Jost's Engineering Company Limited

Industrials — Specialty Industrial Machinery · BSE

₹215.95−₹2.60 (−1.19%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, but sales are shrinking. Debt is 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 Jost's Engineering Company Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Jost's Engineering Company Limited manufactures and sells material handling equipment and engineered products in India.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees106

Annual revenue₹241 Cr

How does it make money?

Turns over ₹241 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 106 employees supports ₹2.27 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.27 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 26.6%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 20.2% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE17.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +44% while net margin moved +212% 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+44%

Margin effect+212%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.47 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ 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

66/ 100

Good

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

Valuation

78/ 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

6.4x

3Y Median

83.0x

40 monthly readings · mean 75.1x · range 7.6x–258.0x

Sector Median

66.2x

median of 4 sector peers

🟢Current valuation is approximately 92% below its 3y median of 83.0x. 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 90% below the peer median of 66.2x.

vs. its own history

Cheap

83.0x median over 40 months · -92%

vs. sector peers

Cheap

66.2x median of 4 peers · -90%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

17.8x

PEG

0.10

What's Good / What's Bad

🟢 What's Going Well2

High return on capital employed
ROCE of 26.6% is the mark of a business that converts capital into profit efficiently.
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

6 items require attention · 3 high · 3 watch

🔴High leverageFinancial
Debt/Equity of 5.26x — earnings must service borrowings before shareholders see anything.
🔴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.
🔴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.
🟡Margins are compressingFinancial
EBITDA margin is down 3.7 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 91% against revenue up 44% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 20% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.6% 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.
Priced below its own history
The stock trades 92% 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 90% 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 9.8% to 6.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 5.26x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 91% against revenue up 44%. 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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 10% a year✓ 12.9% CAGR
Latest reported year was -6.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 6.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹13 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 24%✓ 26.6%
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 · 3 neutral · 3 weak

Market Cap

₹255 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.4x

Cheap

Cheap against the generic band

P/B Ratio

1.52x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹33.65

Profitable

Profitable on a per-share basis

ROE

20.2%

Strong

Strong capital efficiency

ROCE

26.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

5.26x

High

High leverage

Revenue Growth (YoY)

-6.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

534.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.58%

Modest

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

Free Cash Flow

-₹13 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

5.4%

Average

Average margins

Net Margin

13.7%

Good

Strong bottom-line conversion

Current Ratio

3.72

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.47

Defensive

Steadier than the market

52W Range Position

17%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

219.6 / 223.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

45.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹167 Cr	₹181 Cr	₹234 Cr	₹241 Cr	+12.9%
EBITDA	₹16 Cr	₹18 Cr	₹23 Cr	₹15 Cr	-3.5%
EBITDA Margin	9.8%	10.2%	10.0%	6.1%	—
PAT (Net Profit)	₹7 Cr	₹10 Cr	₹18 Cr	₹32 Cr	+65.0%
EPS	₹7.58	₹4.77	₹16.16	₹28.28	+55.1%
ROE	18.5%	17.1%	22.4%	20.2%	—
ROCE	26.3%	23.9%	22.6%	26.6%	—
Total Debt	₹7 Cr	₹17 Cr	₹23 Cr	₹8 Cr	+7.2%
Free Cash Flow	₹9 Cr	-₹11 Cr	-₹8 Cr	-₹13 Cr	—

🟢 Revenue has grown at 12.9% a year over 3 years.

🔴 EBITDA has shrunk at 3.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 9.8% to 6.1% over 3 years (-3.7 pts).

🟢 PAT (Net Profit) has grown at 65.0% a year over 3 years.

🟢 EPS has grown at 55.1% a year over 3 years.

🟢 ROE has risen from 18.5% to 20.2% over 3 years (+1.7 pts).

🟡 ROCE has held roughly flat at 26.6% over 3 years.

🔴 Total Debt has grown at 7.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹9 Cr to -₹13 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹213 Cr

Total Liabilities

₹56 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹10 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

59.0%

Corporate Actions

Dividend Rate

₹1.25

Ex-Dividend Date

11 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 positive3 mixed2 general

Half Yearly Results, Half yearly Earnings for Josts Engineering

The Economic Times, 14 OctResults

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

JostS Engineering Company Share Price Rises 8.59% 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.

JostS Engineering Company Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Jost's Engineering Announces Q3FY26 Results and ₹73 Crore Subsidiary Sale Deal

scanx.trade, 05 FebResults

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

Josts Engineering recommends ₹5 per share dividend ahead of AGM

scanx.trade, 20 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

UHTL Stock Price and Chart — NSE:UHTL

TradingView, 11 Jun

Watch Items

Revenue growth is negative (-6.6%) 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.

DalalBaazaar Thesis

StrongGrowth · Profitability · Valuation

MiddlingBusiness Quality · Financial Health

WeakRisk

Points for each in the Score ↑

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. 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 ↑