | ||||
| Adj EPS ⓘ | 9% | NA | NA | -19.1% | ||||
| BVPSⓘ | -4.3% | 16.3% | NA | 10% | ||||
| Share Price | 11.8% | 61.8% | 12.6% | -9.6% | ||||
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 % ⓘ | 3.1 | -1.7 | -24.8 | -35.8 | -47.9 | 2075.1 | 51.5 | 442.3 | 13.9 | 10.1 | 1.1 |
| Op. Profit Mgn % ⓘ | 11.8 | 8.9 | 11 | 8.9 | 12.4 | 5.6 | 16.2 | 21.4 | 12.3 | 17.2 | 15.2 |
| Net Profit Mgn % ⓘ | 2.2 | -1.4 | -18.3 | -14.4 | -10.5 | -30.5 | -15.1 | 17.5 | 4.3 | 3.7 | 0.5 |
| Debt to Equity ⓘ | 1.8 | 2 | 2.6 | 3.5 | 5.6 | -4.9 | -2.8 | 2.1 | 1.7 | 1.4 | 1.3 |
| Working Cap Days ⓘ | 292 | 283 | 234 | 149 | 118 | 141 | 137 | 106 | 115 | 135 | 77 |
| Cash Conv. Cycle ⓘ | 79 | 89 | 97 | 81 | 78 | 95 | 94 | 72 | 80 | 92 | 49 |
Sales growth is growing at healthy rate in last 3 years 17.00%
Debt to equity has declined versus last 3 years average to 1.42
Return on Equity has declined versus last 3 years average to 1.10%
Sales growth is not so good in last 4 quarters at -7.88%
| Standalone | Consolidated | |
|---|---|---|
| TTM EPS (₹) | 0.3 | -1 |
| TTM Sales (₹ Cr.) | 5,635 | 2,633 |
| BVPS (₹.) ⓘ | 22.6 | 0 |
| Reserves (₹ Cr.) ⓘ | 1,224 | 1,482 |
| P/BV ⓘ | 1.81 | 0.00 |
| PE ⓘ | 159.61 | 0.00 |
| From the Market | |
|---|---|
| 52 Week Low / High (₹) | 38.66 / 65.46 |
| All Time Low / High (₹) | 1.70 / 120.00 |
| Market Cap (₹ Cr.) | 3,974 |
| Equity (₹ Cr.) | 971 |
| Face Value (₹) | 10 |
| Industry PE ⓘ | 21.7 |
| Pledged * | 100.00 | 100.00 | 100.00 | 100.00 | 100.00 | 100.00 | 100.00 | 100.00 | 100.00 | 100.00 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 3,024 | 2,642 | 2,531 | 3,477 | 4,227 | 3,632 | 3,705 | 5,959 | 6,343 | 5,934 |
| Operating Expenses ⓘ | 2,667 | 2,421 | 2,252 | 3,169 | 3,705 | 3,434 | 3,103 | 4,686 | 5,578 | 4,913 |
| Manufacturing Costs | 451 | 405 | 604 | 949 | 1,118 | 829 | 816 | 1,392 | 1,584 | 1,842 |
| Material Costs | 1,932 | 1,745 | 1,338 | 1,820 | 2,145 | 2,186 | 1,804 | 2,710 | 3,372 | 2,418 |
| Employee Cost | 158 | 136 | 174 | 198 | 219 | 226 | 220 | 254 | 277 | 328 |
| Other Costs ⓘ | 126 | 135 | 136 | 203 | 223 | 193 | 263 | 330 | 346 | 325 |
| Operating Profit ⓘ | 357 | 221 | 278 | 308 | 522 | 199 | 602 | 1,273 | 764 | 1,021 |
| Operating Profit Margin (%) | 11.8% | 8.4% | 11.0% | 8.9% | 12.3% | 5.5% | 16.2% | 21.4% | 12.1% | 17.2% |
| Other Income ⓘ | 20 | 35 | 32 | 25 | 19 | 10 | 15 | 33 | 40 | 26 |
| Interest ⓘ | 186 | 225 | 550 | 659 | 712 | 868 | 909 | 459 | 453 | 470 |
| Depreciation ⓘ | 83 | 82 | 255 | 273 | 273 | 276 | 267 | 261 | 266 | 266 |
| Exceptional Items ⓘ | -92 | -58 | 0 | 7 | 0 | -568 | 0 | 1,724 | -51 | -19 |
| Profit Before Tax ⓘ | 17 | -109 | -495 | -592 | -444 | -1,504 | -559 | 2,311 | 34 | 291 |
| Tax ⓘ | 15 | -22 | -36 | -101 | 0 | 1 | -1 | 64 | -193 | 81 |
| Profit After Tax | 2 | -87 | -459 | -491 | -444 | -1,504 | -558 | 2,247 | 227 | 210 |
| PAT Margin (%) | 0.1% | -3.3% | -18.1% | -14.1% | -10.5% | -41.4% | -15.1% | 37.7% | 3.6% | 3.5% |
| Adjusted EPS (₹) | 0.0 | -1.4 | -7.2 | -7.7 | -7.0 | -23.6 | -8.7 | 23.1 | 2.3 | 2.2 |
| 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 | 2,218 | 2,098 | 1,637 | 1,150 | 700 | -806 | -1,363 | 1,833 | 2,058 | 2,263 |
| Share Capital ⓘ | 639 | 639 | 639 | 639 | 639 | 639 | 639 | 971 | 971 | 971 |
| Reserves ⓘ | 1,579 | 1,459 | 999 | 511 | 61 | -1,445 | -2,001 | 862 | 1,087 | 1,292 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Debt | 3,803 | 4,102 | 3,853 | 3,522 | 3,234 | 3,000 | 2,638 | 3,459 | 48 | 3,055 |
| Long Term Debt | 2,958 | 3,006 | 2,807 | 2,602 | 2,367 | 2,133 | 1,880 | 3,436 | 26 | 3,055 |
| Short Term Debt | 845 | 1,096 | 1,046 | 920 | 867 | 867 | 757 | 22 | 22 | 0 |
| Trade Payables | 432 | 183 | 286 | 280 | 333 | 281 | 179 | 271 | 320 | 289 |
| Others Liabilities ⓘ | 753 | 694 | 1,188 | 1,813 | 2,449 | 3,287 | 4,446 | 759 | 3,498 | 443 |
| Total Liabilities ⓘ | 7,207 | 7,077 | 6,965 | 6,765 | 6,716 | 5,762 | 5,901 | 6,322 | 5,924 | 6,050 |
Fixed Assets | ||||||||||
| Gross Block | 2,353 | 2,282 | 5,123 | 5,508 | 5,522 | 5,533 | 5,551 | 5,561 | 5,618 | 5,664 |
| Accumulated Depreciation | 952 | 82 | 337 | 609 | 881 | 1,158 | 1,424 | 1,682 | 1,948 | 2,213 |
| Net Fixed Assetsⓘ | 1,401 | 2,200 | 4,785 | 4,899 | 4,641 | 4,376 | 4,127 | 3,879 | 3,671 | 3,451 |
| CWIP ⓘ | 3,137 | 2,847 | 457 | 493 | 493 | 82 | 82 | 95 | 94 | 219 |
| Investmentsⓘ | 15 | 1 | 1 | 1 | 0 | 0 | 0 | 0 | 0 | 0 |
| Inventories | 925 | 630 | 681 | 543 | 834 | 854 | 899 | 1,208 | 1,284 | 1,495 |
| Trade Receivables | 314 | 313 | 411 | 561 | 486 | 351 | 328 | 457 | 469 | 419 |
| Cash Equivalents | 60 | 42 | 58 | 113 | 99 | 116 | 369 | 485 | 283 | 140 |
| Others Assetsⓘ | 1,354 | 1,044 | 571 | 155 | 163 | -18 | 97 | 198 | 124 | 327 |
| Total Assets ⓘ | 7,207 | 7,077 | 6,965 | 6,765 | 6,716 | 5,762 | 5,901 | 6,322 | 5,924 | 6,050 |
| 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 ⓘ | 333 | 498 | 272 | 260 | 374 | 313 | 448 | 860 | 739 | 681 |
| PBT ⓘ | 17 | -109 | -495 | -592 | -444 | -1,504 | -559 | 2,311 | 34 | 291 |
| Adjustment ⓘ | 262 | 351 | 785 | 921 | 987 | 1,718 | 1,203 | -1,006 | 755 | 740 |
| Changes in Working Capital ⓘ | 66 | 255 | -15 | -71 | -167 | 100 | -204 | -441 | 1 | -313 |
| Tax Paid ⓘ | -12 | 1 | -3 | 2 | -1 | -1 | 8 | -4 | 0 | -18 |
| Cash Flow From Investing Activity ⓘ | -515 | -27 | 32 | 25 | -13 | -29 | -17 | -26 | -57 | -177 |
| Capex | -522 | -151 | -42 | -5 | -16 | -31 | -18 | -30 | -64 | -183 |
| Net Investments | 0 | 1 | 0 | 1 | 1 | 0 | 0 | 0 | 0 | 0 |
| Others ⓘ | 8 | 124 | 75 | 29 | 1 | 2 | 1 | 4 | 7 | 5 |
| Cash Flow From Financing Activityⓘ | -10 | -484 | -292 | -225 | -372 | -284 | -150 | -943 | -792 | -486 |
| Net Proceeds from Shares ⓘ | 100 | 0 | 0 | 58 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Proceeds from Borrowing ⓘ | 533 | -16 | -43 | -21 | -49 | -8 | -8 | -662 | -739 | -3,358 |
| Interest Paid ⓘ | -481 | -556 | -194 | -136 | -272 | -255 | -38 | -70 | -144 | -480 |
| Dividend Paid ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Others ⓘ | -162 | 89 | -55 | -126 | -51 | -21 | -105 | -211 | 91 | 3,352 |
| Net Cash Flow ⓘ | -192 | -13 | 12 | 59 | -12 | 0 | 281 | -109 | -110 | 17 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Ratios | ||||||||||
| ROE (%) | 0.09 | -4.03 | -24.6 | -35.26 | -48.01 | N/A | N/A | 955.56 | 11.66 | 9.72 |
| ROCE (%) | 3.38 | 1.83 | 0.9 | 1.21 | 5.45 | N/A | N/A | 68.11 | 8.75 | 13.9 |
| Asset Turnover Ratio | 0.49 | 0.41 | 0.41 | 0.52 | 0.63 | 0.58 | 0.64 | 0.97 | 1.04 | 0.99 |
| PAT to CFO Conversion(x) | 166.5 | N/A | N/A | N/A | N/A | N/A | N/A | 0.38 | 3.26 | 3.24 | Working Capital Days |
| Receivable Days | 39 | 39 | 46 | 50 | 45 | 42 | 33 | 24 | 27 | 27 |
| Inventory Days | 93 | 96 | 84 | 62 | 59 | 85 | 86 | 65 | 72 | 85 |
| Payable Days | 76 | 64 | 64 | 57 | 52 | 51 | 47 | 30 | 32 | 46 |
Jayaswal Neco Industries Limited, a NECO group company, promoted by B L Shaw, the chairman of the company, It is one of India’s largest industrial groups and has its humble origin with a simple grey iron foundry established at Nagpur in 1976. The company was formerly known as Jayaswals Neco Limited and changed its name to Jayaswal Neco Industries Limited in November 2007.
Today, the group is one of the largest iron and steel & ferrous and non ferrous casting manufacturer, with an installed capacity to produce 1 million TPA of iron and steel & more then 175,000 TPA of ferrous and non ferrous castings. NECO group has 16 manufacturing units and 5 group companies.
Jayaswal Neco Industries Limited manufactures and sells iron and steel, and ferrous and non ferrous castings in India. The company’s Steel segment engages in the manufacture and sale of pig iron, billets, rolled products, and sponge iron. This segment offers its products to the automobile, auto component, transmission line tower, and seamless tube and flange manufacturers.
The company’s iron and steel castings segment manufactures and sells engineering and automotive castings, including brake drums, clutch housing, hubs, gear box housing, suspension items, housings, differential housing, pistons, railway inserts, valve body, pipe fittings, and other engineering castings.
Jayaswal Neco produces iron and steel products for catering to the need of automobile, auto component, transmission line tower, seamless tube & flange manufacturers. The product range includes HR & CR Sheets and coils, bars & rods apart from carbon & alloy steel.
The plant was established in collaboration with the China Shougang International Trade & Engineering Corporation and is located on a 1200 acre land at Raipur in Chhattisgarh, the steel belt of the country. It has a 15 km long internal railway siding.
The availability of skilled labour and proximity to raw materials like iron ore and thermal coal are cost competitive advantages for the company. The sales are spread across the country. Currently the entire requirement of thermal coal is met through captive coal mines.
The plant has an installed capacity for producing 600,000 TPA of pig iron, 480,000 TPA of sinter and 300,000 TPA of steel billets. It is in the process of commissioning Wire Rod and Bar Mill of 450,000 TPA capacity.This plant is equipped with a non recovery type coke oven plant of 100,000 TPA capacity with stamp charging system. The blast furnace has a capacity to produce to 600,000 TPA of basic grade as well as foundry grade high quality pig iron.
The steel melt shop at the plant produces steel billets of special alloy steel, free cutting, ball bearing, high tensile steel for transmission towers and special steel round billets for seamless pipe manufacture.
The steel plant at Raipur also has 2 rotary kilns for manufacturing sponge iron having capacity of 255,000 TPA with a captive generation power plant.The plant has set up captive power plants which include a waste heat recovery based 15.5 MW power plant; the company has power generation capacity of 45 MW and is in the process of adding further capacity.
Product range of the company includes
Different Divisions of the company are:
Recent developments
Jayaswal Neco Industries at the various meetings of the secured creditors of the company held on June 9, 2009, in accordance with the directions of the High Court of Bombay, Nagpur Bench, Nagpur, has approved, all the three Schemes of Arrangement (i) The Company and Inertia Iron and Steel Industries Pvt. Ltd (ii) The Company and Abhijeet Infrastructure Ltd (iii) The Company and Corporate Ispat Alloys Ltd
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Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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