Jasch Gauging Technologies Limited

Technology — Scientific & Technical Instruments · BSE

₹512.00−₹6.30 (−1.22%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Jasch Gauging Technologies Limited provides industrial gauging systems for flat products processing industry in India.

IndustryScientific & Technical Instruments

SectorTechnology

Employees95

Annual revenue₹57 Cr

How does it make money?

Turns over ₹57 Cr a year. Of every ₹100 of sales, about ₹26 reaches shareholders as profit, with ₹37 left at the operating level before interest, tax and depreciation. Each of its 95 employees supports ₹60.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹60.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. 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 19.8% 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 ROE32.0%

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 -14% while net margin moved +0% 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-14%

Margin effect+0%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 4.7% a year
✗ Profit has declined at 4.6% a year

Quality vs. Valuation

Company Quality

54/ 100

Average

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

Valuation

62/ 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

15.3x

3Y Median

16.6x

34 monthly readings · mean 16.8x · range 13.8x–21.9x

Sector Median

16.5x

median of 4 sector peers

🟡Currently trading close to its 3y median of 16.6x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 16.5x.

vs. its own history

Fair

16.6x median over 34 months · -8%

vs. sector peers

Fair

16.5x median of 4 peers · -7%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.6x

PEG

1.28

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.28x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 27.1% to 14.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 36.3% to 19.8% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 45% against revenue up -14% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 61% against revenue up -14% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 47% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.8% 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.
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 45% against revenue up -14%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 27.1% to 14.9%. 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.
Several serious flags at once
3 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

1EBITDA margin holds above 35%✓ 36.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 17%✓ 19.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 16.6x✓ 15.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

9 / 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

6 good · 4 neutral · 1 weak

Market Cap

₹232 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.3x

Fair

Fairly valued against the generic band

P/B Ratio

2.34x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹33.4

Profitable

Profitable on a per-share basis

ROE

14.9%

Moderate

Moderate capital efficiency

ROCE

19.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.28x

Low

Conservative leverage

Revenue Growth (YoY)

16.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

12.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

3.91%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

23.7%

Good

Healthy core-business profitability

Net Margin

25.2%

Good

Strong bottom-line conversion

Current Ratio

8.94

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.41

Defensive

Steadier than the market

52W Range Position

34%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

537.2 / 534.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

35.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹66 Cr	₹59 Cr	₹53 Cr	₹57 Cr	-4.7%
EBITDA	₹24 Cr	₹22 Cr	₹21 Cr	₹21 Cr	-4.1%
EBITDA Margin	35.9%	37.7%	40.7%	36.6%	—
PAT (Net Profit)	₹17 Cr	₹16 Cr	₹15 Cr	₹15 Cr	-4.6%
EPS	₹37.44	₹35.4	₹32.39	₹32.53	-4.6%
ROE	27.1%	20.7%	16.5%	14.9%	—
ROCE	36.3%	27.5%	22.3%	19.8%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+13.8%
Free Cash Flow	-₹42 Cr	-₹8 Cr	₹5 Cr	-₹1 Cr	—

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

🔴 EBITDA has shrunk at 4.1% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 36.6% over 3 years.

🔴 PAT (Net Profit) has shrunk at 4.6% a year over 3 years.

🔴 EPS has shrunk at 4.6% a year over 3 years.

🔴 ROE has fallen from 27.1% to 14.9% over 3 years (-12.3 pts).

🔴 ROCE has fallen from 36.3% to 19.8% over 3 years (-16.4 pts).

🔴 Total Debt has grown at 13.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹112 Cr

Total Liabilities

₹13 Cr

Cash & Equivalents

₹9 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

69.4%

Corporate Actions

Dividend Rate

₹20

Ex-Dividend Date

07 Aug 2026

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 positive1 mixed4 general

Jasch Gauging fixes July 24 as record date for AGM

scanx.trade, 17 Jul

Jasch Gauging Technologies Ltd Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 02 Sept

Compare with

Equitymaster, 26 Sept

Jasch Gauging Technologies Reports Q3 FY26 Results with Net Profit of ₹333.38 Lakh

scanx.trade, 29 JanResults

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

Satin Creditcare Network consolidated net profit rises 172.00% in the June 2026 quarter

Business Standard, 30 JulResults

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

DIGILOGIC Stock Price and Chart — BSE:DIGILOGIC

TradingView, 28 Jan

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation

MiddlingProfitability · Risk

WeakGrowth

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

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