Jain Resource (JAINREC)
CyclicalFairStock Score: 55/100 — STEADY
Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹293.4 |
| Market Cap | ₹10,124.82 Cr |
| P/E Ratio | 27.47 |
| ROCE | 27.2% |
| ROE | —% |
| Dividend Yield | 0% |
| Profit Growth | 14.1% |
| Debt/Equity | 0.82 |
| Sales Growth | 75.9% |
| Free Cash Flow | ₹-22 Cr |
| Promoter Holding | 73.59% |
| 52-Week Range | ₹247.57 — ₹593.95 |
| Sector | Diversified Metals |
| Book Value | ₹44.25 |
Strengths
- Revenue growth of 55.22% and profit growth of 204.10% show very strong recent momentum.
- PEG ratio of 0.31 suggests the earnings growth is not fully reflected in the current valuation.
- ROCE of 27.20% indicates efficient use of capital despite the company's debt.
- Piotroski F-Score of 7/9 points to solid operational and financial fundamentals.
- Promoter holding of 73.59% aligns management's interests with minority shareholders.
Concerns
- P/E of 40.02 and P/B of 9.77 are expensive, especially for a diversified metals company.
- Free cash flow is negative at ₹-22 Cr, meaning reported profits are not fully converting into cash.
- Debt-to-equity of 0.95 is high and could become problematic if the commodity cycle turns.
- Dividend yield is 0.00%, so investors receive no income while waiting for capital gains.
AI Analysis
As a value investor, I prefer owning wonderful businesses at fair prices; Jain Resource tests my discipline. The headline numbers are intoxicating: sales up 55.22%, profit up 204.10%, and a PEG of 0.31 suggests the market hasn't fully recognised the growth. But I have learned to be suspicious when a metal company reports extraordinary earnings. This is a cyclical business wearing a growth costume. At ₹409.85, I am being asked to pay 40.02 times trailing earnings and 9.77 times book value, while book value stands at just ₹41.96. That is not a margin of safety; that is a bet on continued perfection. ROCE at 27.20% is impressive, and a Piotroski F-Score of 7/9 points to healthy operations. Promoter holding of 73.59% is reassuring. Yet financial health is less convincing: debt-to-equity of 0.95 is not low, free cash flow is negative at ₹-22 Cr, and there is no dividend to compensate while waiting. The latest quarter's ₹2,676 Cr sales and ₹127 Cr net profit show momentum, but metal prices are beyond management's control. I cannot label this a stalwart; I see a cyclical upturn. The 52-week range of ₹247.57 to ₹593.95 tells me volatility is real. I would not buy here. If earnings normalise, today's P/E could quickly become far higher. Patience is better than paying a premium for what may prove to be peak-cycle profits.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer