JSL Industries Limited

Industrials — Electrical Equipment & Parts · BSE

₹825.65₹0.00 (0.00%)

DalalBaazaar Score

43 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, a beta above 1.3, so it swings harder than the index.

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

What does this company do?

JSL Industries Limited engages in the manufacturing of engineering goods in India.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees47

Annual revenue₹56 Cr

How does it make money?

Turns over ₹56 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 47 employees supports ₹1.20 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.20 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, 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?Little sign of one

Returns on capital of 8.9% 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 ROE17.1%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +15% while net margin moved -17% 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+15%

Margin effect-17%

DalalBaazaar Score

43/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Beta of 1.32 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

43/ 100

Weak

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

Valuation

56/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

29.2x

3Y Median

28.1x

40 monthly readings · mean 29.5x · range 15.3x–74.7x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 3y median of 28.1x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 67% below the peer median of 88.8x.

vs. its own history

Fair

28.1x median over 40 months · +4%

vs. sector peers

Cheap

88.8x median of 3 peers · -67%

vs. generic bands

Fair

15x–35x

EV/EBITDA

16.7x

PEG

3.79

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 17% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 10.3% to 7.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 15.1% to 8.9% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 8.66x — earnings must service borrowings before shareholders see anything.
🟡Inventory building faster than salesFinancial
Inventory up 44% against revenue up 15% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 17% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 67% 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?

Leverage amplifies any setback
Debt/Equity of 8.66x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 4.9% 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.
Returns on shareholder capital are falling
ROE has dropped from 10.3% to 7.0%. 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.

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

1EBITDA margin holds above 8%✓ 10.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 4.9% CAGR
Latest reported year was 19.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹7 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 8.9%
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

3 good · 6 neutral · 2 weak

Market Cap

₹97 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

29.2x

Fair

Fairly valued against the generic band

P/B Ratio

2.22x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹28.3

Profitable

Profitable on a per-share basis

ROE

7.0%

Weak

Weak capital efficiency

ROCE

8.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

8.66x

High

High leverage

Revenue Growth (YoY)

19.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

7.7%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹7 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

1.5%

Weak

Thin margins leave little room for error

Net Margin

5.7%

Average

Average bottom-line conversion

Current Ratio

2.84

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.32

High swing

Swings more than the market in both directions

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

841.8 / 841.1

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

27.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹49 Cr	₹51 Cr	₹54 Cr	₹56 Cr	+4.9%
EBITDA	₹5 Cr	₹6 Cr	₹6 Cr	₹6 Cr	+3.0%
EBITDA Margin	11.1%	11.0%	11.0%	10.5%	—
PAT (Net Profit)	₹3 Cr	₹6 Cr	₹6 Cr	₹3 Cr	-1.5%
EPS	₹29.31	₹52.49	₹54.94	₹28.04	-1.5%
ROE	10.3%	15.6%	14.0%	7.0%	—
ROCE	15.1%	18.7%	15.1%	8.9%	—
Total Debt	₹3 Cr	₹3 Cr	₹3 Cr	₹2 Cr	-6.0%
Free Cash Flow	-₹1 Cr	-₹4 Cr	-₹1 Cr	₹7 Cr	—

🟢 Revenue has grown at 4.9% a year over 3 years.

🟢 EBITDA has grown at 3.0% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 10.5% over 3 years.

🟡 PAT (Net Profit) has been broadly flat over 3 years (-1.5% a year).

🟡 EPS has been broadly flat over 3 years (-1.5% a year).

🔴 ROE has fallen from 10.3% to 7.0% over 3 years (-3.3 pts).

🔴 ROCE has fallen from 15.1% to 8.9% over 3 years (-6.2 pts).

🟢 Total Debt has shrunk at 6.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹7 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹64 Cr

Total Liabilities

₹17 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹9 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

12.5%

Insider Holding

74.0%

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive1 mixed4 general

JSL Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

JSL Industries Ltd. Share Price Up 9.95%: Stock Analysis

Univest, 20 AugPrice 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.

JSL Overseas Holding Limited Increases Stake in Jindal Stainless to 17.04%

scanx.trade, 17 Oct

Compare with JSL Industries

Equitymaster, 08 Oct

JSL Industries Ltd. Peer Comparison – Compare with Others

Value Research, 27 Aug

JSL Industries Q1FY27 net profit up 7.5% to ₹42.81 lakh

scanx.trade, 13 AugResults

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingValuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑