Jayant Agro Org. (JAYAGROGN)

FairStock Score: 36/100 — MIXED

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

Key Financials

Strengths

• Low leverage: Debt/Equity of 0.31 gives balance sheet cushion.
• Reasonable book valuation: P/B of 1.34 against book value ₹152.03 provides some asset support.
• High promoter holding of 67.13% aligns management interests with minority shareholders.
• ROE of 11.43% and ROCE of 12.59% show acceptable capital efficiency.
• Dividend yield of 1.42% offers modest income while waiting.

Concerns

• Profit growth down 51.09%; latest quarter net margin just ~1% on ₹587 Cr sales.
• Piotroski F-score of 4/9 suggests deteriorating financial health.
• Sales growth of only 1.30% indicates no pricing power or demand momentum.
• PEG of 9.21 and FairStock Score of 26 make the stock risky relative to stalled growth.

AI Analysis

At ₹203, Jayant Agro carries a market cap of ₹529 crore. The P/E looks cheap at 11.97, but a low P/E can be a trap when earnings are falling. Profit growth is down 51.09%, and the latest quarter earned just ₹6 crore on ₹587 crore of sales—a net margin of around 1%. This is not the kind of business quality I seek. Book value is ₹152, so at ₹203 I’m paying 1.34 times book; that’s fair only if returns on equity and capital remain healthy. ROE is 11.43% and ROCE is 12.59%, decent but not commanding. A moat needs pricing power; sales growth of 1.30% shows little of that. The balance sheet is conservative, with debt/equity of 0.31, and a 1.42% dividend yield gives some shareholder return. Promoter holding at 67.13% is high, which can be positive, but I must watch capital allocation carefully. The Piotroski F-score of 4/9 is a red flag: financial health is deteriorating. The PEG ratio of 9.21 tells me the market is paying a heavy price for any future growth. This looks like a cyclical or commodity-linked business, not a compounder. Graham would say the margin of safety is inadequate when profits are volatile and margins are thin. The 52-week range, ₹147 to ₹260, reinforces the cyclical nature. I prefer predictable earnings; this is not that. I will not buy merely because the P/E is low. If management can restore margins, grow sales meaningfully, and keep debt low, the story improves. Until then, I’m content to sit on the sidelines and wait for either a cheaper price or clear evidence of a durable turnaround.

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