Jaykay Enterprises Limited

Industrials — Specialty Business Services · NSE

₹217.50+₹0.78 (+0.36%)

DalalBaazaar Score

74 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

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

In simple words: Strong business and financial position, but sales are shrinking. 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 Jaykay Enterprises Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Jaykay Enterprises Limited engages in additive manufacturing, prototyping, and 3D printing technology business in India. It operates through three segments: Defence and Aerospace, and Digital Manufacturing and Advance Systems, and Digital Services.

IndustrySpecialty Business Services

SectorIndustrials

Employees42

Annual revenue₹240 Cr

How does it make money?

Turns over ₹240 Cr a year. Of every ₹100 of sales, about ₹97 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 42 employees supports ₹5.71 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹5.71 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB 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 30.6% 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 ROE15.2%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +410% while net margin moved +543% 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+410%

Margin effect+543%

DalalBaazaar Score

74/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.66 — 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

Quality vs. Valuation

Company Quality

79/ 100

Good

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

Valuation

71/ 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

15.0x

1.0Y Median

229.3x

12 monthly readings · mean 155.4x · range 9.6x–267.4x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 93% below its 1.0y median of 229.3x. 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 83% below the peer median of 88.8x.

vs. its own history

Cheap

229.3x median over 12 months · -93%

vs. sector peers

Cheap

88.8x median of 3 peers · -83%

vs. generic bands

Fair

15x–35x

EV/EBITDA

68.9x

PEG

0.07

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 12.0% to 18.6% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 4.9% to 33.7%.
Return on capital is rising
ROCE has improved from 7.7% to 30.6%.
High return on capital employed
ROCE of 30.6% is the mark of a business that converts capital into profit efficiently.
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

4 items require attention · 2 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 5.61x — earnings must service borrowings before shareholders see anything.
🔴Inventory building faster than salesFinancial
Inventory up 3435% against revenue up 410% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 49% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 41% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 30.6% 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 12.0% to 18.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 93% 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 83% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Leverage amplifies any setback
Debt/Equity of 5.61x. 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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 54% a year✓ 72.2% CAGR
Latest reported year was -0.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 17%✓ 18.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹9 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 28%✓ 30.6%
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

4 good · 4 neutral · 3 weak

Market Cap

₹3,067 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.0x

Fair

Fairly valued against the generic band

P/B Ratio

4.42x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹14.49

Profitable

Profitable on a per-share basis

ROE

33.7%

Strong

Strong capital efficiency

ROCE

30.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

5.61x

High

High leverage

Revenue Growth (YoY)

-0.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-78.8%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹9 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

10.0%

Average

Average margins

Net Margin

77.7%

Good

Strong bottom-line conversion

Current Ratio

2.65

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.66

Defensive

Steadier than the market

52W Range Position

65%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

214.1 / 178.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

55.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹47 Cr	₹53 Cr	₹81 Cr	₹240 Cr	+72.2%
EBITDA	₹6 Cr	₹11 Cr	₹13 Cr	₹45 Cr	+99.6%
EBITDA Margin	12.0%	21.4%	15.8%	18.6%	—
PAT (Net Profit)	₹7 Cr	₹9 Cr	₹7 Cr	₹233 Cr	+220.2%
EPS	₹0.69	₹0.79	₹0.73	₹15.6	+183.4%
ROE	4.9%	4.8%	1.5%	33.7%	—
ROCE	7.7%	6.1%	2.4%	30.6%	—
Total Debt	₹26 Cr	₹63 Cr	₹37 Cr	₹39 Cr	+14.3%
Free Cash Flow	-₹35 Cr	-₹51 Cr	-₹49 Cr	₹9 Cr	—

🟢 Revenue has grown at 72.2% a year over 3 years.

🟢 EBITDA has grown at 99.6% a year over 3 years.

🟢 EBITDA Margin has risen from 12.0% to 18.6% over 3 years (+6.7 pts).

🟢 PAT (Net Profit) has grown at 220.2% a year over 3 years.

🟢 EPS has grown at 183.4% a year over 3 years.

🟢 ROE has risen from 4.9% to 33.7% over 3 years (+28.9 pts).

🟢 ROCE has risen from 7.7% to 30.6% over 3 years (+22.9 pts).

🔴 Total Debt has grown at 14.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹35 Cr to ₹9 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹834 Cr

Total Liabilities

₹137 Cr

Cash & Equivalents

₹29 Cr

Operating Cash Flow

₹43 Cr

Capex

-₹34 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

65.2%

Peer Comparison

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

Recent News

6 general

Jaykay Enterprises Ltd. - PP Share Price Live Today

CNBC TV18, 15 Oct

Jaykay Enterprises (JAYKAY.NS) Falls 5.05% to ₹218.71, Drifting Toward Key Support - SuperTrend

siam.in, 14 Oct

Jaykay Enterprises Rights Issue 2026 Date, Price, Allotment, Ratio

IPO Watch, 29 Aug

Jaykay Enterprises (BSE:500306) - Stock Analysis

Simply Wall Street, 18 May

Jaykay Enterprises Share Price: valuation after 52-week peak

Univest, 07 Oct

Jaykay Enterprises defers rights issue meeting pending approvals

scanx.trade, 08 Jul

Watch Items

Revenue growth is negative (-0.8%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

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

All 5 tripwires holding · see Key things to watch ↑