5:1 stock split & Rs 939 crore order book: This multibagger engineering company reports a turnaround net profit; Scrip trades at high ROE & high ROCE
The shares of the company have an ROE of 23 per cent and an ROCE of 25 per cent.
On Friday, shares of Jash Engineering plunged 4.38 per cent to Rs 2,365 with an intraday high of Rs 2,446.95 per share and an intraday low of Rs 2,285 per share from its previous closing of Rs 2,473.25. The company also made a new 52-week high of Rs 1,540 per share. The stock gave multibagger returns of over 600 per cent in just 3 years.
Jash Engineering manufactures equipment for water, wastewater, desalination, stormwater, hydropower, power, steel, cement, paper, petrochemicals, chemicals, fertilizers, and other process plants. According to the financials, Jash Engineering has a market cap of Rs 2,959 crore. The company reported positive numbers in its Quarterly Results and annual results.
According to quarterly results, the net sales increased by 78.4 per cent to Rs 114.5 crore in Q1FY25 compared to Rs 64.22 crore in Q1FY24. The company reported a net profit of Rs 0.13 crore in Q1FY25 compared to a net loss of Rs 3.37 crore in Q1FY24, an increase of over 100 per cent YoY. In its annual results, the net sales increased by 28.3 per cent to Rs 515.67 crore and net profit increased by 29.4 per cent to Rs 66.9 crore in FY24 compared to FY23.
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The company's board has proposed a stock split, dividing each existing shares having a face value of Rs 10 share into 5 shares having a face value of Rs 2 each. The record date for the stock split will be announced later. Additionally, the board has approved plans to list the company's shares on the main board of the Bombay Stock Exchange, subject to necessary approvals. The company reported its highest monthly order bookings in July 2024, totalling Rs 107 crore, with Rs 38 crore from domestic projects and Rs 69 crore from international ones. As of July 2024, the company's total order book stands at Rs 939 crore.
The shares of the company have an ROE of 23 per cent and an ROCE of 25 per cent. The stock gave multibagger returns of 360 per cent in 3 years. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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