Rs 808 Crore Order Book: Multibagger Engineering Stock In Focus On Major Updates; Scrip Trades at High ROE & High ROCE

The stock gave multibagger returns of 340 per cent in 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 over Rs 3,700 crore.

For the financial year 2024-25, the company achieved a consolidated, unaudited revenue of approximately Rs 735 crore, an increase from the previously informed Rs 710 crore as of April 1, 2025. This revenue of Rs 735 crore represents a growth of over 40 per cent compared to the consolidated audited revenue of Rs 516 crore in FY23-24. Notably, this figure excludes orders worth approximately Rs 35 crore dispatched and invoiced in March but not recognized as revenue for FY24-25 due to the delivery cut-off date of March 31, 2025. This Rs 35 crore revenue will be accounted for in the first quarter revenue of FY 25-26.

Looking ahead to FY 25-26, the company projects a consolidated sales revenue target of Rs 860 crore, indicating an approximate 17 per cent growth over the FY 24-25 revenue. This projection considers potential headwinds arising from the tariff war initiated by the USA on several countries, including India, which could lead to a slowdown in global project execution. Regarding the implications of new US tariffs, for FY 24-25, the unaudited revenue of the US subsidiary, Rodney Hunt Inc., is approximately USD 34 million, equivalent to around Rs 292 crore of the approximate Rs 90 crore in supplies and services from Jash Engineering Ltd., India to Rodney Hunt, USA, an estimated Rs 30-40 crore worth of supplies might be subject to the new tariffs. This could result in an implication of Rs 8-10 crore, representing the 25 per cent new tariff on the affected amount.

In response to the Build America Buy America Act (BABA Act) of November 2021, Rodney Hunt already possesses a manufacturing facility in Orange, Massachusetts, utilizing approximately 90,000 square feet out of over 400,000 square feet. To meet the Act's requirement of increasing the US component cost to 75 per cent by 2029 (currently at over 55 per cent), the company plans to expand the manufacturing area in Orange by an additional approximately 60,000 sq feet in 2025 and establish a new plant in Houston by 2027. In terms of monthly order intake, March 2025 saw consolidated orders worth Rs 35 crore, with Rs 2 crore from India and Rs 23 crore from international projects.

As of April 1, 2025, the company's total consolidated order book position stands at Rs 808 crore, with Rs 276 crore for projects in India and Rs 532 crore for projects outside India. Within the international order book, Rs 318 crore is attributed to the USA market, Rs 12 crore to Waterfront-UK, and the remaining Rs 202 crore to the rest of the world. The company remains optimistic about the Indian government's efforts to mitigate the tariff impact and is proactively enhancing its US manufacturing capabilities to meet regulatory requirements and cater to the growing US business.

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 340 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.