5:1 Stock Split: Small-Cap Engineering Company Reports Stellar Results; Profit Surges by 78 Per cent, Revenue by 47 Per cent – Stock Gains Over 1,600 Per cent
The company’s shares have delivered an impressive multibagger return of over 1,600 per cent in the past 5 years.
Jash Engineering Ltd manufactures a diverse range of equipment for water intake systems, water and wastewater pumping stations and treatment plants, stormwater pumping stations, and water transmission lines, as well as for the power, steel, cement, paper and pulp, petrochemicals, chemical, fertilizer, and other processing industries. The company has announced a stellar quarterly performance.
Financial Performance
As per Quarterly Results, Jash Engineering Ltd. reported revenue of Rs 140 crore in September 2024 compared to Rs 95 crore in September 2024, representing a growth of around 47 per cent YoY. The company posted an operating profit of Rs 25 crore with a margin of around 18 per cent compared to Rs 14 crore with a margin of 15 per cent. The company’s net profit stood at Rs 16 crore for the period compared to a profit of Rs 9 crore in the same quarter last year.
Looking at the annual performance, the company generated a revenue of Rs 516 crore in FY24 compared to Rs 402 crore in FY23 representing a growth of 28 per cent YoY. The operating profit for FY24 was Rs 99 crore compared to Rs 64 crore in FY23. The company reported a net profit of Rs 67 crore compared to Rs 52 crore.
Business Update
In October 2024, the company received consolidated orders worth Rs 45 crore, with Rs 19 crore from the Indian market and Rs 26 crore from international markets. Key contributors to the October orders include Indian clients such as Girdhari Lal (Panchkula), Khiladi Infra (Mumbai), and Enviro Infra Engg. (Delhi), along with international clients including Analogue Technical (Hong Kong), Leonard WTP, Phase 2, TX (USA), and Greeley WTRF Upgrades, CO (USA).
As of November 1, 2024, Jash Engineering's total consolidated order book stands at Rs 873 crore, with Rs 322 crore from the Indian market and Rs 551 crore from international markets. Of the international orders, Rs 310 crore are from the USA, Rs 21 crore from Waterfront-UK (a company in which Jash Engineering holds an 80 per cent stake), and the remaining Rs 220 crore from other global markets.
Additionally, as of November 1, 2024, consolidated orders worth Rs 27 crore are under negotiation, with formal purchase orders expected soon. This includes Rs 15 crore for the Indian market and Rs 12 crore for international projects. Negotiated orders may take up to two months to convert into formal purchase orders, after which they are moved from the “negotiated orders” list to the confirmed monthly order intake and added to the company’s total outstanding consolidated order book.
Share Subdivision
In August 2024, the company's board approved a stock split of its equity shares. The company announced that each equity share with a face value of Rs 10 will be split into 5 shares, each with a face value of Rs 2.
Share Performance
Today, the shares of this Small-Cap company are trading at around Rs 487.20 per share on the NSE. The company’s current market capitalization stands at Rs 3048 crore. Additionally, the shares have delivered an impressive multibagger return of over 1,600 per cent in the past 5 years.
Business Overview
Jash Engineering Limited manufactures a wide range of equipment for water intake systems, water and wastewater pumping stations and treatment plants, storm water pumping stations, water transmission lines, as well as for industries including power, steel, cement, paper and pulp, petrochemicals, chemicals, fertilizers, and other process plants.
Disclaimer: The article is for informational purposes only and not investment advice.