BSE:500223

Stock Analysis Report

Executive Summary

JCT Limited manufactures and sells cloth and nylon filament yarn products in India.

Risk Analysis

Earnings have declined by -63.7% per year over past 5 years

Has less than 1 year of cash runway

Does not have a meaningful market cap (₹629M)

Currently unprofitable and not forecast to become profitable over the next 3 years

+ 1 more risk


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

How has JCT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500223's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.8%

500223

1.1%

IN Luxury

-0.8%

IN Market


1 Year Return

-48.2%

500223

18.4%

IN Luxury

11.1%

IN Market

Return vs Industry: 500223 underperformed the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: 500223 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

500223IndustryMarket
7 Day-8.8%1.1%-0.8%
30 Day-16.1%3.3%-2.3%
90 Day-25.5%9.6%2.1%
1 Year-48.2%-48.2%19.2%18.4%13.1%11.1%
3 Year-85.5%-85.5%54.9%51.5%22.9%16.2%
5 Year-80.0%-80.0%106.1%99.4%34.9%22.6%

Price Volatility Vs. Market

How volatile is JCT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is JCT undervalued compared to its fair value and its price relative to the market?

0.16x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 500223's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 500223's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 500223 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 500223 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500223's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500223 is good value based on its PB Ratio (0.2x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is JCT forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.8%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as JCT has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has JCT performed over the past 5 years?

-63.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500223 is currently unprofitable.

Growing Profit Margin: 500223 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 500223 is unprofitable, and losses have increased over the past 5 years at a rate of -63.7% per year.

Accelerating Growth: Unable to compare 500223's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 500223 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (2.5%).


Return on Equity

High ROE: 500223 has a negative Return on Equity (-28.32%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is JCT's financial position?


Financial Position Analysis

Short Term Liabilities: 500223's short term assets (₹2.4B) do not cover its short term liabilities (₹3.3B).

Long Term Liabilities: 500223's short term assets (₹2.4B) exceed its long term liabilities (₹1.8B).


Debt to Equity History and Analysis

Debt Level: 500223's debt to equity ratio (64.9%) is considered high.

Reducing Debt: 500223's debt to equity ratio has reduced from 217% to 64.9% over the past 5 years.


Balance Sheet

Inventory Level: 500223 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500223's debt is covered by short term assets (assets are 1.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 500223 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 500223 has less than a year of cash runway if free cash flow continues to grow at historical rates of 31.7% each year.


Next Steps

Dividend

What is JCT's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 500223's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 500223's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 500223's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 500223's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 500223's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Samir Thapar (54yo)

25.7yrs

Tenure

₹10,661,000

Compensation

Mr. Samir Thapar has been the Managing Director of JCT Ltd at Gupta & Syal Ltd. since June 2, 1994. Mr. Thapar serves as the President of the Indian Body Building Federation and Executive Vice-President of ...


CEO Compensation Analysis

Compensation vs Market: Samir's total compensation ($USD149.08K) is above average for companies of similar size in the Indian market ($USD50.21K).

Compensation vs Earnings: Samir's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Samir Thapar
Chairman & MD25.7yrs₹10.66m0.032% 203.5k
Priya Thapar
Director of Strategic Business Development & Whole Time Director6.3yrs₹2.74m0.031% 195.0k
Vinod Singhal
Chief Financial Officer3.5yrs₹1.78mno data
J. Gupta
General Manager of Accounts0yrsno datano data
Rajmohan Singh
Senior Vice President of Group Human Resources0yrs₹746.00kno data
Sandeep Sachdeva
Company Secretary1.4yrsno datano data
Kamal Bhasin
Business Head of Textile & Filament Divisions3.5yrsno datano data

3.5yrs

Average Tenure

Experienced Management: 500223's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Samir Thapar
Chairman & MD25.7yrs₹10.66m0.032% 203.5k
Priya Thapar
Director of Strategic Business Development & Whole Time Director6.3yrs₹2.74m0.031% 195.0k
Ajit Doshi
Independent Non Executive Director7.3yrs₹766.00kno data
Chander Bhanot
Independent Non Executive Director7.1yrs₹783.00kno data
Avaya Mohapatra
Non-Executive Nominee Director2.8yrs₹250.70kno data
Ramswaroop Samria
Independent Non-Executive Director1.8yrs₹366.00kno data

6.7yrs

Average Tenure

54yo

Average Age

Experienced Board: 500223's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

JCT Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: JCT Limited
  • Ticker: 500223
  • Exchange: BSE
  • Founded: 1946
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹628.820m
  • Shares outstanding: 838.43m
  • Website: https://www.jct.co.in

Number of Employees


Location

  • JCT Limited
  • 305-309, Rattan Jyoti Building
  • 3rd Floor
  • New Delhi
  • Delhi
  • 110008
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500223BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 1994

Biography

JCT Limited manufactures and sells cloth and nylon filament yarn products in India. It operates through two segments, Textiles and Filament Yarn. The company provides cotton, polyester, nylon, and various blends, including cotton/polyester, cotton/nylon, and polyester/viscose; single and plied yarns; cotton lycra and P/C lycra stretch materials; and bamboo and linen fibers, as well as various weaves comprising twills, plains, dobbies, ripstops, cords, satins, oxfords, ducks, drills, tussores, ottomans, etc. for use in fashion wear, sportswear, outerwear, defense active wear, school uniforms, and infant and medical wear. It also offers various finishes and coatings, prints and yarn dyeds, and organic cotton fabrics; and nylon yarns for apparels, home textiles, and semi-industrial products, as well as supplies nylon 6 chip products. In addition, the company provides technical textiles for industrial and protective wear, sportswear, fashion wear, outerwear, hospitality, cleanroom fabrics, bags and accessories, home furnishings, parachutes and hot air balloons, tents and car accessories, rainwear and umbrella, and footwear; and bed and bath linens, comforters, duvet covers, dohars, diwan sets, pillows, and cushions, as well as table cloths and napkin sets, blankets, and other accessories collections for home décor. Further, it offers shorts, trousers, shirts, lowers, tracksuits, jackets, work wear garments, etc.; and protective fabrics for various industries, as well as retails in shirts, trousers, denims, jackets, T-shirts, tracksuits, shorts, cargoes, caps, belts, bags, etc. under the Tyrock brand. The company also exports its products to the United States, Europe, the Far East, the Middle East, Mauritius, South America, Africa, Southeast Asia, and internationally. JCT Limited was founded in 1946 and is based in New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 12:48
End of Day Share Price2020/02/17 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.