JINKUSHAL INDUSTRIES LIMITED
Comprehensive Stock Analysis & Price Targets
Current Price: ₹122
Market Cap: ₹467.00 Cr
52-Wk High: ₹126.95
52-Wk Low: ₹118.75
Disclaimer: This analysis is for informational purposes only and should not be considered as financial advice. Stock market investments are subject to market risks. Please consult with a financial advisor before making any investment decisions.
Key Investment Highlights
- Strong Revenue Growth: 59.50% YoY revenue growth indicates expanding business operations
- Healthy Asset Base: Total assets increased by 63.89% YoY to ₹1.79B
- Positive ROA & ROC: Return on Assets at 9.85% and Return on Capital at 11.98% show efficient capital utilization
- Cash Position: Cash and short-term investments increased by 39.55% to ₹348.91M
- Valuation Concern: P/B ratio of 4.18 suggests the stock might be trading at premium valuations
Company Overview
JINKUSHAL INDUSTRIES LIMITED is showing strong growth momentum with significant expansion in its operational scale. The company has demonstrated:
- Substantial revenue growth of 59.50% YoY
- Expansion in total assets by 63.89%
- Improved cash position by 39.55%
- Modest net income growth of 2.66%
Investment Outlook
Based on current financial metrics and market position:
- Short-term: Range-bound movement expected between ₹118-127
- Medium-term: Potential upside to ₹135-145 if breakout occurs
- Long-term: Growth trajectory depends on sustaining revenue momentum
- Risk Factors: High operating expense growth, negative free cash flow
Key Financial Metrics
| Metric | Value (2025) | Year-over-Year Change | Analysis |
|---|---|---|---|
| Revenue | ₹3.81B | +59.50% | Exceptional growth indicating business expansion |
| Operating Expense | ₹461.19M | +178.94% | Rising faster than revenue, needs monitoring |
| Net Income | ₹191.40M | +2.66% | Modest growth despite high revenue increase |
| Net Profit Margin | 5.03% | -35.60% | Compression due to rising costs |
| EBITDA | ₹235.16M | +1.02% | Marginal operational profit growth |
| Total Assets | ₹1.79B | +63.89% | Significant asset base expansion |
| Total Liabilities | ₹859.51M | +29.78% | Growing but at slower pace than assets |
| Return on Assets | 9.85% | - | Healthy return on asset base |
| Return on Capital | 11.98% | - | Efficient capital utilization |
Cash Flow Analysis
| Cash Flow Component | Value (2025) | Year-over-Year Change | Implications |
|---|---|---|---|
| Cash from Operations | ₹-112.47M | +52.81% | Negative operational cash flow is concerning |
| Cash from Investing | ₹-55.65M | +24.71% | Capital expenditure for future growth |
| Cash from Financing | ₹132.99M | -51.85% | Reduced financing activities |
| Free Cash Flow | ₹-372.51M | -19.94% | Negative FCF indicates cash burn |
| Net Change in Cash | ₹-26.57M | +26.30% | Cash position decline but at slower rate |
Price Targets & Investment Levels
| Level Type | Price (₹) | Potential Gain/Loss | Signal Strength | Rationale |
|---|---|---|---|---|
| Strong Buy Zone | 115 - 118 | +3.4% to +6.1% | High | Near 52-week low with strong support |
| Current Price | 122 | - | Neutral | Mid-range valuation |
| Breakout Level | 127 | +4.1% | Medium | Above 52-week high resistance |
| Upside Target 1 | 135 | +10.7% | Medium | Based on revenue growth premium |
| Upside Target 2 | 145 | +18.9% | Low | Optimistic growth scenario |
| Profit Booking Zone | 140 - 150 | +14.8% to +22.9% | High | Optimal profit-taking levels |
| Breakdown Level | 118 | -3.3% | Medium | Below 52-week low support |
| Downside Target 1 | 110 | -9.8% | Medium | Technical support level |
| Downside Target 2 | 100 | -18.0% | Low | Fundamental valuation support |
| Strong Sell Zone | Below 100 | -18%+ | High | Break of key support levels |
Support & Resistance Levels
| Level Type | Price (₹) | Strength | Significance |
|---|---|---|---|
| Major Resistance | 127 | Very Strong | 52-week high breakout level |
| Minor Resistance | 125 | Medium | Psychological level |
| Current Level | 122 | - | Trading range |
| Minor Support | 120 | Medium | Psychological level |
| Major Support | 118 | Strong | 52-week low level | tr>
| Strong Support | 115 | Very Strong | Historical support zone |
Valuation Metrics
| Valuation Parameter | Value | Industry Comparison | Assessment |
|---|---|---|---|
| Price-to-Book (P/B) Ratio | 4.18 | Premium | Higher than industry average |
| Market Capitalization | ₹467.00 Cr | Small Cap | Potential for high growth |
| Enterprise Value/Revenue | 1.23 | Moderate | Reasonable for growth company |
| Enterprise Value/EBITDA | 19.85 | Premium | High growth expectations priced in |
| PEG Ratio (Est.) | 1.8 | High | Growth may not justify current valuation |
Risk Analysis
| Risk Factor | Level | Impact | Mitigation |
|---|---|---|---|
| Operating Expense Growth | High | Negative | Monitor cost control measures |
| Negative Cash Flow | Medium-High | Negative | Watch for improvement in coming quarters |
| Profit Margin Compression | Medium | Negative | Evaluate pricing power and cost structure |
| Premium Valuation | Medium | Negative | Requires sustained high growth |
| Revenue Concentration | Low-Medium | Neutral | Diversification reduces risk |
Trading Strategy Summary
| Strategy | Action | Price Zone (₹) | Risk Level | Time Horizon |
|---|---|---|---|---|
| Aggressive Buying | Buy | 115 - 118 | Medium | Short to Medium Term |
| Conservative Buying | Buy on Dips | Below 115 | Low | Medium to Long Term |
| Breakout Trading | Buy | Above 127 | Medium-High | Short Term |
| Partial Profit Booking | Sell 25-50% | 135 - 140 | Low | Medium Term |
| Full Profit Booking | Sell 100% | 145 - 150 | Low | Medium Term |
| Stop Loss (Short-term) | Sell | Below 118 | High | Short Term |
| Stop Loss (Long-term) | Sell | Below 110 | Medium | Long Term |
Note: The analysis is based on current financial data and technical indicators. Price targets are projections and may change based on market conditions, company performance, and broader economic factors. Always use proper risk management and position sizing in your trading decisions.
Final Recommendation
Overall Assessment: JINKUSHAL INDUSTRIES LIMITED shows promising growth with expanding operations but faces challenges in profitability and cash flow management.
Investment Rating: MODERATE with caution due to premium valuation and negative cash flows
Suggested Allocation: 3-5% of portfolio for aggressive investors, 1-2% for conservative investors
Monitoring Parameters: Next quarter's operating expenses, cash flow improvement, and revenue sustainability
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