Josts Engg. Co. (505750)
CyclicalFairStock Score: 48/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹914.55 |
| Market Cap | ₹912.6 Cr |
| P/E Ratio | 34.09 |
| ROCE | 30.41% |
| ROE | 10.54% |
| Dividend Yield | 0.51% |
| Profit Growth | -39.66% |
| Debt/Equity | — |
| Sales Growth | 50.28% |
| 52-Week Range | ₹188.1 — ₹914.55 |
| Sector | Industrial Manufacturing |
| Book Value | ₹60.57 |
Strengths
- ROCE of 30.41% indicates strong operating capital efficiency.
- Sales growth of 50.28% shows solid top-line momentum.
- Latest quarter sales of ₹78 Cr demonstrates continued business activity.
- Positive net profit, albeit thin, means the company is not in a loss-making state.
Concerns
- Profit growth declined 39.66%, while the latest quarter net profit is only ₹1 Cr on ₹78 Cr sales, implying very weak margins.
- P/E of 34.09 and P/B of 15.10 leave no room for error at current price.
- Piotroski F-Score of 4/9 suggests weak financial health.
- Stock is at the top of its 52-week range, having surged from ₹188.10 to ₹914.55, making the risk-reward unattractive.
AI Analysis
At first glance, Josts Engineering looks like the sort of business that would make me pause. A 50.28% jump in sales is exciting, but I don't buy growth; I buy earnings. Profit fell 39.66%, and the latest quarter earned just ₹1 Cr on ₹78 Cr of sales. That is a thin, fragile margin. The 15.10 price-to-book and 34.09 price-to-earnings multiples demand perfection, while return on equity is only 10.54%. A high ROCE of 30.41% suggests the operating business has some capital efficiency, but the gap between ROCE and ROE, along with a Piotroski score of 4/9, tells me the financial health is not as strong as the revenue line implies. The 0.68 PEG ratio is a trap: with earnings declining, using a P/E and growth number that no longer applies gives false comfort. The stock went from ₹188.10 to ₹914.55 in the 52-week range; Mr. Market has already priced in a great future. As Graham said, price is what you pay, value is what you get. At ₹914.55 with book value of just ₹60.57, I would be paying ₹15 for every ₹1 of net assets to earn a 10.54% ROE. The dividend yield of 0.51% offers little protection. This may be a cyclical upturn in industrial products, but the reported numbers do not yet show the profitability needed to justify this valuation. I would rather watch from the sidelines until earnings catch up with the price. Any stumble in margins could cause a painful re-rating. I need margin of safety, and I do not see one here.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer