Jai Corp (JAICORPLTD)

FairStock Score: 20/100 — RISKY

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

Key Financials

Strengths

• Zero debt with D/E of 0.00, giving strong financial stability
• High promoter holding of 73.92% aligns management with minority shareholders
• Apparent low valuation with P/E of 11.21 and P/B of 1.58 against book value of ₹73.77
• Reported ROE of 19.29% and 48.96% profit growth, supported by a Piotroski F-Score of 6/9

Concerns

• ROCE of just 4.18% suggests weak core operating returns, while the 19.29% ROE may be inflated by non-operating items
• Sales declined by 7.88%, showing weak topline momentum
• Dividend yield is only 0.45%, offering little income support to investors
• FairStock Score of 39/100 and a wide 52-week range of ₹88.00-₹178.24 indicate volatility and mixed fundamental quality

AI Analysis

Jai Corp presents an interesting but contradictory picture. At ₹116.52, the market cap is ₹1,941 Cr, with a P/E of 11.21 and a P/B of 1.58 against a book value of ₹73.77. On surface, this looks reasonably priced. But Graham taught me to look behind the numbers. The core business, industrial plastic products, earned only a 4.18% ROCE. That is very weak. So how can ROE be 19.29%? When ROE is far above ROCE with zero debt, I suspect non-operating income or one-off gains are doing the heavy lifting. Sales are down 7.88%, yet profits are up 48.96%. That divergence is a red flag, not a reason to get excited. The latest quarter shows sales of ₹116 Cr and net profit of ₹17 Cr, but one quarter does not prove a turnaround. The balance sheet is genuinely good: no debt and promoter holding of 73.92% does align interests. Piotroski F-Score of 6/9 is okay, and the PEG of 0.23 looks cheap only if that profit growth is sustainable. But sales are shrinking, dividend yield is just 0.45%, and the stock sits well below its 52-week high of ₹178.24. A FairStock Score of 39/100 tells me this is not a high-quality compounder. I would not treat this as a wonderful business at a fair price. It is a low-ROCE, no-debt business with possible cyclical or asset characteristics. I need proof that core operating returns are genuinely improving before Paying ₹116.52. Price alone does not create margin of safety; understandability and earning power do.

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