Jash Engineering Limited

Industrials — Specialty Industrial Machinery · NSE

₹548.80+₹19.05 (+3.60%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

CAUTION

Risk

Low

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

In simple words: Strong business and financial position, though profits are falling even as sales grow. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:56 pm

Understanding the Business

Company site ↗

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

What does this company do?

Jash Engineering Limited manufactures, trades in, and sells various engineering products for general engineering, water and wastewater, power plant, and bulk solids handling industries in India and internationally.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees662

Annual revenue₹727 Cr

How does it make money?

Turns over ₹727 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 662 employees supports ₹1.10 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.10 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA LIMITED. 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 17.2% 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 ROE17.1%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 15.0% and earnings to grow about 26.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+15.0%

Est. earnings growth+26.3%

Analysts2

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +84% 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+84%

Margin effect-20%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 40.3x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 39.9x
✗ P/B of 6.65x is a steep premium to book

Quality vs. Valuation

Company Quality

66/ 100

Good

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

Valuation

46/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

40.3x

3Y Median

39.9x

40 monthly readings · mean 41.5x · range 25.0x–59.4x

Sector Median

66.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 39.9x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 39% below the peer median of 66.2x.

vs. its own history

Fair

39.9x median over 40 months · +1%

vs. sector peers

Cheap

66.2x median of 4 peers · -39%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

29.4x

PEG

2.92

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.20x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 18.2% to 16.6% over 3 years.
Return on equity is falling
ROE has dropped from 21.7% to 14.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 24.8% to 17.2% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Debt is increasingFinancial
Total debt is up 25% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 39% 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 ₹19 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?

Margins are being competed away
EBITDA margin has fallen from 18.2% to 16.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 21.7% to 14.7%. 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

1Revenue growth stays above 17% a year✓ 22.6% CAGR
Latest reported year was 17.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 16.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹19 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 14%✓ 17.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹3,452 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

40.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.65x

Rich

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

EPS (TTM)

₹13.61

Profitable

Profitable on a per-share basis

ROE

14.7%

Moderate

Moderate capital efficiency

ROCE

17.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.20x

Low

Conservative leverage

Revenue Growth (YoY)

17.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-13.1%

Falling

Profits are shrinking

Dividend Yield

0.29%

Modest

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

Free Cash Flow

₹19 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

25.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

1.7%

Weak

Thin margins leave little room for error

Net Margin

11.4%

Good

Strong bottom-line conversion

Current Ratio

2.04

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.18

Defensive

Steadier than the market

52W Range Position

76%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

572.5 / 523.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

33.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹395 Cr	₹508 Cr	₹725 Cr	₹727 Cr	+22.6%
EBITDA	₹72 Cr	₹103 Cr	₹137 Cr	₹121 Cr	+18.8%
EBITDA Margin	18.2%	20.2%	18.9%	16.6%	—
PAT (Net Profit)	₹52 Cr	₹67 Cr	₹88 Cr	₹76 Cr	+13.8%
EPS	₹8.52	₹10.91	₹13.78	₹11.97	+12.0%
ROE	21.7%	19.0%	20.3%	14.7%	—
ROCE	24.8%	24.6%	25.2%	17.2%	—
Total Debt	₹82 Cr	₹80 Cr	₹99 Cr	₹103 Cr	+7.8%
Free Cash Flow	₹18 Cr	₹34 Cr	₹10 Cr	₹19 Cr	+2.0%

🟢 Revenue has grown at 22.6% a year over 3 years.

🟢 EBITDA has grown at 18.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 18.2% to 16.6% over 3 years (-1.6 pts).

🟢 PAT (Net Profit) has grown at 13.8% a year over 3 years.

🟢 EPS has grown at 12.0% a year over 3 years.

🔴 ROE has fallen from 21.7% to 14.7% over 3 years (-7.0 pts).

🔴 ROCE has fallen from 24.8% to 17.2% over 3 years (-7.5 pts).

🔴 Total Debt has grown at 7.8% a year over 3 years.

🟢 Free Cash Flow has grown at 2.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹881 Cr

Total Liabilities

₹356 Cr

Cash & Equivalents

₹13 Cr

Operating Cash Flow

₹56 Cr

Capex

-₹37 Cr

Shareholding (proxy)

Institutional Holding

3.0%

Insider Holding

50.1%

Corporate Actions

Dividend Rate

₹1.6

Ex-Dividend Date

16 Sept 2026

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹623

+13.5% vs CMP

Target Range

₹610 – ₹636

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive3 mixed2 general

Jash Engineering submits AGM voting results; FY26 PAT falls 13% to ₹75.5 crore

scanx.trade, 18 OctResults

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

JASH Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Jash Engineering (NSEI:JASH) Stock Forecast & Analyst Predictions

Simply Wall Street, 13 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Jash Engineering Share Price: fresh 52-week high update

Univest, 30 Sept

Compare with

Equitymaster, 16 Oct

Dividend Bonanza: Jash Engineering Proposes 50 per cent Final Payout

Dalal Street Investment Journal, 24 SeptCapital return

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

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth · Profitability · Risk

WeakValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

All 5 tripwires holding · see Key things to watch ↑