Jaro Institute of Technology Management and Research Limited

Consumer Defensive — Education & Training Services · NSE

₹409.00+₹4.45 (+1.10%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

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, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Jaro Institute of Technology Management and Research Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Jaro Institute of Technology Management and Research Limited, together with its subsidiaries, provides student enrolments and program management services in India. The company offers educational courses and degrees offered by the universities/institutes.

IndustryEducation & Training Services

SectorConsumer Defensive

Employees957

Annual revenue₹274 Cr

How does it make money?

Turns over ₹274 Cr a year. Of every ₹100 of sales, about ₹19 reaches shareholders as profit, with ₹28 left at the operating level before interest, tax and depreciation. Each of its 957 employees supports ₹28.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹28.6 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?Some evidence

ROCE of 18.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE51.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +124% while net margin moved +103% 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+124%

Margin effect+103%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

75/ 100

Good

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

Valuation

77/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

15.6x

1.3Y Median

20.0x

15 monthly readings · mean 21.1x · range 16.5x–31.9x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 22% below its 1.3y median of 20.0x. 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 64% below the peer median of 43.3x.

vs. its own history

Cheap

20.0x median over 15 months · -22%

vs. sector peers

Cheap

43.3x median of 4 peers · -64%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.8x

PEG

0.24

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 21.4% to 27.7% over 3 years.
Debt is being paid down
Total debt is down 86% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 2.16x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.9% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 21.4% to 27.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 86% 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 22% 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 64% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 2.16x. Interest is payable whether or not the business has a good year.
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.
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

1Revenue growth stays above 23% a year✓ 30.9% CAGR
Latest reported year was 16.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 26%✓ 27.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹57 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 18.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

5 good · 5 neutral · 1 weak

Market Cap

₹911 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.6x

Fair

Fairly valued against the generic band

P/B Ratio

2.47x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹26.27

Profitable

Profitable on a per-share basis

ROE

14.7%

Moderate

Moderate capital efficiency

ROCE

18.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.16x

High

High leverage

Revenue Growth (YoY)

16.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

41.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.47%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹57 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

18.5%

Good

Healthy core-business profitability

Net Margin

19.9%

Good

Strong bottom-line conversion

Current Ratio

10.08

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

425.8 / 442.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

29.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹122 Cr	₹199 Cr	₹252 Cr	₹274 Cr	+30.9%
EBITDA	₹26 Cr	₹66 Cr	₹83 Cr	₹76 Cr	+42.6%
EBITDA Margin	21.4%	33.1%	33.1%	27.7%	—
PAT (Net Profit)	₹12 Cr	₹38 Cr	₹52 Cr	₹53 Cr	+65.6%
EPS	₹5.26	₹18.41	₹23.32	₹24.78	+67.6%
ROE	15.0%	32.3%	30.1%	14.7%	—
ROCE	19.1%	40.7%	37.4%	18.9%	—
Total Debt	₹54 Cr	₹41 Cr	₹64 Cr	₹8 Cr	-47.5%
Free Cash Flow	-₹0 Cr	-₹17 Cr	-₹28 Cr	₹57 Cr	—

🟢 Revenue has grown at 30.9% a year over 3 years.

🟢 EBITDA has grown at 42.6% a year over 3 years.

🟢 EBITDA Margin has risen from 21.4% to 27.7% over 3 years (+6.3 pts).

🟢 PAT (Net Profit) has grown at 65.6% a year over 3 years.

🟢 EPS has grown at 67.6% a year over 3 years.

🟡 ROE has held roughly flat at 14.7% over 3 years.

🟡 ROCE has held roughly flat at 18.9% over 3 years.

🟢 Total Debt has shrunk at 47.5% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹57 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹429 Cr

Total Liabilities

₹68 Cr

Cash & Equivalents

₹24 Cr

Operating Cash Flow

₹57 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

2.3%

Insider Holding

69.1%

Corporate Actions

Dividend Rate

₹6

Ex-Dividend Date

21 Jul 2026

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

1 positive1 mixed4 general

Jaro Institute of Technology Management and Research Limited Actuals & Estimates (NSE:JARO)

TradingView, 18 Aug

Jaro Institute vs Nifty 50: Share Price Performance Compared

Univest, 30 Sept

Why You Might Be Interested In Jaro Institute of Technology Management and Research Limited (NSE:JARO) For Its Upcoming Dividend

Simply Wall Street, 17 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Jaro Institute of Technology Management and Research Ltd Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 29 Aug

Promoter buys over 1% stake in Jaro Institute of Technology

Moneycontrol.com, 13 May

Sunil Singhania’s Abakkus Portfolio: 6 stocks rally up to 75% in CY26; 5 new buys added in Q4

The Economic Times, 30 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

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑