Jagan Lamps (530711)
Slow GrowerScore breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹96.83 |
| Market Cap | ₹70.69 Cr |
| P/E Ratio | 16.93 |
| ROCE | 12.04% |
| ROE | 8.38% |
| Dividend Yield | 0% |
| Profit Growth | -1.75% |
| Debt/Equity | — |
| Sales Growth | 10.06% |
| 52-Week Range | ₹38.3 — ₹96.83 |
| Sector | Auto Components |
| Book Value | ₹43.56 |
Strengths
- Sales grew 10.06%, showing respectable topline expansion.
- ROCE of 12.04% is meaningfully above the ROE of 8.38%, indicating decent operating-level capital productivity.
- Latest quarter remains profitable with ₹13 Cr sales and ₹1 Cr net profit.
- Book value of ₹43.56 gives a tangible asset base, and P/B of 2.22 is not extreme for a going concern.
Concerns
- Profit growth is negative at -1.75% despite 10.06% sales growth, suggesting margin compression.
- ROE of 8.38% is weak for a shareholder-focused compounder.
- Piotroski F-Score of 4/9 signals deteriorating financial health on multiple metrics.
- P/E of 16.93 with no dividend and PEG of 1.68 at the 52-week high leaves little margin of safety.
AI Analysis
As I look at Jagan Lamps, I see a small ₹71 Cr auto components company that has done well in one respect: sales have grown 10.06%. But my Graham-filter asks how much profit this growth delivers. The answer is worrying. Profit fell 1.75%, while the latest quarter shows ₹13 Cr in sales and only ₹1 Cr in net profit. That is a modest conversion of sales into profits. ROE is 8.38% and ROCE is 12.04%—acceptable, but not the kind of numbers that signal a durable competitive moat. With no dividend and promoter holding undisclosed, I get no assistance from management friendliness. Debt/Equity not provided means I cannot certify financial strength; the Piotroski F-Score of 4/9 reinforces my caution. Turning to valuation, at ₹96.83 the stock trades at 16.93 times earnings and 2.22 times book value. For a business unable to grow profits, that is not a discount. The PEG of 1.68, even if based on sales growth, suggests the price already reflects that growth and perhaps more. The stock sits at its 52-week high, up from ₹38.30, so Mr. Market is enthusiastic. I am not. This is a slow grower at best, and a mediocre capital compounder. I would need to see profit growth return, fatter margins, a better F-Score, and a lower entry price before this could enter my circle of competence. There is no margin of safety here yet.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer