Jyoti Resins and Adhesives Limited

Basic Materials — Specialty Chemicals · NSE

₹850.00+₹4.55 (+0.54%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. The direction of profits is 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 Jyoti Resins and Adhesives Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Jyoti Resins and Adhesives Limited manufactures and sells synthetic wood adhesives and related products under the EURO7000 brand in India. The company offers EURO Ultra 5in1, Extreme 3 Hi Strong, EURO WP 2in1, PVC glue, and Euro Extra.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees686

Annual revenue₹315 Cr

How does it make money?

Turns over ₹315 Cr a year. Of every ₹100 of sales, about ₹22 reaches shareholders as profit, with ₹31 left at the operating level before interest, tax and depreciation. Each of its 686 employees supports ₹45.9 lakh of revenue a year, the signature of a people-led business.

EBITDA margin30.9%

Net margin22.2%

Revenue / employee₹45.9 lakh

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.

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

PIDILITE INDUSTRIES LTDP/E 57.8x · ROE 24.4%

SRF LTDP/E 33.8x · ROE 15.4%

UPL LIMITEDP/E 21.5x · ROE 6.1%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 31.9%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 24.2% against a peer median of 22.3% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE31.9%

ROE24.2%

Peer median ROE22.3%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 16.7% and earnings to grow about 31.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+16.7%

Est. earnings growth+31.2%

Analysts1

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +20% while net margin moved +25% 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+20%

Margin effect+25%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 6.4% — barely ahead of inflation
• Profit CAGR of 14.6%
✗ Profit fell 28.6% in the latest year

Quality vs. Valuation

Company Quality

72/ 100

Good

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

Valuation

69/ 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

15.7x

Sector Median

40.4x

median of 4 sector peers

🟢Against its sector it trades 61% below the peer median of 40.4x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

40.4x median of 4 peers · -61%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

15.7x

P/B

3.48x

EV/EBITDA

10.1x

PEG

1.07

Dividend Yield

1.06%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 24.1% to 30.9% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 31.9% 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 Attention4

Return on equity is falling
ROE has dropped from 43.8% to 24.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 57.6% to 31.9% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 74% against revenue growth of 20% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 70% against revenue growth of 20% — stock may not be moving.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 74% against revenue up 20% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 70% against revenue up 20% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 31.9% 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 24.1% to 30.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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 74% against revenue up 20%. 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 6.4% 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 43.8% to 24.2%. 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 29%✓ 30.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 6.4% CAGR
Latest reported year was 16.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹44 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 29%✓ 31.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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
✓ Analyst consensus isn't majority-sell

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹1,021 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.7x

Fair

Fairly valued against the generic band

P/B Ratio

3.48x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹54

Profitable

Profitable on a per-share basis

ROE

24.2%

Strong

Strong capital efficiency

ROCE

31.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

16.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-28.6%

Falling

Profits are shrinking

Dividend Yield

1.06%

Modest

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

Free Cash Flow

₹44 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹850

P/E (Forward)

10.4x

Improving

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

Operating Margin

13.8%

Average

Average margins

Net Margin

19.7%

Good

Strong bottom-line conversion

Current Ratio

2.85

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.04

Defensive

Steadier than the market

52W Range Position

32%

Mid-range

Technical Snapshot

RSI (14)

57.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹261 Cr	₹257 Cr	₹284 Cr	₹315 Cr	+6.4%
EBITDA	₹63 Cr	₹91 Cr	₹101 Cr	₹97 Cr	+15.6%
EBITDA Margin	24.1%	35.3%	35.7%	30.9%	—
PAT (Net Profit)	₹46 Cr	₹67 Cr	₹74 Cr	₹70 Cr	+14.6%
EPS	₹38.7	₹55.93	₹62	₹58.32	+14.6%
ROE	43.8%	40.4%	32.2%	24.2%	—
ROCE	57.6%	53.5%	41.8%	31.9%	—
Free Cash Flow	-₹2 Cr	₹25 Cr	₹13 Cr	₹44 Cr	—

🟢 Revenue has grown at 6.4% a year over 3 years.

🟢 EBITDA has grown at 15.6% a year over 3 years.

🟢 EBITDA Margin has risen from 24.1% to 30.9% over 3 years (+6.8 pts).

🟢 PAT (Net Profit) has grown at 14.6% a year over 3 years.

🟢 EPS has grown at 14.6% a year over 3 years.

🔴 ROE has fallen from 43.8% to 24.2% over 3 years (-19.6 pts).

🔴 ROCE has fallen from 57.6% to 31.9% over 3 years (-25.7 pts).

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹44 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹426 Cr

Total Liabilities

₹137 Cr

Total Debt

—

Cash & Equivalents

₹39 Cr

Operating Cash Flow

₹48 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

63.4%

Corporate Actions

Dividend Rate

₹9

Ex-Dividend Date

09 Sept 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹1,226

+44.2% vs CMP

Target Range

₹1,226 – ₹1,226

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

1 mixed1 negative4 general

Compare with JYOTI RESINS

Equitymaster, 18 Oct

JYOTIRES Stock Price and Chart — NSE:JYOTIRES

TradingView, 17 Aug

Jyoti Resins & Adhesives shares to list on NSE from Oct 8, 2026

scanx.trade, 08 Oct

Jyoti Resins and Adhesives standalone net profit declines 32.39% in the June 2026 quarter

Business Standard, 11 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Jyoti Resins and Adhesives Q1 FY27 Results: Revenue Rs 87 Cr, PAT Rs 11 Cr and Key Highlights

Univest, 12 AugResults

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

Jyoti Resins & Adhesives Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Watch Items

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

🟢Business QualityStrong15.2/20

🟢Financial HealthStrong17.5/20

🟡GrowthModest10.4/20

🟢ProfitabilityStrong11/15

🟡ValuationFair9.3/15

🟡RiskModerate6.2/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 29%30.9%
✓Revenue growth stays above 5% a year6.4% CAGR
✓Free cash flow remains positive₹44 Cr
✓ROCE stays above 29%31.9%