Jagatjit Industries Limited

Consumer Defensive — Beverages - Wineries & Distilleries · BSE

₹133.25−₹0.25 (−0.19%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Jagatjit Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Jagatjit Industries Limited manufactures and sale of liquor products in India and internationally. It operates through Beverages, Food, Distillery (Ethanol), and Others segments.

IndustryBeverages - Wineries & Distilleries

SectorConsumer Defensive

Employees1,014

Annual revenue₹267 Cr

How does it make money?

Turns over ₹267 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹-12 left at the operating level before interest, tax and depreciation. Each of its 1,014 employees supports ₹26.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹26.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 10.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -66% while net margin moved +307% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-66%

Margin effect+307%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 5.77x is high — earnings must service borrowings before shareholders see anything
✗ Current ratio of 0.52 — short-term liabilities exceed short-term assets
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
✗ Interest cover of only 1.3x — little room if profits dip
✗ Debt has grown 17.7% a year — worth checking what it bought

Quality vs. Valuation

Company Quality

42/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

42/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

56.7x

3Y Median

115.0x

40 monthly readings · mean 111.8x · range 62.9x–176.9x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 51% below its 3y median of 115.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 31% above the peer median of 43.3x.

vs. its own history

Cheap

115.0x median over 40 months · -51%

vs. sector peers

Expensive

43.3x median of 4 peers · +31%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

—

PEG

4.94

What's Good / What's Bad

🟢 What's Going Well1

Return on equity is rising
ROE has improved from 10.9% to 15.7%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

9 items require attention · 8 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 63% over 3 years, from ₹223 Cr to ₹363 Cr.
🔴High leverageFinancial
Debt/Equity of 5.77x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.3x — little room if earnings dip.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 18.5 points, from 6.6% to -11.9%.
🔴Receivables growing faster than salesFinancial
Receivables up 22% against revenue up -66% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 33% against revenue up -66% — stock may not be moving.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.52 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 51% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 6.6% to -11.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 5.77x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 22% against revenue up -66%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 31% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above -14%✓ -11.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹191 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ 1.3x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✓ 10.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 115.0x✓ 56.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹623 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

56.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

9.88x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹2.35

Profitable

Profitable on a per-share basis

ROE

15.7%

Strong

Strong capital efficiency

ROCE

10.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

5.77x

High

High leverage

Revenue Growth (YoY)

74.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

142.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹191 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-2.9%

Weak

Thin margins leave little room for error

Net Margin

2.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.52

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.52

Defensive

Steadier than the market

52W Range Position

18%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

141.6 / 154.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹786 Cr	₹582 Cr	₹512 Cr	₹267 Cr	-30.2%
EBITDA	₹52 Cr	₹44 Cr	₹17 Cr	-₹32 Cr	—
EBITDA Margin	6.6%	7.6%	3.3%	-11.9%	—
PAT (Net Profit)	₹7 Cr	₹8 Cr	-₹23 Cr	₹10 Cr	+11.5%
EPS	₹1.5	₹1.61	₹-5.01	₹2.12	+12.2%
ROE	10.9%	10.0%	-43.6%	15.7%	—
ROCE	10.7%	8.0%	0.8%	10.5%	—
Total Debt	₹223 Cr	₹271 Cr	₹404 Cr	₹363 Cr	+17.7%
Free Cash Flow	₹8 Cr	-₹25 Cr	-₹155 Cr	-₹191 Cr	—

🔴 Revenue has shrunk at 30.2% a year over 3 years.

🔴 EBITDA has turned negative, from ₹52 Cr to -₹32 Cr.

🔴 EBITDA Margin has fallen from 6.6% to -11.9% over 3 years (-18.5 pts).

🟢 PAT (Net Profit) has grown at 11.5% a year over 3 years.

🟢 EPS has grown at 12.2% a year over 3 years.

🟢 ROE has risen from 10.9% to 15.7% over 3 years (+4.7 pts).

🟡 ROCE has held roughly flat at 10.5% over 3 years.

🔴 Total Debt has grown at 17.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹8 Cr to -₹191 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹719 Cr

Total Liabilities

₹656 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹75 Cr

Capex

-₹116 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

87.3%

Corporate Actions

Ex-Dividend Date

22 Apr 2004

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

2 mixed4 general

Jagatjit Industries Ltd. Lower Circuit Today: Price, Data and Peers

Univest, 01 Oct

Jagatjit Industries Q1 Results: Board Meeting Rescheduled To Aug 13

scanx.trade, 11 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Jagatjit Industries to consider Q4FY26 results on May 28

scanx.trade, 20 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

JAGAJITIND Stock Price and Chart — BSE:JAGAJITIND

TradingView, 26 Aug

Jagatjit Industries Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 16 Sept

Promoters of JIL plan to shed 17-18%stake, aim at premium push to portfolio

The Times of India, 07 Mar

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongProfitability

MiddlingBusiness Quality

WeakFinancial Health · Growth · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 8 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑