Jayshree Chemicals Limited

Basic Materials — Chemicals · BSE

₹6.61+₹0.06 (+0.92%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, 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. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Jayshree Chemicals Limited engages in the chemical trading business in India. The company trades in crop nutrient chemicals, latex collection cups, and agrowin gels, etc. Jayshree Chemicals Limited was incorporated in 1962 and is based in Kolkata, India.

IndustryChemicals

SectorBasic Materials

Employees8

Annual revenue₹21 Cr

How does it make money?

Turns over ₹21 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹2 left at the operating level before interest, tax and depreciation. Each of its 8 employees supports ₹2.61 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin1.6%

Net margin1.5%

Revenue / employee₹2.61 Cr

Who are its competitors?

The closest listed comparisons in its industry are PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

PIDILITE INDUSTRIES LTDP/E 57.8x · ROE 24.4%

SRF LTDP/E 33.8x · ROE 15.4%

UPL LIMITEDP/E 21.5x · ROE 6.1%

What is its competitive advantage?Little sign of one

Returns on capital of 0.6% 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.

ROCE0.6%

ROE3.0%

Peer median ROE15.4%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +134% while net margin moved -166% 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+134%

Margin effect-166%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.42 — historically steadier than the index
✗ 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
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

28/ 100

Expensive

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

82.6x

Sector Median

33.8x

median of 3 sector peers

⚠️Against its sector it trades 145% above the peer median of 33.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

33.8x median of 3 peers · +145%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

82.6x

P/B

1.99x

EV/EBITDA

59.9x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 86% over 3 years.
Return on equity is rising
ROE has improved from -1.4% to 3.0%.
Return on capital is rising
ROCE has improved from -1.4% to 0.6%.

🔴 What Needs Attention2

Margins are compressing
EBITDA margin has slipped from 6.4% to 1.6% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

5 items require attention · 4 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 5.22x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.0x — little room if earnings dip.
🔴Free cash flow negative for 4 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.
🟡Margins are compressingFinancial
EBITDA margin is down 4.8 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 6.4% to 1.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 5.22x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 145% 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.
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 25% a year✓ 32.7% CAGR
Latest reported year was 55.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 0%✓ 1.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.0x
How much operating profit can fall before interest stops being comfortably covered.
5Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

5 / 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

3 good · 3 neutral · 5 weak

Market Cap

₹19 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

82.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.99x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.08

Profitable

Profitable on a per-share basis

ROE

3.0%

Weak

Weak capital efficiency

ROCE

0.6%

Weak

Low return on total capital employed

Debt/Equity

5.22x

High

High leverage

Revenue Growth (YoY)

55.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

216.2%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹6.61

Operating Margin

-1.5%

Weak

Thin margins leave little room for error

Net Margin

1.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.43

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.42

Defensive

Steadier than the market

52W Range Position

51%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

6.5 / 6.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

52.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹9 Cr	₹13 Cr	₹16 Cr	₹21 Cr	+32.7%
EBITDA	₹1 Cr	-₹2 Cr	₹0 Cr	₹0 Cr	-16.6%
EBITDA Margin	6.4%	-14.0%	0.6%	1.6%	—
PAT (Net Profit)	-₹0 Cr	-₹4 Cr	-₹0 Cr	₹0 Cr	—
EPS	₹-0.07	₹-1.19	₹-0.09	₹0.11	—
ROE	-1.4%	-33.6%	-2.6%	3.0%	—
ROCE	-1.4%	-32.5%	-3.6%	0.6%	—
Total Debt	₹4 Cr	₹1 Cr	₹1 Cr	₹1 Cr	-48.5%
Free Cash Flow	-₹2 Cr	-₹1 Cr	-₹1 Cr	-₹1 Cr	—

🟢 Revenue has grown at 32.7% a year over 3 years.

🔴 EBITDA has shrunk at 16.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 6.4% to 1.6% over 3 years (-4.8 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹0 Cr.

🟢 EPS has turned positive, from ₹-0.07 to ₹0.11.

🟢 ROE has risen from -1.4% to 3.0% over 3 years (+4.4 pts).

🟢 ROCE has risen from -1.4% to 0.6% over 3 years (+2.0 pts).

🟢 Total Debt has shrunk at 48.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹18 Cr

Total Liabilities

₹7 Cr

Total Debt

₹1 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

55.7%

Corporate Actions

Ex-Dividend Date

29 Oct 2009

Peer Comparison

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

Recent News

2 mixed4 general

Jayshree Chemicals Ltd. Peer Comparison – Compare with Others

Value Research, 27 Aug

Jayshree Chemicals returns to profit in Q1FY27, appoints new director

scanx.trade, 17 Jul

Jayshree Chemicals reports standalone net profit of Rs 0.07 crore in the June 2026 quarter

Business Standard, 17 JulResults

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

Jayshree Chemicals closes trading window until Q2FY27 results declaration

scanx.trade, 01 OctResults

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

Jayshree Chemicals Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 27 Aug

Jayshree Tea & Industries Share Price Forecast to 2030

Univest, 20 Jul

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟡Financial HealthAdequate9/20

🟢GrowthStrong18.4/20

🟡ProfitabilityModerate7.1/15

🔴ValuationDemanding5.7/15

🔴RiskHigh3.7/10

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. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 25% a year32.7% CAGR
✓EBITDA margin holds above 0%1.6%
✗Free cash flow remains positive-₹1 Cr
✗Interest cover stays above 3x1.0x
✓Debt / EBITDA stays below 2x1.6x