Jayant Agro-Organics Limited

Basic Materials — Specialty Chemicals · NSE

₹217.00+₹8.88 (+4.27%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

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

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Thin profit margins are 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 Jayant Agro-Organics Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Jayant Agro-Organics Limited, an oleochemical company, engages in manufacturing and trading of castor oil and its derivatives in India and internationally. The company operates through three segments: Castor Oil, Castor Derivatives, and Power Generation.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees700

Annual revenue₹2,375 Cr

How does it make money?

Turns over ₹2,375 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 700 employees supports ₹3.39 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.39 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL 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?Little sign of one

Returns on capital of 12.2% 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 ROE22.3%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -13% while net margin moved +18% 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-13%

Margin effect+18%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 4.7% a year
✗ Profit CAGR of only 0.7%

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

70/ 100

Cheap

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

12.0x

3Y Median

13.5x

40 monthly readings · mean 13.8x · range 8.2x–18.7x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 12% below its 3y median of 13.5x. 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 70% below the peer median of 40.4x.

vs. its own history

Fair

13.5x median over 40 months · -12%

vs. sector peers

Cheap

40.4x median of 4 peers · -70%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.3x

PEG

16.80

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 Attention0

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

Red Flags

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 94% against revenue up -13% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 39% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 70% 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 ₹9 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?

Sales are being booked faster than collected
Receivables are up 94% against revenue up -13%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 2%✓ 4.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹9 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 9%✓ 12.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 6.0x
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 · 4 neutral · 0 weak

Market Cap

₹651 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.0x

Cheap

Cheap against the generic band

P/B Ratio

1.07x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹18.11

Profitable

Profitable on a per-share basis

ROE

8.3%

Moderate

Moderate capital efficiency

ROCE

12.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.20x

Low

Conservative leverage

Revenue Growth (YoY)

18.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

24.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.61%

Modest

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

Free Cash Flow

₹9 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

11.2x

Improving

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

Operating Margin

4.2%

Weak

Thin margins leave little room for error

Net Margin

2.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.07

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.55

Defensive

Steadier than the market

52W Range Position

59%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

221.5 / 225.3

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

38.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,741 Cr	₹2,118 Cr	₹2,497 Cr	₹2,375 Cr	-4.7%
EBITDA	₹96 Cr	₹97 Cr	₹109 Cr	₹105 Cr	+3.0%
EBITDA Margin	3.5%	4.6%	4.4%	4.4%	—
PAT (Net Profit)	₹49 Cr	₹51 Cr	₹55 Cr	₹50 Cr	+0.7%
EPS	₹16.45	₹17.11	₹18.3	₹16.8	+0.7%
ROE	9.7%	9.5%	9.5%	8.3%	—
ROCE	13.9%	13.1%	13.7%	12.2%	—
Total Debt	₹94 Cr	₹159 Cr	₹110 Cr	₹131 Cr	+11.7%
Free Cash Flow	₹74 Cr	-₹38 Cr	₹90 Cr	₹9 Cr	-49.8%

🔴 Revenue has shrunk at 4.7% a year over 3 years.

🟢 EBITDA has grown at 3.0% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 4.4% over 3 years.

🟡 PAT (Net Profit) has been broadly flat over 3 years (0.7% a year).

🟡 EPS has been broadly flat over 3 years (0.7% a year).

🔴 ROE has fallen from 9.7% to 8.3% over 3 years (-1.5 pts).

🔴 ROCE has fallen from 13.9% to 12.2% over 3 years (-1.7 pts).

🔴 Total Debt has grown at 11.7% a year over 3 years.

🔴 Free Cash Flow has shrunk at 49.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹982 Cr

Total Liabilities

₹340 Cr

Cash & Equivalents

₹12 Cr

Operating Cash Flow

₹44 Cr

Capex

-₹34 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.4%

Corporate Actions

Dividend Rate

₹3.5

Ex-Dividend Date

07 Aug 2026

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 positive2 mixed3 general

Jayant Agro Organics vs Nifty 50: Returns Compared

Univest, 30 Sept

Jayant Agro Organics confirms ₹3.50 dividend record date in AGM notice

scanx.trade, 31 JulCapital return

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

Jayant Agro Reports 46% EBITDA Growth to ₹33.3 Crore with Improved 5.2% Margins

Sahi, 29 May

Is Jayant Agro Organics the Best Stock in Its Sector? A Look at the Numbers

Univest, 29 Sept

Jayant Agro completes VCPL stake buy for ₹25.37 crore

scanx.trade, 22 MayM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Jayant Agro-Organics Share Price news after intraday gain

Univest, 08 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Risk

WeakGrowth · Profitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑