Jyoti Structures Limited

Industrials — Specialty Industrial Machinery · NSE

₹8.96+₹0.05 (+0.56%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

CAUTION

Risk

High

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

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Jyoti Structures Limited manufactures and sells transmission line towers, substation structures, tall antenna towers, and masts in India and internationally.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees194

Annual revenue₹741 Cr

How does it make money?

Turns over ₹741 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 194 employees supports ₹3.82 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin9.4%

Net margin7.6%

Revenue / employee₹3.82 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.

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

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

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

What is its competitive advantage?Little sign of one

Returns on capital of 2.3% 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.

ROCE2.3%

ROE11.8%

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 +225% while net margin moved -523% 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+225%

Margin effect-523%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.57 — 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

61/ 100

Average

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

Valuation

67/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

16.6x

2Y Median

38.0x

28 monthly readings · mean 41.1x · range 18.9x–92.0x

Sector Median

66.2x

median of 4 sector peers

🟢Current valuation is approximately 56% below its 2y median of 38.0x. 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 75% below the peer median of 66.2x.

vs. its own history

Cheap

38.0x median over 28 months · -56%

vs. sector peers

Cheap

66.2x median of 4 peers · -75%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

16.6x

P/B

2.25x

EV/EBITDA

43.7x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 1.2% to 9.4% over 3 years.
Return on equity is rising
ROE has improved from -16.1% to 11.8%.
Return on capital is rising
ROCE has improved from -0.2% to 2.3%.
Valuation below its historical average
At 16.6x the stock trades 56% below its own median of 38.0x.

🔴 What Needs Attention1

Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

4 items require attention · 3 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 4.39x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 4 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.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 60% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 1.2% to 9.4%. 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 56% 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 75% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 29.8x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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
3 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 36% a year✓ 48.2% CAGR
Latest reported year was 61.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 9.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 29.8x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹310 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 2.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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 · 5 neutral · 3 weak

Market Cap

₹1,070 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

16.6x

Fair

Fairly valued against the generic band

P/B Ratio

2.25x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.54

Profitable

Profitable on a per-share basis

ROE

11.8%

Moderate

Moderate capital efficiency

ROCE

2.3%

Weak

Low return on total capital employed

Debt/Equity

4.39x

High

High leverage

Revenue Growth (YoY)

61.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

74.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

-₹310 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹8.96

Operating Margin

7.1%

Average

Average margins

Net Margin

7.6%

Average

Average bottom-line conversion

Current Ratio

6.00

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.57

Defensive

Steadier than the market

52W Range Position

16%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

9.0 / 9.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹228 Cr	₹438 Cr	₹493 Cr	₹741 Cr	+48.2%
EBITDA	₹3 Cr	₹24 Cr	₹44 Cr	₹70 Cr	+195.6%
EBITDA Margin	1.2%	5.6%	8.9%	9.4%	—
PAT (Net Profit)	-₹4 Cr	₹29 Cr	₹36 Cr	₹56 Cr	—
EPS	₹-0.06	₹0.4	₹0.39	₹0.47	—
ROE	-16.1%	—	6.3%	11.8%	—
ROCE	-0.2%	1.0%	1.4%	2.3%	—
Total Debt	₹1,803 Cr	₹1,916 Cr	₹1,996 Cr	₹2,084 Cr	+4.9%
Free Cash Flow	-₹48 Cr	-₹29 Cr	-₹196 Cr	-₹310 Cr	—

🟢 Revenue has grown at 48.2% a year over 3 years.

🟢 EBITDA has grown at 195.6% a year over 3 years.

🟢 EBITDA Margin has risen from 1.2% to 9.4% over 3 years (+8.2 pts).

🟢 PAT (Net Profit) has turned positive, from -₹4 Cr to ₹56 Cr.

🟢 EPS has turned positive, from ₹-0.06 to ₹0.47.

🟢 ROE has risen from -16.1% to 11.8% over 3 years (+27.9 pts).

🟢 ROCE has risen from -0.2% to 2.3% over 3 years (+2.5 pts).

🔴 Total Debt has grown at 4.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,926 Cr

Total Liabilities

₹2,451 Cr

Total Debt

₹2,084 Cr

Cash & Equivalents

₹97 Cr

Operating Cash Flow

-₹269 Cr

Capex

-₹41 Cr

Shareholding (proxy)

Institutional Holding

0.7%

Insider Holding

8.5%

Corporate Actions

Ex-Dividend Date

11 Jul 2013

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 mixed5 general

Why Is Jyoti Structures Share Price Falling Key Reasons 2026

Univest, 12 JunPrice 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.

Jyoti Structures Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Compare with Jyoti Structure

Equitymaster, 15 Oct

Jyoti Structures' (NSE:JYOTISTRUC) Solid Profits Have Weak Fundamentals

Simply Wall Street, 30 Jul

Jyoti Structures appoints Deepak Salunke as CFO, Anil Jain as director

scanx.trade, 15 Oct

Jyoti Structure Standalone June 2026 Net Sales at Rs 251.46 crore, up 61.03% Y-o-Y

Moneycontrol.com, 10 Aug

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟡Financial HealthAdequate10.6/20

🟢GrowthStrong18.4/20

🟡ProfitabilityModerate9.6/15

🟢ValuationAttractive10.7/15

🔴RiskHigh3.7/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 36% a year48.2% CAGR
✓EBITDA margin holds above 7%9.4%
✗Debt / EBITDA falls below 3x29.8x
✗Free cash flow remains positive-₹310 Cr
✗ROCE stays above 8%2.3%