At a Glance
Jasch Industries, the low-profile maker of synthetic leather and thickness gauges, pulled off a ₹2.2 Cr profit on ₹41.9 Cr revenue in Q1 FY26. The stock tanked 4.8% to ₹185, still clinging to a P/E of 16.2. Margins are yo-yoing like a teenager’s mood swings, and growth is stuck in first gear (5-year sales CAGR: 7%). Yet, with ROE at 12.6% and ROCE at 14.7%, this tiny ₹126 Cr company refuses to die quietly.
1. Introduction
Jasch is the company you’ve probably never heard of unless you work in auto interiors or own a PVC handbag. They make synthetic leather (PVC/PU), PU resins, and industrial gauges. The stock price has moved like a slow scooter compared to peers, but the fundamentals aren’t as bad as the recent 4.8% fall suggests. The leather business is stable, the gauge business adds niche tech value, but growth? Meh.
2. Business Model (WTF Do They Even Do?)
- Coated Fabrics & Synthetic Leather: For automotive, upholstery, and fashion industries.
- PU Resins: Raw material for making synthetic leather.
- Industrial Gauges: Measurement tools used in manufacturing.
Revenue is 80% leather, 20% others. Diversified? Barely.
3. Financials Overview
Q1 FY26 Results:
- Revenue: ₹41.9 Cr (↓16% YoY)
- EBITDA: ₹4.1 Cr (OPM 9.7%)
- PAT: ₹2.2 Cr (EPS ₹3.25)
FY25:
- Revenue: ₹183.9 Cr
- PAT: ₹7.8 Cr
- EPS: ₹11.5
Margins have improved from the disastrous FY23 lows but remain inconsistent.
4. Valuation
- P/E: 16.2 (moderate)
- P/B: 2x
- EV/EBITDA: ~9x
Fair Value Range: ₹130–₹160 considering slow growth and patchy margins.
5. What’s Cooking – News, Triggers, Drama
- AGM Notices: Routine compliance, no major corporate drama.
- Industrial Demand: Auto leather demand steady; gauges niche but growing.
- Demerger Aftermath: Legacy issues with shareholder claims still ongoing.
6. Balance Sheet
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Assets | 78 | 86 | 110 |
| Liabilities | 39 | 29 | 46 |
| Net Worth | 41 | 50 | 57 |
| Borrowings | 8 | 13 | 22 |
Comment: Rising debt (₹22 Cr), net worth improving slowly.
7. Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 3 | 4 | 8 |
| Investing | -1 | -4 | -19 |
| Financing | 1 | 3 | 8 |
Remark: Negative investing cash flows due to capex—good if it pays off.
8. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 24% | 13% | 13% |
| ROCE | 6% | 22% | 15% |
| PAT Margin | 4% | 9% | 8% |
| D/E | 0.2 | 0.3 | 0.4 |
Verdict: ROE is decent, but debt creeping up.
9. P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 166 | 170 | 184 |
| EBITDA | 7 | 15 | 14 |
| PAT | 20 | 16 | 7.8 |
Comment: FY23 was an outlier due to high other income.
10. Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| KPR Mill | 6,388 | 797 | 49 |
| Garware Tech. | 1,540 | 231 | 38 |
| Jasch Industries | 184 | 7.8 | 16 |
Verdict: Jasch is a micro player; valuations are still tolerable.
11. Miscellaneous – Shareholding, Promoters
- Promoter Holding: 57.6%
- FIIs/DIIs: Negligible
- Public: 42.4%
- Dividend: None. Jasch hoards cash like a dragon.
12. EduInvesting Verdict™
Jasch Industries is a steady but uninspiring microcap. It makes synthetic leather, has some niche gauge tech, and posts profits—but growth is as flat as yesterday’s soda. Promoter holding stable, debt rising but manageable.
SWOT Analysis
- Strengths: Niche products, consistent profits, moderate valuation.
- Weaknesses: Low growth, margin volatility, no dividends.
- Opportunities: Automotive demand recovery, industrial gauge expansion.
- Threats: Raw material price swings, competition from larger textile firms.
Verdict: A slow-moving leather turtle—safe for now, but don’t expect it to outrun the hares.
Written by EduInvesting Team | 29 July 2025
SEO Tags: Jasch Industries, Q1 FY26, Synthetic Leather, Microcap Textile
