Jocil Limited

Basic Materials — Specialty Chemicals · NSE

₹146.73+₹1.75 (+1.21%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

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

In simple words: The business is earning a fairly low return on the money invested in it, 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 Jocil Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Jocil Limited manufactures and sells stearic acids, fatty acids, soap noodles, toilet soaps, glycerine, and industrial oxygen in India. It operates through Chemicals, Soap, and Power segments.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees731

Annual revenue₹1,044 Cr

How does it make money?

Turns over ₹1,044 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 731 employees supports ₹1.43 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.43 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, 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 5.2% 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 ROE22.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +14% while net margin moved -27% 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-27%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 3.9% is weak

Quality vs. Valuation

Company Quality

42/ 100

Weak

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

Valuation

82/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

15.8x

3Y Median

81.5x

40 monthly readings · mean 71.3x · range 15.0x–141.2x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 81% below its 3y median of 81.5x. 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 61% below the peer median of 40.4x.

vs. its own history

Cheap

81.5x median over 40 months · -81%

vs. sector peers

Cheap

40.4x median of 4 peers · -61%

vs. generic bands

Fair

15x–35x

EV/EBITDA

7.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

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

🔴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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.
🟡Receivables growing faster than salesFinancial
Receivables up 37% against revenue up 14% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 81% 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 61% 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?

Sales are being booked faster than collected
Receivables are up 37% 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.
Growth barely outpaces inflation
Revenue compounding at 4.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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

1EBITDA margin holds above 0%✓ 1.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✓ 4.3% CAGR
Latest reported year was -6.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4ROCE stays above 8%✗ 5.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 81.5x✓ 15.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

3 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ 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

₹130 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.8x

Fair

Fairly valued against the generic band

P/B Ratio

0.61x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹9.29

Profitable

Profitable on a per-share basis

ROE

3.9%

Weak

Weak capital efficiency

ROCE

5.2%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-6.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

-2.0%

Falling

Profits are shrinking

Dividend Yield

2.39%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

0.9%

Weak

Thin margins leave little room for error

Net Margin

0.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.09

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.64

Defensive

Steadier than the market

52W Range Position

66%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

146.2 / 148.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

47.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹919 Cr	₹753 Cr	₹865 Cr	₹1,044 Cr	+4.3%
EBITDA	₹20 Cr	₹9 Cr	₹7 Cr	₹17 Cr	-5.5%
EBITDA Margin	2.1%	1.1%	0.8%	1.6%	—
PAT (Net Profit)	₹10 Cr	₹2 Cr	₹1 Cr	₹8 Cr	-6.0%
EPS	₹11.25	₹1.94	₹1.15	₹9.35	-6.0%
ROE	4.8%	0.8%	0.5%	3.9%	—
ROCE	6.4%	1.2%	0.7%	5.2%	—
Total Debt	₹2 Cr	₹6 Cr	—	—	—
Free Cash Flow	₹37 Cr	₹14 Cr	₹2 Cr	-₹0 Cr	—

🟢 Revenue has grown at 4.3% a year over 3 years.

🔴 EBITDA has shrunk at 5.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 1.6% over 3 years.

🔴 PAT (Net Profit) has shrunk at 6.0% a year over 3 years.

🔴 EPS has shrunk at 6.0% a year over 3 years.

🟡 ROE has held roughly flat at 3.9% over 3 years.

🔴 ROCE has fallen from 6.4% to 5.2% over 3 years (-1.2 pts).

🔴 Free Cash Flow has turned negative, from ₹37 Cr to -₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹301 Cr

Total Liabilities

₹87 Cr

Cash & Equivalents

₹14 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹2 Cr

Corporate Actions

Dividend Rate

₹3.5

Ex-Dividend Date

04 Sept 2026

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

2 mixed4 general

Jocil Share Price Falls 9.15%: Valuation and Peer View

Univest, 09 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Compare JOCIL with

Equitymaster, 09 Oct

Is Jocil the Best Stock in Its Sector? A Look at the Numbers

Univest, 30 Sept

Andhra Sugars reports standalone net profit to Rs 83.67 crore in 2025-26

ChiniMandi, 30 May

Jocil Share Price

Upstox, 21 Jan

Jocil Ltd Yearly results, Financial Summary

The Economic Times, 20 AprResults

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

Watch Items

Revenue growth is negative (-6.3%) 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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑