Shares of Jyoti Resins & Adhesives Limited closed today at a price of Rs 1,400.85 and have a market capitalization of Rs 1,681 crores. The stock reached its all-time high level of Rs 1,818.45 in September 2022

The scrip has given multibagger returns of approximately 47,226 percent during a long-term period of 9 years ranging from Rs 2.96 in June 2014 to the current price levels. It means that if someone would have invested Rs 1 Lakh into the stock, it would have converted to around Rs 4.73 crores within a period of 9 years. 

Jyoti Resins & Adhesives Limited is involved in the business of production of Wood Adhesives which are been widely used in the fast-moving consumer markets. Some of the products included in the company’s portfolio are Euro WP, Euro 7000 Xtra, Euro Ultra, and others. 

Digging into the quarterly numbers reported by the company, the operating revenues observed a slight decrease from Rs 66.61 crores in the December 2022 quarter to Rs 65.08 crores in the quarter ending March 2023. On the contrary, the net profit numbers rose from Rs 12.15 crores to Rs 16.41 crores representing an increase of 35 percent. 

On a YoY basis, both the above-mentioned metrics have been successful in showing an upward movement with operating revenues increasing from Rs 182 crores during FY21-22 to Rs 261 crores in FY22-23 and net profits going up from Rs 20 crores to Rs 46 crores keeping the time horizon the same. 

In addition to the above, the company has seen slight improvements as far as the profitability ratios are concerned. The return on equity (ROE) rose from 43.21 percent during FY21-22 to 43.82 percent in FY22-23. Moreover, the return on capital employed (ROCE) moved from 41.94 percent to 57.58 percent. Since FY21-22, the company has been a debt-free entity with zero debt obligations. 

The latest shareholding data available for the March 2023 quarter represents that the promoters hold a 50.82 percent stake, and Foreign Institutional Investors (FIIs) hold a 0.33 percent stake in the company. 

Written by Amit Madnani


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