1. At a Glance
Jash Engineering Ltd manufactures water control gates, screening solutions, and industrial valves—and exports to 45+ countries. It’s a mid-cap capital goods player punching above its weight. The order book is fat (₹844 Cr), margins are decent, and the ROE is flowing like Ganga after monsoon.
2. Introduction with Hook
If valves, gates, and screens don’t sound sexy, think again. Jash is the kind of boring business that quietly sits under your nose while delivering a 5-year profit CAGR of 34% and an ROE north of 22%. It’s a compounder dressed as a plumber.
- Market Cap: ₹3,600 Cr
- Order Book: ₹844 Cr (as of July 2025)
- ROCE: 25% | OPM: ~17%
If this were a Bollywood script, Jash would be the silent engineer who becomes a billionaire while you were busy shorting IT stocks.
3. Business Model (WTF Do They Even Do?)
Jash Engineering = Full-stack infrastructure component kingpin. They design, cast, fabricate, assemble and test every single part in-house.
Product Categories:
- Water Control Equipment: Sluice gates, weir gates, butterfly valves—used in water infra projects.
- Screening Systems: Bar screens, rake screens for wastewater treatment.
- Valves for Solids: Used by steel, cement, power, and petrochem plants.
- Mixing & Aeration: Industrial-grade diffusers and agitators.
Clients? Water infra bodies, municipalities, power, steel, cement majors—both domestic and export.
Jash isn’t cyclical. It’s contract-driven, infra-aligned, and increasingly global.
4. Financials Overview
P&L Snapshot (₹ Cr):
| FY | Sales | Net Profit | OPM % | ROE % | EPS (₹) |
|---|---|---|---|---|---|
| FY21 | 299 | 31 | 17% | 21% | 5.14 |
| FY22 | 368 | 32 | 13% | 17% | 5.39 |
| FY23 | 402 | 52 | 16% | 23% | 8.59 |
| FY24 | 516 | 67 | 19% | 25% | 10.79 |
| FY25 | 735 | 87 | 17% | 22% | 13.97 |
Growth Story Highlights:
- Revenue CAGR (5Y): 21%
- Profit CAGR (5Y): 34%
- Margins stable, no profit gimmickry
- FY25 revenue jumped 43% YoY—rare in this space
5. Valuation
- CMP: ₹573
- EPS FY25: ₹13.97 → P/E = 41x
- Book Value: ₹69 → P/B = 8.3x
Fair Value Estimate (Valuation Rage Time):
| Method | Basis | FV Range |
|---|---|---|
| DCF | 25% ROCE; 12% discount rate | ₹500–₹625 |
| PE Multiples | Sustainable P/E of 30–35x | ₹420–₹490 |
| EV/EBITDA | 15x on FY25 EBITDA | ₹550–₹600 |
Verdict: Premium pricing justified for growth + exports + infra tailwind. Fair Value Range: ₹500–₹600
6. What’s Cooking – News, Triggers, Drama
- July 2025: New orders worth ₹69 Cr; total order book: ₹844 Cr
- Acquisition Alert: 80% stake in WesTech Process Equipment India → Moves Jash deeper into industrial processing segment
- New Plant: “Shivpad” manufacturing facility commissioned. Production begins August 2025
- Investor Day Invite: Because even valve makers want to look like startup darlings now
7. Balance Sheet
(₹ Cr)
| Year | Equity | Reserves | Borrowings | Assets | Net Block |
|---|---|---|---|---|---|
| FY21 | 12 | 144 | 72 | 316 | 110 |
| FY23 | 12 | 227 | 82 | 449 | 116 |
| FY25 | 13 | 420 | 99 | 748 | 171 |
Key Observations:
- Steady reserve accretion = self-funded growth
- Leverage under control (D/E < 0.3x)
- Massive capex in FY24–25 = Shivpad & WesTech
8. Cash Flow – Sab Number Game Hai
(₹ Cr)
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY21 | 35 | -12 | -22 | 1 |
| FY23 | 34 | -16 | -13 | 5 |
| FY25 | 55 | -72 | -2 | -19 |
Cash Talk:
- Operating cash solid, tracking EBITDA
- Capex-heavy in FY25 due to expansion & M&A
- Still manageable due to internal accruals
9. Ratios – Sexy or Stressy?
FY25 Snapshot:
| Metric | Value |
|---|---|
| ROE | 22% |
| ROCE | 25% |
| OPM | 17% |
| Inventory Days | 209 |
| Debtor Days | 112 |
| CCC | 229 Days |
Key Insight:
Inventory is bulky, but expected in infra supply chain. Margins, returns, and efficiency still solid.
10. P&L Breakdown – Show Me the Money
FY25 (₹ Cr)
| Item | Value |
|---|---|
| Revenue | 735 |
| Operating Profit | 127 |
| Other Income | 10 |
| Interest | 13 |
| Depreciation | 17 |
| PBT | 108 |
| PAT | 87 |
This is what a healthy, cash-generating manufacturing biz should look like.
11. Peer Comparison
| Company | Sales (Cr) | P/E | ROE | OPM | CMP/BV |
|---|---|---|---|---|---|
| Kaynes | 2,721 | 137x | 11% | 15% | 13.6x |
| Tega | 1,639 | 59x | 15% | 21% | 8.5x |
| Jyoti CNC | 1,817 | 72x | 21% | 27% | 13.9x |
| Jash | 735 | 41x | 22% | 17% | 8.3x |
Observation: Jash is cheaper than peers on P/E, despite superior return ratios. Underrated much?
12. Miscellaneous – Shareholding, Promoters
- Promoters: 43.4% (down from 52% in 2022)
- FIIs: 2%
- DIIs: ~1%
- Public: 53.7%
Retail onboarding is exploding:
- March 2023: 5,344 shareholders
- March 2025: 52,640!
This ain’t a secret anymore.
13. EduInvesting Verdict™
Jash Engineering Ltd is boring done brilliantly. It doesn’t invent AI chips or fly EVs to Mars—but it supplies crucial water & industrial infrastructure to countries that are still building basic facilities.
With a ₹844 Cr order book, expanding global footprint, high ROE, and value-accretive M&A, Jash is shaping up to be India’s unsexy-but-deadly manufacturing compounder.
Watch this one quietly conquer.
Metadata
– Written by EduInvesting Research Desk | 14 July 2025
– Tags: engineering, manufacturing, capex, compounder, infra, valves, water-gate
