Jay Bharat Maru. (JAYBARMARU)

FairStock Score: 45/100 — MIXED

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

Key Financials

Strengths

• Promoter holding of 59.35% aligns management with minority shareholders
• Piotroski F-score of 7/9 suggests solid financial health on several metrics
• Modest P/E of 13.98 and low PEG of 0.06 if growth can be sustained
• Sales growth of 9.28% shows some underlying business traction
• Price near 52-week low with book value of ₹49.89 provides a partial asset floor

Concerns

• ROCE of only 7.87% indicates weak returns on capital and limited moat
• Debt/Equity of 1.02 means leverage is boosting ROE and adding risk
• Profit growth of 471.43% is likely a low-base effect; latest quarterly net margin is just 2.79%
• Price has fallen from ₹207 to ₹94.98, signalling possible cyclical stress or market doubt

AI Analysis

Looking at Jay Bharat Maru, I start with returns on capital. The company earns only 7.87% on capital employed, while the reported ROE of 14.62% is flattered by debt/equity of 1.02. I prefer businesses that generate high returns without heavy borrowing; here the underlying operating return is thin and the leverage is real. Auto components is a competitive, cyclical business, and I see no obvious durable moat in these numbers. Sales grew 9.28%, but profit jumped 471.43%. That kind of jump usually signals a low-base recovery, not sustainable compounding. Indeed, the latest quarter shows net profit of only ₹18 Cr on sales of ₹645 Cr, a net margin of just 2.79%. So earnings quality is weak at the margin. On valuation, a P/E of 13.98 looks cheap, but for a cyclical that is often the case when earnings are recovering. The price is ₹94.98, down sharply from the 52-week high of ₹207, though still above the low of ₹74.15. Book value is ₹49.89, so I would be paying 1.9 times net assets — hardly a deep Graham asset bargain. Positives exist: the Piotroski F-score of 7/9 is respectable, promoter holding is strong at 59.35%, and debt is not out of control. But the dividend yield is only 0.66%, and the FairStock Score of 53/100 mirrors my mixed feeling. This is a possible value candidate if the auto cycle turns, but I cannot call it a quality compounder. I would file it under Cyclical and demand a margin of safety before committing capital.

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