Breaking Down Jai Corp Limited Financial Health: Key Insights for Investors

Dive into Jai Corp Limited's financial picture where net sales for FY ending March 31, 2025 stood at ₹5,177 million (up 11.8% year‑on‑year) against a gross turnover of ₹511.94 crore with tape woven production of 39,425 MT, quarterly sales of ₹131.25 crore (up 8.54%), and exports contributing ₹51.83 crore (10.13% of revenue); despite plastic processing accounting for 99.94% of turnover, margins tell a mixed story-Q1 June 2025 OPM fell to 6.25% from 11.25% while net profit exploded 659.50% to ₹104.28 crore producing a 79.4% net profit margin (vs 11.4% prior), TTM EPS is ₹9.50 (P/E 13.76) and the balance sheet shows a debt‑free stance (D/E 0.00%) with net cash of ₹1.72 billion, current ratio 20.52 and quick ratio 12.11; valuation metrics include market cap ₹22.99 billion, P/B 1.52 and EV/EBITDA 17.46, while risks like ROE at 5.95%, a PEG of 0.1 and a near‑67% one‑year stock decline contrast modest five‑year sales CAGR of 2.82% and operating profit growth of 12.21%-read on to unpack what these concrete figures mean for investors.

Jai Corp Limited (JAICORPLTD.NS) - Revenue Analysis

• FY 2024-25 net sales: ₹5,177 million (↑11.8% YoY).
• Gross turnover FY 2024-25: ₹511.94 crore; tape woven production: 39,425 MT.
• Revenue mix: Plastic processing 99.94% of turnover; Steel manufacturing 0.06%.
• Exports contributed ₹51.83 crore (10.13% of gross turnover) in FY 2024-25.

• Quarterly momentum: Q1 (June 2025) sales of ₹131.25 crore represent an 8.54% YoY increase, but OPM compressed to 6.25% from 11.25% a year earlier.
• Export penetration: ₹51.83 crore in exports (10.13%) provides diversification but remains a modest portion of turnover.
• Product concentration risk: nearly entire revenue derives from plastic processing (99.94%), exposing the firm to commodity/price and raw-material volatility.

Jai Corp Limited (JAICORPLTD.NS) - Profitability Metrics

Jai Corp Limited reported a dramatic earnings improvement for the quarter ended June 30, 2025, driven by strong bottom-line performance despite a decline in operating profit margin. Key headline figures and context follow.

• Net profit (Q‑ended Jun 30, 2025): ₹104.28 crore - a 659.50% increase from ₹13.73 crore in Q‑ended Jun 30, 2024.
• Net profit margin (Q‑ended Jun 30, 2025): 79.4% vs 11.4% in the corresponding quarter last year.
• Operating profit margin (Q‑ended Jun 30, 2025): 6.25% vs 11.25% in the corresponding quarter last year (decline).
• Trailing twelve months (TTM) EPS: ₹9.50; P/E ratio: 13.76.

Interpretation points worth noting:

• The surge in net profit and net margin suggests sizeable non‑operating gains, one‑off items, tax benefits or reclassification impacts that materially boosted net income relative to operating results.
• The decline in operating profit margin to 6.25% from 11.25% signals cost pressure or softer core business profitability even as the bottom line improved.
• With EPS (TTM) at ₹9.50 and a P/E of 13.76, the market is pricing the stock at a moderate multiple given the recent volatility between operating and net results-investors should reconcile TTM earnings composition.
• Key follow‑up for investors: reconcile quarterly net exceptional items vs recurring operating cash flows, and review segment/one‑time disclosures in the quarter's notes.

For more on ownership, investor activity and context around who's buying and why, see: Exploring Jai Corp Limited Investor Profile: Who's Buying and Why?

Jai Corp Limited (JAICORPLTD.NS) - Debt vs. Equity Structure

• Debt-to-equity ratio: 0.00% (no long-term debt as of 31 March 2025).
• Net worth: ₹14,056 million in FY 2024-25, down 5.4% from ₹14,861 million in FY 2023-24.
• Total assets: ₹14,470 million in FY 2024-25, a 5.6% decrease from ₹15,333 million in FY 2023-24.
• Total liabilities: ₹14,470 million in FY 2024-25, down 5.6% from ₹15,333 million in FY 2023-24.
• Current liabilities: ₹245 million in FY 2024-25, down 12.6% from ₹281 million in FY 2023-24.
• Current ratio: 20.52, indicating strong short-term liquidity.

• With zero long-term debt, Jai Corp Limited (JAICORPLTD.NS) exhibits a capital structure driven by equity and liabilities other than long-term borrowings.
• The simultaneous decline in total assets and net worth reflects a modest contraction in scale, while the pronounced current ratio points to ample short-term coverage of current obligations.
• Reduced current liabilities (₹245 million) relieve near-term cash flow pressure; however, investors should monitor asset base trends and composition of liabilities.

Jai Corp Limited (JAICORPLTD.NS) - Liquidity and Solvency

Key implications for investors:

• Very high current and quick ratios indicate excess short-term liquidity relative to liabilities.
• Net cash of ₹1.72 billion and zero debt reduce financial risk and interest expense sensitivity.
• Interest coverage of 196.90 provides a large buffer even if earnings fluctuate.
• Sharp improvement in net profit margin (79.4% vs 11.4% YoY for the quarter) signals either margin expansion, one-off gains, or operational leverage - warranting inspection of quarterly notes.
• EPS of ₹9.50 and a P/E of 13.76 suggest a valuation that can be assessed relative to peers and growth prospects.

For context on corporate priorities and strategic direction that may affect future liquidity and solvency, see: Mission Statement, Vision, & Core Values (2026) of Jai Corp Limited.

Jai Corp Limited (JAICORPLTD.NS) - Valuation Analysis

• Market capitalization: ₹22.99 billion
• P/E ratio: 13.76 - indicates the price investors pay per rupee of reported earnings
• P/B ratio: 1.52 - modest premium over book value, suggesting partial value recognition of net assets

• EV/EBITDA at 17.46: reflects a relatively elevated enterprise valuation versus operating earnings; useful for comparing capital structure-neutral value to peers.
• EV/Sales at 3.18: suggests the market values each rupee of revenue at ~3.18 rupees of enterprise value; implies expectations of margin or growth vs. lower EV/Sales names.
• EV/FCF (36.15) and EV/OCF (34.06): both point to a high price on cash-generation metrics - either due to subdued cash flows in recent periods or a valuation premium for future cash flow improvement.

• Compare P/E and EV multiples against industry peers and historical company averages to gauge relative cheapness or premium.
• High EV/FCF and EV/OCF warrant drilling into FCF drivers - capex, working capital, one-time items - to assess sustainability.
• P/B of 1.52 suggests some asset-backed value while still leaving room for re-rating if earnings or cash flow recover.

Jai Corp Limited (JAICORPLTD.NS) - Risk Factors

• Low return on equity: ROE is 5.95%, signaling limited profitability relative to shareholders' equity and potential inefficiency in capital use.
• Sharp stock underperformance: the share price has declined nearly 67% over the past 12 months, reflecting market concern or adverse developments.
• Very high short-term liquidity: current ratio of 20.52 indicates ample/current assets relative to short-term liabilities, but such an extreme figure may also imply idle capital or working-capital inefficiencies.
• Valuation tension: PEG ratio of 0.1 suggests the market prices earnings very cheaply relative to forecast growth - this can signal either significant undervaluation or doubts about sustainable future growth.
• Earnings and margin volatility: EPS (TTM) ₹9.50 with P/E of 13.76 looks moderate, yet quarterly net profit margin jumped to 79.4% in June 2025 from 11.4% year-on-year, indicating large quarter-to-quarter variability that increases forecasting risk.

• Margin sustainability risk: the dramatic jump to a 79.4% net margin may be driven by non-recurring gains, extraordinary items, or recognition/timing effects - investors should validate recurring operating performance before extrapolating.
• Growth vs. valuation mismatch: a PEG of 0.1 combined with low ROE suggests market skepticism about consistent future growth despite cheap relative valuation; a careful review of revenue drivers and backlog is required.
• Market sentiment and liquidity risk: a ~67% decline in the last year can increase volatility, reduce investor confidence, and lead to restricted liquidity in adverse markets.
• Operational and capital allocation risk: unusually high current ratio implies potential inefficiencies - cash or receivables sitting idle can depress returns unless redeployed into high-return projects or returned to shareholders.
• Earnings quality risk: with EPS (TTM) ₹9.50 and moderate P/E of 13.76, the headline multiples look attractive, but earnings composition (recurring vs. one-off) and accounting policies need scrutiny.

Jai Corp Limited (JAICORPLTD.NS) - Growth Opportunities

Jai Corp Limited shows a mixed but promising growth profile: modest top-line growth, stronger operating-profit expansion, exceptional recent margin improvement and solid liquidity provide levers for future value creation.

• Five-year net sales CAGR: 2.82% - steady but limited revenue expansion, signaling a need for new demand drivers or acquisitions.
• Operating profit CAGR (5y): 12.21% - operating leverage is improving, indicating better cost control or higher-margin mix.
• June 2025 quarter net profit margin: 79.4% versus 11.4% in June 2024 - a sharp year-over-year profitability improvement that materially lifts EPS and return metrics.
• EPS (TTM): ₹9.50 with P/E = 13.76 - demonstrates earnings power relative to the share price, attractive if sustainable.
• Current ratio: 20.52 - exceptionally strong short-term liquidity, reducing solvency risk and enabling opportunistic investments.

• Margin sustainability: The jump to 79.4% net margin is transformational if recurring - management commentary and segment-level margins should be monitored to confirm permanence.
• Revenue acceleration opportunities: With operating leverage proven (12.21% op-profit CAGR), targeted revenue growth initiatives (product mix, exports, aftermarket services) could amplify net income.
• Capital deployment: A current ratio of 20.52 provides scope for M&A, capex, buybacks, or debt reduction without liquidity strain.
• Valuation play: P/E 13.76 on EPS ₹9.50 positions the stock as potentially attractive if margins and earnings are sustainable.

For strategic context and corporate intent that may affect growth realization, see: Mission Statement, Vision, & Core Values (2026) of Jai Corp Limited.