Jaysynth Orgo (524592)

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

Key Financials

Strengths

• Positive sales growth of 6.02% and latest quarter sales of ₹65 Cr show the top line is holding up.
• ROCE of 13.98% is above ROE of 11.33%, indicating reasonable operational capital deployment.
• Trailing P/E of 13.20 and P/B of 2.05 are not extreme if earnings can stabilize.
• The stock's 52-week range of ₹9.66-₹21.52 shows it has already attracted market interest from lower levels.

Concerns

• Profit growth fell sharply by -58.68%, and latest quarterly net profit of ₹2 Cr on ₹65 Cr sales implies a very thin ~3% net margin.
• Piotroski F-Score of 4/9 signals weak fundamental health and possible financial stress.
• Debt/Equity and promoter holding are N/A, leaving critical leverage and governance questions unanswered.
• Dividend yield of 0.40% is negligible, and PEG of 2.19 is unattractive given collapsing profits.

AI Analysis

At first glance, ₹18.09 with earnings giving a trailing P/E of 13.20 looks modest. But I did not become wealthy buying mediocre businesses simply because they appeared cheap. Jaysynth Orgo is a specialty chemicals player with a small ₹249 Cr market cap, a 6.02% sales growth, and ROCE of 13.98%. Yet the profit picture is ugly—profit growth is down 58.68%, and the latest quarter's ₹65 Cr sales produced only ₹2 Cr of net profit, a roughly 3% net margin. That is not the hallmark of pricing power or a durable moat; it is a sign of a business under pressure, possibly cyclical or facing structural headwinds. The balance-sheet advantage I usually want cannot be verified: debt/equity is not available, and promoter holding is also N/A. Benjamin Graham would insist on that information before committing a rupee. The Piotroski F-Score of 4/9 reinforces the fragility. Meanwhile, ROE of 11.33% and P/B of 2.05 mean I am paying over two times book for a moderate return on equity. The dividend yield of 0.40% is negligible, so I am not being paid to wait. Could this be a turnaround? Maybe, but the evidence is not there yet. Sales growth of 6.02% is positive, and the 52-week range of ₹9.66-₹21.52 shows the market has already re-rated the stock substantially. At ₹18.09, a lot of good news is discounted. The PEG of 2.19, using sales growth, is not attractive; using profit decline, it is meaningless. I prefer simple, predictable, high-return businesses. This one demands proof of margin recovery, better disclosure, and a clear reason for the earnings collapse. Until then, this is not a Buffett-style compounder; it is a watchlist candidate at best.

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