1. At a Glance
Jayant Agro Organics is the global flag bearer of castor oil and derivatives, shipping the sticky stuff to 70+ countries. At ₹261/share and P/E of just 14x, it’s cheaper than your Netflix subscription. But growth? As flat as a soda left open overnight.
2. Introduction with Hook
Picture a yoga guru selling castor oil as the elixir of life – that’s Jayant Agro’s sales pitch. They make 80+ castor-based chemicals, but sales growth over five years? 0.16% – even snails are embarrassed. Yet, they managed to keep profits (barely) afloat and dividend yield at 0.96%.
3. Business Model (WTF Do They Even Do?)
They take castor beans, crush them, squeeze out oil, and turn it into derivatives (oleochemicals) that end up in paints, lubricants, cosmetics, and industrial applications. Basically, they convert farmer’s produce into chemistry magic. But it’s still an agri-commodity play wearing a lab coat.
4. Financials Overview
- Q1 FY26 Revenue: ₹672 Cr (-6% YoY)
- Net Profit: ₹16 Cr (+4% YoY)
- OPM: 5% (industry meh)
- TTM Sales: ₹2,484 Cr, PAT ₹55 Cr
Margins are slim but stable; ROCE at 12.6% and ROE at 9.6% keep it respectable.
5. Valuation
- P/E: 14x – looks reasonable
- Book Value: ₹192; CMP/BV: 1.36x – not overpriced
- Fair Value Range: ₹220–₹300
At this price, it’s like buying castor oil at MRP – not cheap, not daylight robbery.
6. What’s Cooking – News, Triggers, Drama
- Completed merger with Jayant Finvest in Dec 2024.
- Pollution violations in Feb 2024 (closure notice revoked in July).
- New facility Jacaco Pvt Ltd operational since Mar 2024.
- Continuous expansion of derivative products – niche specialty play.
More drama than a soap opera: from shutdowns to expansions within months.
7. Balance Sheet
| ₹ Cr | Mar 24 | Mar 25 |
|---|---|---|
| Assets | 873 | 869 |
| Liabilities | 873 | 869 |
| Net Worth | 542 | 577 |
| Borrowings | 159 | 110 |
Debt coming down like your new year resolutions.
8. Cash Flow – Sab Number Game Hai
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Ops CF | 115 | 16 | 118 |
| Inv CF | -41 | -53 | -28 |
| Fin CF | -81 | 36 | -93 |
Operating cash is healthy (finally), but financing outflows scream “paying off old sins.”
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 10% |
| ROCE | 13% |
| D/E | 0.19 |
| PAT Margin | 4% |
| P/E | 14x |
Ratios are okay-ish. Not sexy like Pidilite, but not stressy like a penny stock.
10. P&L Breakdown – Show Me the Money
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 2,778 | 2,150 | 2,528 |
| EBITDA | 97 | 97 | 109 |
| PAT | 52 | 54 | 54 |
Revenue dipped then recovered. PAT stuck in neutral – like a car on a slope without fuel.
11. Peer Comparison
| Company | P/E | ROE | CMP/BV |
|---|---|---|---|
| Pidilite | 70x | 23% | 15x |
| Deepak Nitrite | 38x | 13% | 4.8x |
| Vinati Organics | 47x | 16% | 6.9x |
| Jayant Agro | 14x | 10% | 1.36x |
Jayant is the budget castor king among chemical royalty.
12. Miscellaneous – Shareholding, Promoters
Promoters hold a stable 67%. FIIs are basically absent, DIIs don’t care, and the public holds 33%. Clearly, this stock isn’t on anyone’s hotlist yet.
13. EduInvesting Verdict™
Jayant Agro is a slow, steady, dividend-paying tortoise in a market full of chemical hares. Specialty positioning is a plus, but growth is stuck in first gear. Watch this if you like stability, not fireworks.
Written by EduInvesting Team | 26 July 2025
Tags: Jayant Agro, Castor Oil Derivatives, Specialty Chemicals, Small Cap Analysis, EduInvesting Premium
