Jagatjit Inds. (507155)

FairStock Score: 24/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Latest quarter net profit ₹64 Cr shows some form of income generation, possibly asset monetization or exceptional gains
• Piotroski F-Score of 6/9 indicates moderate financial health on balance sheet metrics
• Reported ROE of 31.22% suggests high accounting profitability, if it were sustainable
• 52-week range of ₹116–₹241.95 shows liquidity and investor interest

Concerns

• Sales growth is -80.65%, indicating a severe collapse in core business activity
• ROCE of 1.35% versus ROE of 31.22% highlights that operating returns are negligible, with profits likely non-operational
• P/E of 36.06 and P/B of 13.80 with zero dividend yield imply a rich valuation for a shrinking business
• Net profit ₹64 Cr exceeds sales ₹23 Cr in the latest quarter, strongly suggesting one-off or unsustainable income

AI Analysis

When I look at Jagatjit Inds, I see a classic case where the headline numbers mask a difficult reality. Yes, the latest quarter shows a net profit of ₹64 Cr on sales of just ₹23 Cr, which is more profit than revenue—that's a red flag that this earnings power is not coming from the core brewing and distilling business. Sales are down 80.65%, a stunning collapse for any operating company. A 36.06 P/E and 13.80 P/B on a book value of just ₹14.34 tells me the market is paying a hefty price for a business that is materially shrinking. The return on capital employed is a paltry 1.35%, meaning the actual operations are destroying rather than creating value. The high 31.22% ROE is likely an illusion created by non-operating income or financial leverage, not sustainable competitive advantage. There is no moat here, no pricing power, no dividend. Graham would say to be most fearful when the numbers look too good. The 1000% profit growth and 0.04 PEG are statistical artifacts of a low base and one-off gains, not healthy compounding. This is a business in distress, and the FairStock score of 24/100 confirms it's risky. I would not chase this stock as a value investor; the safety of principal comes first, and here the safety margin is absent.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer