Jagan Lamps Limited

Consumer Cyclical — Auto Parts · BSE

₹54.68+₹1.99 (+3.78%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

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 Jagan Lamps Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Jagan Lamps Limited engages in the manufacture and sale of automotive bulbs and lights in India and internationally. The company offers halogen and xenon lamps; LED signaling lamps and retrofit lamps; wipers and electrical parts; and miniature lamps, and spare bulb kits.

IndustryAuto Parts

SectorConsumer Cyclical

Employees260

Annual revenue₹42 Cr

How does it make money?

Turns over ₹42 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 260 employees supports ₹16.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹16.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS 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 8.7% 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 ROE23.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -10% while net margin moved -20% 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-10%

Margin effect-20%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 3.5% a year
✗ Profit has declined at 10.4% a year

Quality vs. Valuation

Company Quality

41/ 100

Weak

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

Valuation

83/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

14.9x

3Y Median

20.9x

40 monthly readings · mean 20.2x · range 10.1x–31.1x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 29% below its 3y median of 20.9x. 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 67% below the peer median of 45.7x.

vs. its own history

Cheap

20.9x median over 40 months · -29%

vs. sector peers

Cheap

45.7x median of 4 peers · -67%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 31% over 3 years.
Cash generation is improving
Free cash flow is up 504% over 3 years.
Very low debt
Debt/Equity of 0.12x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 9.8% to 5.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 13.3% to 8.7% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Inventory building faster than salesFinancial
Inventory up 175% against revenue up -10% — stock may not be moving.
🟡Profit is decliningFinancial
Net profit is down 28% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 31% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 29% 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.
Cheaper than its peers
It trades 67% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹6 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 9.8% to 5.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

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

1EBITDA margin holds above 9%✓ 11.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹6 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✓ 8.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 5.0x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

7 / 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

7 good · 3 neutral · 1 weak

Market Cap

₹40 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.9x

Cheap

Cheap against the generic band

P/B Ratio

1.13x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.68

Profitable

Profitable on a per-share basis

ROE

5.4%

Weak

Weak capital efficiency

ROCE

8.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.12x

Low

Conservative leverage

Revenue Growth (YoY)

43.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

184.3%

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

₹6 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

11.2%

Average

Average margins

Net Margin

5.7%

Average

Average bottom-line conversion

Current Ratio

2.54

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.58

Defensive

Steadier than the market

52W Range Position

42%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

56.0 / 57.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹47 Cr	₹51 Cr	₹50 Cr	₹42 Cr	-3.5%
EBITDA	₹5 Cr	₹5 Cr	₹6 Cr	₹5 Cr	-4.0%
EBITDA Margin	11.3%	10.7%	12.1%	11.1%	—
PAT (Net Profit)	₹3 Cr	₹3 Cr	₹3 Cr	₹2 Cr	-10.4%
EPS	₹3.69	₹4.02	₹3.89	₹2.62	-10.8%
ROE	9.8%	9.7%	8.5%	5.4%	—
ROCE	13.3%	12.7%	13.2%	8.7%	—
Total Debt	₹6 Cr	₹5 Cr	₹9 Cr	₹4 Cr	-11.4%
Free Cash Flow	₹1 Cr	-₹0 Cr	-₹3 Cr	₹6 Cr	+82.1%

🔴 Revenue has shrunk at 3.5% a year over 3 years.

🔴 EBITDA has shrunk at 4.0% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 11.1% over 3 years.

🔴 PAT (Net Profit) has shrunk at 10.4% a year over 3 years.

🔴 EPS has shrunk at 10.8% a year over 3 years.

🔴 ROE has fallen from 9.8% to 5.4% over 3 years (-4.3 pts).

🔴 ROCE has fallen from 13.3% to 8.7% over 3 years (-4.6 pts).

🟢 Total Debt has shrunk at 11.4% a year over 3 years.

🟢 Free Cash Flow has grown at 82.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹51 Cr

Total Liabilities

₹16 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹6 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

57.8%

Corporate Actions

Ex-Dividend Date

22 Sept 2022

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 positive1 mixed4 general

Jagan Lamps Q1FY27 net profit surges to ₹105.83 lakh on higher revenue

scanx.trade, 12 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Jagan Lamps shareholders adopt FY26 financials at 34th AGM

scanx.trade, 30 Sept

JAGAN LAMPS LTD. Share Price

Upstox, 25 Mar

Outcome of board meeting of Shalimar Paints

Business Standard, 13 Aug

BIOGEN PHARMACHEM INDUSTRIES LTD Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 19 May

Q4 results 2026: RVNL to IndiGo among companies to declare Q4 results next week; check full list here

Livemint, 24 MayResults

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

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingRisk

WeakBusiness Quality · Growth · Profitability

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑