Jash Engineering Limited

Jash Engineering Ltd is Gwalior, MP based company is engaged in manufacturing of wide range of products used in water intake systems, water and waste water pumping stations and treatment plants, storm water pumping stations, water transmission lines, power, steel, cement, paper & pulp, petrochemicals, chemical, fertilizers and other process plants. Company design, develop and market products like water control gates, flap valves, knife gates valves, energy dissipating valves, water hammer control valves, fine and coarse screens, screening conveying equipment, screening washing and compaction equipment, industrial valves for bulk solids handling, hydro power screw generator, screw pump and process equipment like detritors, clarifiers, clariflocculators, thickeners, decanters aerators, trickling filters, dissolved air flotation (DAF) units, rotary drum slackers, rake classifiers, pressure sand filters, etc. for water, water waste and effluent treatment plants. Jash Engineering Design, Casting, Fabrication, and Assembly & Test all products it manufacture. Company caters to the domestic as well as international markets. Jash Engineering has 500 employees. On performance front, JEL has (on consolidated basis) posted turnover/net profits of Rs. 113.91 cr. / Rs. 7.73 cr. (FY14), Rs. 119.82 cr. / Rs. 7.62 cr. (FY15), Rs. 121.94 cr. / Rs. 7.28 cr. (FY16) and Rs. 161.16 cr. / Rs. 10.26 cr. (FY17). For FY 15 and 16 it saw decline in bottom line and thus pressure on margins despite improved top line and higher other income. JEL has posted an average EPS of Rs. 9.22 and average RoNW of 11.17% for last three fiscals. Issue is priced at a P/BV of 1.37. It has no listed peers to compare with. If we attribute latest earnings on fully diluted equity post issue, then asking price is at a P/E of around 14. Issue appears to have been fully priced. On merchant banker’s front, this is the first mandate from its stable and has no track record. As per financials, company's growth is good except some pressure on margins for FY 15 and FY 16, RoNW is 11.17% for last three fiscals and issue is fully priced. So we give NEUTRAL rating to this SME IPO.

• 1 Mr. Laxminandan Amin
• 2 Mr. Pratik Patel
• 3 Ms. Bhairavi Patel
• 4 Mr. Harsh Patel