One of the small-cap stocks engaged in manufacturing a wide range of equipment for water and wastewater management, including pumping stations, treatment plants, and desalination systems. The stock has delivered multi-bagger returns of 2,726 percent to the shareholders of the company in just 5 years.
Stock Performance
With a market capitalization of Rs. 3,547.31 crores, the shares of Jash Engineering Limited closed at Rs. 567 per equity share, down nearly around 2.11 percent from its previous day’s close price of Rs. 579.25.
On March 27, 2020, the shares of Jash Engineering Limited traded at Rs. 20.06, exhibiting a gain of around 2,726.52 percent compared to the current price of Rs. 567. For example, if someone had invested Rs. 1 lakh into the company’s stock 5 years ago, it would have turned to ~Rs. 28.27 lakhs.
Company Overview
Jash Engineering Limited specializes in manufacturing a diverse range of equipment for water and wastewater management, including pumping stations, treatment plants, and desalination systems. The company is actively engaged in global markets, exporting to over 45 countries and contributing to sustainable environmental solutions.
The company has a market share of around 65 to 70 percent in Water Control Gates and holds 5th position in the U.S. The company has an order book of Rs. 873 crore as of 1st November 2024.
Future Outlook
The company plans to grow its revenue from Rs. 522 crore in FY24 to Rs. 1,000 crore by FY28. It will establish two new manufacturing facilities by FY26, one in Chennai and another in Pithampur SEZ, boosting production capacity. Jash is also focusing on expanding in the Middle East and Southeast Asia, with strong prospects in Vietnam and future growth in Cambodia and Indonesia.
The company has partnered with Invent of Germany to offer secondary treatment equipment in India, expecting an additional Rs. 25-50 crore in revenue. Jash aims to benefit from Singapore’s sea-level protection projects starting in 2026-27 and is preparing to expand its US operations, with plans for a new plant to meet the Build America, Buy America (BABA) Act requirements by 2029.
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Strategic Initiatives
The company is developing two new manufacturing facilities in Chennai and Pithampur SEZ, aiming to increase revenue capacity to Rs. 1000 crore by FY28. It is also refocusing on the Middle East to boost growth.
Product Portfolio
The company’s major products include water control gates (59 percent), screening equipment (22 percent), valves (10 percent), and process equipment (9 percent). It recently partnered with Invent of Germany to introduce secondary treatment equipment like aerators and blowers in India.
Business Expansion
Jash Engineering Limited specializes in manufacturing equipment for water and wastewater management. With six manufacturing units across India, the US, and the UK, the company has a strong export focus. Celebrating over 50 years, it has expanded through collaborations and acquisitions, enhancing its global market presence.
Recent quarter results and ratios
Jash Engineering Limited’s revenue has increased from Rs. 95 crore in Q2 FY24 to Rs. 140 crore in Q2 FY25, which has grown by 47.37 percent YOY. The net profit of Jash Engineering Limited has also grown by 77.78 percent, from Rs. 9 crore in Q2 FY24 to Rs. 16 crore in Q2 FY25.
Jash Engineering Limited’s revenue and net profit have grown at a CAGR of 15.78 percent and 52.57 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 25.1 percent and 22.6 percent, respectively. The debt-to-equity ratio of the company is to be 0.29x, which shows the company is almost debt-free. Jash Engineering Limited’s EPS is to be Rs. 12.7.
Written By – Nikhil Naik
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