JNK India Limited

Industrials — Specialty Industrial Machinery · NSE

₹414.60−₹1.90 (−0.46%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a beta above 1.3, so it swings harder than the index.

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, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

JNK India Limited, a heating equipment company, engages in designing, engineering, manufacturing, fabricating, procurement, erection, supplying, installing, and commissioning of process-fired heaters, reformers, and cracking furnaces in India and internationally.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees381

Annual revenue₹818 Cr

How does it make money?

Turns over ₹818 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 381 employees supports ₹2.15 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.15 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS 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 15.8% 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 ROE17.1%

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 +101% while net margin moved -30% 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+101%

Margin effect-30%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Beta of 1.59 — amplifies market moves in both directions
✗ 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

60/ 100

Average

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

Valuation

63/ 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

30.6x

3Y Median

51.1x

32 monthly readings · mean 53.0x · range 25.8x–99.4x

Sector Median

66.2x

median of 4 sector peers

🟢Current valuation is approximately 40% below its 3y median of 51.1x. 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 54% below the peer median of 66.2x.

vs. its own history

Cheap

51.1x median over 32 months · -40%

vs. sector peers

Cheap

66.2x median of 4 peers · -54%

vs. generic bands

Fair

15x–35x

EV/EBITDA

23.5x

PEG

2.57

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.16x 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 37.9% to 11.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 42.5% to 15.8% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 106% over 3 years, from ₹44 Cr to ₹91 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 202% against revenue up 101% — sales are being booked faster than they are collected.
🟡Margins are compressingFinancial
EBITDA margin is down 4.3 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 40% 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 54% 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?

Margins are being competed away
EBITDA margin has fallen from 16.7% to 12.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 202% against revenue up 101%. 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 37.9% to 11.4%. 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.
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 20% a year✓ 26.2% CAGR
Latest reported year was 81.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 12.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹12 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 13%✓ 15.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

5 good · 5 neutral · 1 weak

Market Cap

₹2,320 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

30.6x

Fair

Fairly valued against the generic band

P/B Ratio

4.08x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹13.56

Profitable

Profitable on a per-share basis

ROE

11.4%

Moderate

Moderate capital efficiency

ROCE

15.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

81.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

925.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.07%

Modest

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

Free Cash Flow

-₹12 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

22.8x

Improving

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

Operating Margin

7.2%

Average

Average margins

Net Margin

8.4%

Average

Average bottom-line conversion

Current Ratio

2.04

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.59

High swing

Swings more than the market in both directions

52W Range Position

60%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

426.1 / 431.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

47.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹407 Cr	₹480 Cr	₹476 Cr	₹818 Cr	+26.2%
EBITDA	₹68 Cr	₹101 Cr	₹60 Cr	₹101 Cr	+14.2%
EBITDA Margin	16.7%	21.1%	12.6%	12.4%	—
PAT (Net Profit)	₹46 Cr	₹63 Cr	₹30 Cr	₹65 Cr	+11.9%
EPS	₹8.34	₹11.26	₹5.46	₹11.61	+11.7%
ROE	37.9%	32.1%	6.0%	11.4%	—
ROCE	42.5%	44.7%	10.3%	15.8%	—
Total Debt	₹44 Cr	₹66 Cr	₹19 Cr	₹91 Cr	+27.2%
Free Cash Flow	₹13 Cr	-₹21 Cr	-₹74 Cr	-₹12 Cr	—

🟢 Revenue has grown at 26.2% a year over 3 years.

🟢 EBITDA has grown at 14.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 16.7% to 12.4% over 3 years (-4.3 pts).

🟢 PAT (Net Profit) has grown at 11.9% a year over 3 years.

🟢 EPS has grown at 11.7% a year over 3 years.

🔴 ROE has fallen from 37.9% to 11.4% over 3 years (-26.5 pts).

🔴 ROCE has fallen from 42.5% to 15.8% over 3 years (-26.7 pts).

🔴 Total Debt has grown at 27.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹13 Cr to -₹12 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,062 Cr

Total Liabilities

₹494 Cr

Cash & Equivalents

₹32 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹9 Cr

Shareholding (proxy)

Institutional Holding

9.9%

Insider Holding

70.6%

Corporate Actions

Dividend Rate

₹0.3

Ex-Dividend Date

18 Sept 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive2 mixed3 general

Is Now The Time To Put JNK India (NSE:JNKINDIA) On Your Watchlist?

Simply Wall Street, 15 Aug

JNKINDIA Forecast — Price Target — Prediction for 2027

TradingView, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

JNK India shares jump 12% on large order win; stock up 94% in 2026 so far

Business Standard, 09 JunOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

JNK India Ltd Peer Comparison – Compare with Others

Value Research, 30 Aug

JNK India shares surge over 17% to 15-month high after securing international order

Livemint, 09 JunPrice 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.

JNK India Receives Two Significant Orders From Indian Customer Valued Under 1B Rupees Each

Sahi, 30 Sept

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth · Profitability · Valuation

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. 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 ↑