Jonjua Overseas Limited

Industrials — Specialty Business Services · BSE

₹2.92−₹0.09 (−2.99%)

DalalBaazaar Score

75 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by short-term liabilities exceed short-term assets, 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, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Jonjua Overseas Limited engages in the service exports, corporate consultancy, and agriculture businesses.

IndustrySpecialty Business Services

SectorIndustrials

Employees3

Annual revenue₹21 Cr

How does it make money?

Turns over ₹21 Cr a year. Of every ₹100 of sales, about ₹39 reaches shareholders as profit, with ₹57 left at the operating level before interest, tax and depreciation. Each of its 3 employees supports ₹7.07 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin57.4%

Net margin38.8%

Revenue / employee₹7.07 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.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Some evidence

ROCE of 19.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE19.3%

ROE15.9%

Peer median ROE15.2%

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 +488% while net margin moved +19% 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+488%

Margin effect+19%

DalalBaazaar Score

75/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.03 — 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

77/ 100

Good

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

Valuation

87/ 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

1.3x

3Y Median

5.3x

40 monthly readings · mean 4.1x · range 1.0x–6.9x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 76% below its 3y median of 5.3x. 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 99% below the peer median of 88.8x.

vs. its own history

Cheap

5.3x median over 40 months · -76%

vs. sector peers

Cheap

88.8x median of 3 peers · -99%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

1.3x

P/B

0.20x

EV/EBITDA

3.0x

PEG

0.01

Dividend Yield

2.40%

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 31.7% to 57.4% over 3 years.
Return on equity is rising
ROE has improved from 9.1% to 15.9%.
Return on capital is rising
ROCE has improved from 10.1% to 19.3%.
Valuation below its historical average
At 1.3x the stock trades 76% below its own median of 5.3x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Debt is rising
Total debt is up 189765% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 711% against revenue growth of 488% — customers are taking longer to pay.
Short-term liquidity is tight
Current ratio of 0.59 — near-term obligations exceed near-term assets.

Red Flags

5 items require attention · 2 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 189765% over 3 years, from ₹0 Cr to ₹28 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 711% against revenue up 488% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 162% over 3 years — each existing share owns a smaller slice of the company.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.59 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.3% 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 31.7% to 57.4%. 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 76% 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 99% 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 711% against revenue up 488%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 60% a year✓ 80.5% CAGR
Latest reported year was 163.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 55%✓ 57.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 16%✓ 19.3%
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

9 good · 1 neutral · 1 weak

Market Cap

₹10 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

1.3x

Cheap

Cheap against the generic band

P/B Ratio

0.20x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.29

Profitable

Profitable on a per-share basis

ROE

15.9%

Strong

Strong capital efficiency

ROCE

19.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.54x

Low

Conservative leverage

Revenue Growth (YoY)

163.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

121.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.40%

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

CMP

₹2.92

Operating Margin

24.9%

Good

Healthy core-business profitability

Net Margin

36.6%

Good

Strong bottom-line conversion

Current Ratio

0.59

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.03

Defensive

Steadier than the market

52W Range Position

22%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

3.0 / 3.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

35.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4 Cr	₹4 Cr	₹5 Cr	₹21 Cr	+80.5%
EBITDA	₹1 Cr	₹2 Cr	₹4 Cr	₹12 Cr	+120.1%
EBITDA Margin	31.7%	49.4%	80.8%	57.4%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹2 Cr	₹8 Cr	+91.3%
EPS	₹1.13	₹1.16	₹2.06	₹2.96	+37.9%
ROE	9.1%	12.1%	8.4%	15.9%	—
ROCE	10.1%	15.6%	11.6%	19.3%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹28 Cr	+1138.3%
Free Cash Flow	₹0 Cr	-₹0 Cr	₹1 Cr	-₹1 Cr	—

🟢 Revenue has grown at 80.5% a year over 3 years.

🟢 EBITDA has grown at 120.1% a year over 3 years.

🟢 EBITDA Margin has risen from 31.7% to 57.4% over 3 years (+25.7 pts).

🟢 PAT (Net Profit) has grown at 91.3% a year over 3 years.

🟢 EPS has grown at 37.9% a year over 3 years.

🟢 ROE has risen from 9.1% to 15.9% over 3 years (+6.7 pts).

🟢 ROCE has risen from 10.1% to 19.3% over 3 years (+9.2 pts).

🔴 Total Debt has grown at 1138.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹84 Cr

Total Liabilities

₹32 Cr

Total Debt

₹28 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹34 Cr

Capex

-₹35 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

41.5%

Corporate Actions

Dividend Rate

₹0.07

Ex-Dividend Date

19 Sept 2025

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

1 mixed5 general

Jonjua Overseas fixes Sept 4 record date for 79.5 lakh bonus shares

scanx.trade, 04 Sept

Compare with

Equitymaster, 17 Oct

Jonjua Overseas Share Price Rises 4.64 Percent as Stock Trades Ex-Bonus Today

Univest, 04 SeptPrice 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.

Jonjua Overseas Board Meeting: Bonus Share Issue Under Review

HDFC Sky, 18 Dec

Penny stock under ₹10: Record date for 7:24 bonus shares fast approaching. Do you own?

Livemint, 01 Sept

7:24 bonus share by small cap - Record date soon | Check expected trading date

TradingView, 03 Sept

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong17.1/20

🟡Financial HealthAdequate9.5/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong12.6/15

🟢ValuationAttractive12.8/15

🔴RiskHigh4/10

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.

This thesis breaks if

✓Revenue growth stays above 60% a year80.5% CAGR
✓EBITDA margin holds above 55%57.4%
✗Debt / EBITDA stays below 2x2.3x
✗Free cash flow remains positive-₹1 Cr
✓ROCE stays above 16%19.3%