Jaysynth Orgochem Limited

Basic Materials — Chemicals · BSE

₹14.60+₹0.24 (+1.67%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Jaysynth Orgochem Limited manufactures and sells chemicals in India and internationally. It operates through Colorants & Chemicals and Inkjet Printers segments.

IndustryChemicals

SectorBasic Materials

Employees215

Annual revenue₹258 Cr

How does it make money?

Turns over ₹258 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 215 employees supports ₹1.20 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.20 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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 12.7% 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 ROE15.4%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +35% while net margin moved +1309% 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+35%

Margin effect+1309%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.01 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ 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

61/ 100

Average

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

Valuation

84/ 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

10.7x

3Y Median

23.1x

40 monthly readings · mean 59.1x · range 8.3x–282.5x

Sector Median

33.8x

median of 3 sector peers

🟢Current valuation is approximately 54% below its 3y median of 23.1x. 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 68% below the peer median of 33.8x.

vs. its own history

Cheap

23.1x median over 40 months · -54%

vs. sector peers

Cheap

33.8x median of 3 peers · -68%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.7x

PEG

0.06

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 2.9% to 9.1% over 3 years.
Return on equity is rising
ROE has improved from 0.8% to 11.0%.
Return on capital is rising
ROCE has improved from 2.5% to 12.7%.
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

3 items require attention · 1 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 701% over 3 years, from ₹1 Cr to ₹8 Cr.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹14 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 918% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 2.9% to 9.1%. 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 54% 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 68% 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?

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 8% a year✓ 10.5% CAGR
Latest reported year was -1.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 9.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹14 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 12.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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 · 4 neutral · 2 weak

Market Cap

₹197 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.7x

Cheap

Cheap against the generic band

P/B Ratio

1.47x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.37

Profitable

Profitable on a per-share basis

ROE

11.0%

Moderate

Moderate capital efficiency

ROCE

12.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.31x

Low

Conservative leverage

Revenue Growth (YoY)

-1.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

215.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.34%

Modest

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

Free Cash Flow

-₹14 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

12.0%

Average

Average margins

Net Margin

7.1%

Average

Average bottom-line conversion

Current Ratio

4.17

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.01

Defensive

Steadier than the market

52W Range Position

40%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

15.7 / 15.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

28.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹191 Cr	₹210 Cr	₹226 Cr	₹258 Cr	+10.5%
EBITDA	₹6 Cr	₹19 Cr	₹26 Cr	₹23 Cr	+60.9%
EBITDA Margin	2.9%	9.3%	11.5%	9.1%	—
PAT (Net Profit)	₹1 Cr	₹12 Cr	₹16 Cr	₹15 Cr	+167.0%
EPS	₹0.06	₹0.91	₹1.16	₹1.09	+162.9%
ROE	0.8%	11.1%	12.7%	11.0%	—
ROCE	2.5%	10.8%	13.9%	12.7%	—
Total Debt	₹1 Cr	₹0 Cr	₹8 Cr	₹8 Cr	+100.1%
Free Cash Flow	₹14 Cr	₹4 Cr	₹4 Cr	-₹14 Cr	—

🟢 Revenue has grown at 10.5% a year over 3 years.

🟢 EBITDA has grown at 60.9% a year over 3 years.

🟢 EBITDA Margin has risen from 2.9% to 9.1% over 3 years (+6.1 pts).

🟢 PAT (Net Profit) has grown at 167.0% a year over 3 years.

🟢 EPS has grown at 162.9% a year over 3 years.

🟢 ROE has risen from 0.8% to 11.0% over 3 years (+10.1 pts).

🟢 ROCE has risen from 2.5% to 12.7% over 3 years (+10.2 pts).

🔴 Total Debt has grown at 100.1% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹14 Cr to -₹14 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹220 Cr

Total Liabilities

₹86 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹7 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.1%

Corporate Actions

Dividend Rate

₹0.05

Ex-Dividend Date

21 Sept 2026

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

1 positive1 mixed4 general

Jaysynth Orgochem (BSE:524592) - Stock Analysis

Simply Wall Street, 11 Oct

Jaysynth Orgochem Ltd. Lower Circuit Today: Price, Data and Peers

Univest, 01 Oct

Jaysynth Orgochem Q1 Results: Net Profit Jumps 188% YoY To ₹5.35 Cr

scanx.trade, 05 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Jaysynth Orgochem Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 23 Sept

Hemo Organic Ltd: Qmin Realities Acquires 24.76% Stake via Preferential Allotment

Whalesbook, 05 Oct

Jaysynth Orgochem Ltd. Share Price Rise: BSE Price Action

Univest, 21 AugPrice 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

Revenue growth is negative (-1.5%) 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.
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

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Profitability

WeakRisk

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.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑