Capital Goods Sector | Initiating Coverage

Jash Engineering (JASH IN)

BUY 32%| Target Price: Rs. 800
03-Jan-2025

Market Leader in Water Control Gates with Healthy Stock Information

Revenue Visibility; Initiate with BUY CMP (Rs)

52 Week H/L 654/293
605

Key Triggers? Market Cap (Rs bn) 37.9

Free Float (%) 47.2
➢ The company maintains a leadership position in water control gates with 60-70% Shares O/S (mn) 62.6
market share in India and ranks 5th in the US. With US revenue clocking 28.3% CAGR 6M Daily Avg Volume (mn) 0.1
over FY21-24, the company is poised to gain further market share and climb to No.3
position, as it builds a new plant in Pearland. Shareholding Pattern (%)
Mar-24 Jun-24 Sep-24
➢ The company has diversified its product range through strategic acquisitions of MAHR,
Promoters 49.4 43.6 43.6
Sureseal India, Shivpad, Rodney Hunt and Waterfront UK.
FII / NRI 1.2 1.7 1.6
➢ Rodney Hunt clocked 28.3% CAGR over FY21-24. While Shivpad reported 18.3% CAGR MF/DII 3.6 3.5 0.6
over FY21-23, it delivered a strong performance in 1HFY25 with revenue rising by Others 45.8 51.2 54.2
133% YoY to Rs105mn and PAT margin rising to 11.7% from 2.2% YoY.
Stock Performance
➢ With major operations in India (40% revenue share), North & South America (35%)
800 NIFTY Rebased Jash Engineering Ltd
and RoW (25%), the company is rapidly expanding its global footprint. Notably, export
markets are driving faster revenue growth compared to domestic operations.
500
➢ The company’s products are approved by consultants and government authorities
across Europe, the US, Middle East, Southeast Asia and Africa. 200
Dec-23 Feb-24 Apr-24 Jun-24 Aug-24 Oct-24 Dec-24
➢ Leveraging its PQ credentials, the company aims to boost export revenue share to
~65% by FY27/FY28 and driving EBITDA margins towards 13%.
Performance 6 Months 12 Months 2 Years
➢ With its current manufacturing capacity, the company targets peak revenue of Rs8bn. Abs Return (%) 32.8 102.1 256.4
However, with 3 plants set to commission between FY25 and FY27, the company sees
clear revenue visibility through FY28 with at least 15-20% CAGR. Ratios FY24 FY25E FY26E FY27E
Thrust on Water Sustainability through Water Treatment – Huge Potential: Global water P/E(x) 56.1 40.8 38.1 30.6
and wastewater treatment market is likely to clock 7.5% CAGR to $346bn in 2024 and EV/EBITDA 37.7 26.2 23.7 19.2
~$617bn by 2032 with the US alone is likely to account for $314bn by 2032. RoE (%) 22.6 23.6 20.6 21.2
RoCE (%) 20.7 24.2 22.0 22.9
Wide Product Offering and Diversification – Augur Well: While the company offers a wide
range of water treatment equipment, it is poised to maintain its No.1 position in water
control gates in India and increase its presence in other water treatment equipment space,
to cash in on a significant share of the Rs100-110bn market opportunity.

Outlook & Valuation – Initiate Coverage with BUY and a Target Price of Rs800

We are bullish on the stock due to several key factors: (1) increasing revenue contribution
and profitability of Rodney Hunt, USA; (2) greater product diversification, making the
company a one-stop destination for all water treatment equipment; (3) foray into North and
South America, with exports expected to contribute ~65% to total revenue by FY27/FY28,
driven by higher margin; (4) expected turnaround in Shivpad Engineers from FY25 onwards; Research Analyst:
and (5) higher investments in water/wastewater treatment space. Thus, we initiate coverage Dheeraj Ram | +91 22 6611 1757
on Jash Engineering with BUY and a Target Price of Rs800, valuing the stock at 40x of FY27E tddheeraj@ashikagroup.com
EPS.
Financials (Rs in mn) FY23 FY24 FY25E FY26E FY27E Key Ratios FY23 FY24 FY25E FY26E FY27E
Revenue 4,020 5,157 6,750 7,763 9,005 P/E (x) 70.4 56.1 40.8 38.1 30.6
EBITDA 638 989 1,418 1,549 1,883 EV/EBITDA (x) 57.7 37.7 26.2 23.7 19.2
EBITDA (%) 15.9 19.2 21.0 20.0 20.9 EV/Sales 9.2 7.2 5.5 4.7 4.0
PAT 517 668 928 993 1,239 RoE (%) 24.3 22.6 23.6 20.6 21.2
EPS (Rs) 8.6 10.8 14.8 15.9 19.8 RoCE (%) 16.9 20.7 24.2 22.0 22.9

Before reading this report, you must refer to the disclaimer on the last page.
Jash Engineering | Initiating Coverage

Revenue is likely to clock 20.4% CAGR over FY24-27E Gross profit is expected to clock 19.7% CAGR over FY24-27E
10,500 35.0 6,000 32.5 35.0
30.9
28.3 30.0
30.0 5,000 26.3
8,500
22.8 25.0 21.2 25.0
4,000
6,500 17.8 18.0 20.0
20.0
3,000 15.0
15.0 16.0 12.0 15.0
12.1 15.0 11.4
4,500 9.4 2,000
10.0
7.8 10.0
1,000

1,522

1,695

1,898

2,300

3,047

3,848

4,425

5,223
2,500 5.0
2,777

2,994

3,676

4,020

5,157

6,750

7,763

9,005
5.0
- -
500 - FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E
FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E

Revenue (Rs mn) YoY Growth (%) Gross Profit (Rs mn) YoY Growth (%)

Source: Company, Ashika Institutional Research Source: Company, Ashika Institutional Research

EBITDA is projected to clock 24.0% CAGR over FY24-27E PAT is projected to record 22.9% CAGR over FY24-27E
2,000
20.9
25.0 1,600 16.0
21.0 13.7 13.8
20.0 12.9 12.9 12.8 14.0
19.2
20.0
1,500 17.3 1,200 12.0
15.9 10.2
13.7 8.8 10.0
12.7 15.0
7.2
1,000 800 8.0

10.0 6.0

500 400 4.0

5.0

1,239
1,418

1,549

1,883

2.0
305

322

517

668

928

993
380

517

468

638

989

201

- - - -
FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E

EBITDA (Rs mn) EBITDA Margins (%) PAT (Rs mn) PAT Margins (%)

Source: Company, Ashika Institutional Research Source: Company, Ashika Institutional Research

Order book is projected to record 15.6% CAGR over FY24-27E Order Intake is projected to clock 15.6% CAGR over FY24-27E
14,000
14,000

12,000
12,000

10,000
10,000
8,000
8,000
6,000
6,000
4,000
4,000
10,328

12,123
2,994
3,397
2,777

3,900

4,350
3,676

6,030
4,020

7,840
5,157

9,090
6,750

7,763

9,005

2,000
10,328

12,123
10,800
3,497

7,840
3,397
3,921

3,900

4,350
4,126

6,030
5,700

6,967

9,090
8,000

9,000

2,000
-
-
FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E
FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E
Order book (Rs mn) Revenue (Rs mn) Order book (Rs mn) Order intake (Rs mn)

Source: Company, Ashika Institutional Research Source: Company, Ashika Institutional Research

Page | 2
Jash Engineering | Initiating Coverage

Investment Rationale
Our investment thesis is based upon the following premises: shuffle in order of imp

1. Thrust on Water Sustainability through Water Treatment

2. Strategic Acquisitions and Turnaround of Subsidiaries
3. Rising Global Demand for Storm Water Control and Flood Control
4. Wide Product Offering and Diversification – Augur Well

1. Thrust on Water Sustainability through Water Treatment

The global water and wastewater treatment market, which was pegged at $323.3bn in 2023, is likely to clock 7.5%
CAGR to reach $346bn in 2024 and $617bn by 2032 with the US alone is expected to account for $314bn by 2032.
Despite its critical importance, only 1.2% of global public spending is allocated to water, significantly less than
energy and transport sectors.

Out of the spending, 76% goes to water supply and sanitation, while water transport, irrigation and hydropower
account for 16%, 8% and 2%, respectively. As per the World Bank estimates, while funding is 64% government-
driven, 36% funding comes from international agencies.

Why water segment set to cash in on imminent billion-dollar investment opportunities

Source: VA Tech Wabag Annual Report, Ashika Institutional Research

North America, the largest market for water treatment, has a current water treatment equipment market size of
Rs84.5bn. With Jash Engineering’s strategic focus on English-speaking countries, the accessible market size for
the company is pegged at Rs100-110bn.

Market size of water treatment equipment in North America stands at Rs84.5bn now; the company is set to
cash in on the significant opportunities in North America
16 15 Water control gates

Screening equipment
12.5
12 Knife gate valves
10 10 10
Treatment process equipment
8.5 8.5
8 Water intake equipment

5 5 Renewable energy & pumping

4
Water hammer control valves &
Air vessels
Mixing & Aeration equipment,
Decanters, Turbo blowers
0
Disc filter
Water Treatment Equipment Market size in North America (in bn)

Source: Company, Ashika Institutional Equities

Page | 3
Jash Engineering | Initiating Coverage

With increasing presence in APAC, Europe, North America and Middle East, the company’s revenue is likely to
increase from the US, France, Hong Kong, Canada, UK, Japan and Germany etc.
50.0%

40.0% 35.4%

28.6%
30.0%
23.1%

20.0%

8.4%
10.0%
4.5%

0.0%
Water and waste water treatment market share in 2023 (%)

Asia Pacific Europe North America Latin America Middle East & Africa
Source: Precedence Research

China leads with 25,000 STPs; despite having larger population, India has only 1,093 STPs which presents a
major growth opportunity for water treatment plants and equipment
30,000
25,000
25,000

20,000
16,000
15,000

10,000 7,000

5,000
1,093 350 204 153 68
-
China USA UK India Oman Saudi Arabia UAE Iran
No. of sewage treatment plants
Source: H20bazaar, Water UK

Investment in Waste Water Treatment in the US and sea water desalination projects in the MENA: Under the
funds released from Bipartisan Infrastructure Law, $125mn investment for 5 projects in California and Utah for
large scale water treatment plants. However, $50bn has been allocated so far to Improve drinking water, waste
water and storm water infrastructure.

Currently, $39.3bn is being spent in the MENA region for sea water desalination projects, which poses the
major growth opportunities for water treatment equipment
16.0 14.6

12.0
10.3

8.0
Investment (in $bn)

4.2
4.0 3.3 3.2
2.4
1.0
0.2 0.1 0.2
0.0
Saudi Arabia UAE Jordan Egypt Oman Morocco Tuinisa Algeria Kuwait Others

Source: Statista.com

Page | 4
Jash Engineering | Initiating Coverage

Investment in Waste Water Treatment in India: Currently only 28% (20,236 MLD) of wastewater is treated in
India, which implies that 72% of the wastewater is disposed to rivers/lakes.

72% of wastewater discharged into rivers in Indian cities; this creates opportunities worth Rs351bn by 2032
16,000 87% 92% 95% 100%
13,503 84%
90%
80%
12,000 67%
70%
60%
8,000 50%
4,807 40%
4,472 4,018
3,836 30%
4,000 2,965
20%
485 768 322 10%
143
- 0%
Class 1 cities (>10 lakh Class 1 cities (5-10lakh Class 1 cities (2 to 5 lakh Class 1 cities (1-2lakh Class 2 towns (0.5 - 1
population) population) population) population) lakh population)

MLD (seweage generated) Installed treatment capacity (MLD) Capacity gap (%)
Source: VA Tech Wabag Annual Report, Ashika Institutional Research, Jal Shakti

India’s water treatment equipment market, which is pegged at Rs12bn now, is expected to grow to Rs18-
20bn, provided the government implements allocated funds
3
Water control gates

2.5 Screening equipment

2 2 2 Knife gate valves

2

1.5 Treatment process equipment

1.5
1.25 1.25 Water intake equipment

1 Renewable energy & pumping

0.75 0.75
0.5 Water hammer control valves & Air
0.5 vessels
Mixing & Aeration equipment,
Decanters, Turbo blowers
0
Disc filter
Water Treatment Equipment Market size in India (in bn)

Source: Company, Ashika Institutional Equities

With expansion manufacturing capacity in Chennai, the company is poised to maintain its No.1 position in water
control gates and increase its presence in other water treatment equipment, positioning itself to capture a
significant share of the Rs20bn market opportunity.

2. Strategic Acquisitions and Turnaround of Subsidiaries

The company has several acquisitions over the years. While it acquired Sureseal India in 2009 for Rs150mn, it
acquired Shivpad Engineers in 2011 for Rs270mn. In 2014, it acquired Mahr Maschinenbau for Rs260mn, while
Rodney Hunt and Waterfront UK were acquired for $4mn andRs260mn in 2016 and 2023, respectively. The
company is all set to increase its global market share, driven by expansion plans in the US and UK through Rodney
Hunt and Waterfront UK.

▪ Shivpad Engineers, Chennai: It specializes in designing, manufacturing and supplying treatment process
equipment for water, waste-water treatment and sewage treatment plants. It provides chemical process
industry equipment related to solid-liquid separation.

▪ Mahr Maschinenbau, Austria: Mahr Maschinenbau Austria is focused on development of new technology
for screening and screening-handling equipment.

Page | 5
Jash Engineering | Initiating Coverage

▪ Engineering & Manufacturing Jash, HK: It focuses on marketing of screening and screening conveying
equipment. Its products are manufactured at Jash’s Pithampur unit using Mahr Maschinenbau’s technology.

▪ Waterfront Fluid Controls, UK: It designs and manufactured fluid control equipment. It offers products i.e.,
penstocks, flap valves, hydrostatic bellmouth valves, tilting weirs, stoplogs, handstops and floating arms.
Long-term delivery orders are executed in India, while short-term delivery orders are fulfilled in the UK.

▪ JV with Invent, Germany: This 50:50 JV was formed in Feb’23, where the company handles manufacturing,
while Invent manages marketing and sales operations.

Shivpad’s revenue and EBITDA margin declined due to delays in key projects, which are expected to recover
as delayed large orders are likely to be delivered in FY25 and FY26
300 28.0%
269

250 25.3% 232 25.0% 23.0%

23.1%
19.1%
200 181 18.0%
192 18.5%
17.5%
14.9%
150 13.0%

10.6%
100 8.0%
FY21 FY22 FY23 FY24
Revenue (Rs mn) EBITDA M% PAT M%
Source: Company, Ashika Institutional Research

▪ Jash USA, Texas: Jash USA (operating as Rodney Hunt) manufactures a wide range of water control gates and
equipment for water intake systems, water and waste water pumping stations and treatment plants, storm
water pumping stations, water transmission lines, and various industrial applications.

Post-acquisition, Rodney Hunt has scaled up its operations in USA due to make in USA initiative with a robust
EBITDA margin of 12.37% with $26mn revenue
30 20.00%
26

25 15.00%
12.37%
20
20 18 10.00%
4.54% 5.33%
14 7.96%
15 5.00%
2.93%
3.59% 2.24%
10 0.00%
-0.04%
5 -5.00%
FY21 FY22 FY23 FY24
Revenue (USD mn) EBITDA M% PAT M%
Source: Company, Ashika Institutional Research

Capacity Expansion
Manufacturing unit Turnover capacity (Rs mn) Built up area (sq.ft) Location Expected commission
Existing Potential
Unit-I 750 1,25,000 Indore Commissioned
Unit-II 3,500 1,85,000 Indore Commissioned
Unit-III 1,000 75,000 Indore Commissioned
Unit-IV 1,000 50,000 Indore Commissioned
Rodney Hunt Plant 250 60,000 USA Commissioned
Waterfront Fluid Controls 500 23,000. UK Commissioned
New manufacturing plants
Shivpad mfg plant 320-350 60,000 Chennai Feb 25
Unit-V (expansion of Unit-IV) 1,000 55,000. Indore FY27
Pearland, IS NA NA USA FY27
Source: Company, Industry, Ashika Institutional Research

Page | 6
Jash Engineering | Initiating Coverage

3. Rising Global Demand for Storm Water Control and Flood Control
Major countries under risk for storm water and floods, this creates opportunities to expand presence
worldwide for jash engineering

9.9 9.9 9.9 9.8 9.6 9.5 9.3 9.2

8.8 8.7 8.6 8.6 8.4

7.5
6.7

5.7

Risk Index Score

Source: Statista.com

While revenue from India increased, domestic contribution fell due to Revenue contribution from the US rose from 34.8% to 42.5%, led by higher
growing global demand for water control gates and valves replacement demand for water control gate
250 250 45.0%
49.9% 42.5%
48.0% 219
50.0%
206
41.8% 39.2%
200 193 200 40.0%
182 39.9%
40.0% 36.2%
158
34.8%
150 35.0%
150 132
30.0%
125
104
100 30.0%
100 20.0% FY21 FY22 FY23 FY24
FY21 FY22 FY23 FY24

Revenue (Rs mn) India as % of revenue Revenue (Rs mn) USA as % of revenue
Source: Industry, Ashika Institutional Research Source: Industry, Ashika Institutional Research

Revenue contribution from Singapore increased from 0.8% to 6.8%, due With acquisition of waterfront UK, the contribution is expected to increase
to higher demand for flood control and storm water equipment in FY25
12
40
35 4.5%
9.0%
6.8% 9
30 2.3%
8
2.0%
5.0%
0.6% 0.8%
20 0.0%
1.5% 4
0.8% 0.8%
4 -0.5%
1.0%
10 2
6
2 3
-
- -3.0% - -3.0%
FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24

Revenue (Rs mn) Singapore as % of revenue Revenue (Rs mn) UK as % of revenue

Source: Industry, Ashika Institutional Research Source: Industry, Ashika Institutional Research

Page | 7
Jash Engineering | Initiating Coverage

Archimedean Screw Pump: Archimedean screw pumps are widely used in sewage treatment, irrigation, industrial
applications, storm water management, drainage management and power generation. The major markets for
these pumps are: North America, Europe, APAC, LatAM, Middle East and Africa.

Archimedean screw pump market is likely to clock 2.7% CAGR, led by major application in storm water
discharge and sewage discharge, which is likely to aid product diversification of the company
290 280
272
265
258
260 251
245
238
232
230

200
2024 2025E 2026E 2027E 2028E 2029E 2030E 2031E

Archimedean screw pumps market (Rs mn)

Source: Meticulous Research

Key global players in Archimedean screw pump

Source: Meticulous Research

4. Wide Product Offering and Diversification – Augur Well

Jash enjoys 60-70% market share in India for water control gates. It is expanding its revenue share by offering a
comprehensive range of water treatment equipment, including screening equipment, special valves, pumps and
filters, which position the company Jash as a one-stop destination for all water treatment-related equipment.
Acquisition of Rodney Hunt, Waterfront, and its JV with Invent, contribution from other businesses is likely
to rise to 50% from 40%
90%

60% 60%
60% 54%
50% 50% 50%
47%

30% 25%
18% 22% 15%
17% 18% 14% 14% 16% 16% 15%
10% 11% 10%
8%

0%
FY20 FY21 FY22 FY23 FY24 FY28

Water Control Gates Valves Screening Equipment Hydro power and pumping Others

Source: Company, Ashika Institutional Research

Page | 8
Jash Engineering | Initiating Coverage

Product Offerings
Water Control Gates Screening Equipment Special Valves Treatment Equipment Pumps Filtration Equipment
Sluice Gates Trash Rack ZFI series, Knife gate Detriotr Screw pump iFILT Diamond Disc Filter
Open Channel Jash MMR Mono series Knife gate Slow speed fixed aerator
Bulk Head Slide Screen mat Step Slide gate Clarifier
Roller Mahr Prescalator Swing gate
Downward Opening Weir JMR Multi Rake Zero velocity
Butterfly Traveling Band Double Flap
Flap Jash Back Rake Air Cushion
Crest Suspended Trash Rack Energy Dissipating
Stop Logs Fabricated Slide gate
Radial Air
Bonneted Slide gate
Source: Company, Ashika Institutional Research

National framework on recycle and reuse – safe reuse of treated water

Product Description
It is used in water/waste-water treatment plant. Its JV partner, Invent is working on it, the sales likely to
Disc Filter
begin in FY26.
The company is planning to expand into water hammer control product by bladder type air vessels,
Bladder Type Air Vessels
production of which was started in FY24.
Agitators and Mixers The product will be manufactured by Jash and marketed by Invent.
High pressure knife gate valves for oil The company has partnered with Canadian supplier in oil sands industry. Together, the company is
sands developing DN 200 size knife gate valves.
Conveyors and Intake station for solid
The company has already supplied 20 conveyors to SFC’s solid waste station.
waste
Source: Company, Ashika Institutional Research

Outlook & Valuation

We are bullish on the stock due to several key factors: (1) increasing revenue contribution and profitability of
Rodney Hunt; (2) greater product diversification, making the company a one-stop destination for all water
treatment equipment; (3) foray into North and South America, with exports expected to contribute ~65% to total
revenue by FY27/FY28, driven by higher margin; (4) expected turnaround in Shivpad Engineers from FY25
onwards; and (5) higher investments in water/wastewater treatment space. Thus, we initiate coverage on Jash
Engineering with BUY and a Target Price of Rs800 (valuing the stock at 40x of FY27E EPS).

Key Risks:
▪ High inventory days due to delay from the client side.
▪ Geopolitical risk.
▪ Reduced government focus on water treatment.

Page | 9
Jash Engineering | Initiating Coverage

Additional Description

Indore-based Jash Engineering, incorporated in 1973, offers various products for use in water and wastewater
pumping stations and treatment plants, storm water pumping stations, water transmission lines, desalination,
Company Background
power, steel, cement, paper & pulp, petrochemicals, chemicals, fertilizers and other process plants. The
company has six manufacturing facilities and presence across over 45 countries
Presence Global presence in 45+ countries, with major business from India, North & South America.
▪ Pratik Patel, MD
▪ Suresh Patel, ED
Key Management ▪ Dharmendra Jain, CFO
▪ Bhuvanesh Pandey, COO
▪ Sanjay Sharma, VP – Marketing & Sales
Segmental Revenue (%) Geographical Revenue (%)
▪ Water Control Gates: 59 ▪ India: 38
Revenue-mix (as of 1HFY25) ▪ Screening Equipment: 22 ▪ USA: 35
▪ Valves: 10 ▪ FAR & South East Asia: 18
▪ Hydropower & Pumping Equipment & Others: 9 ▪ Europe & Africa: 9
Credit Rating (as of Nov’24) Fitch Ind A1(Affirmed)
Auditors M/s Deloitte Haskins & Sells LLP
Source: NSE, Ashika Institutional Research

Non-Promoter Top 5 Holdings (as per latest disclosure)

Name Shareholding (%)
Axel Schutte 6.33
Zaki Holdings 1.16
Mehta Miten 1.09
Dimensional Fund Advisors 0.38
Motilal Oswal AMC 0.02
Source: Bloomberg, Ashika Institutional Research

Key Management
Name Designation Brief Profile
Mr. Patel, an MBA in Finance, has 31 years of experience at various positions in the company. He looks
Pratik Patel CMD
after the company’s growth strategy, development and international marketing.
Mr. Patel, has 51 years of experience at various positions in the company and Jash Precision Tools. He
Suresh Patel ED
looks after technological improvement in manufacturing and product design.
Mr. Jain has over 28 years of experience in finance, accounts and taxation. He looks after overall financial,
Dharmendra Jain CFO
accounting, commercial and purchase operations of the company and Shivpad.
Mr. Pandey has a wide experience relating to P&L handling, PPC, SCM and purchase, manufacturing, HR,
Bhuvanesh Pandey COO
design and quality. He looks after overall plant operations including implementation of SAP.
Mr. Sharma has over 33 years of experience in MNCs companies like WILO Pumps, Sulzer Pumps and ITT
Sanjay Sharma VP (Marketing & Sales)
Goulds etc.
Source: Company, Ashika Institutional Research

Page | 10
Jash Engineering | Initiating Coverage

Product Offerings at a Glance

Water Control Gate Knife Gate Valve Conveyors and Intake station for solid waste

Screw Pump Bladder Type Air Vessels Multirake Water Screening Equipment

Pre-scalator screen-water screening equipment Pre-scalator screen-water screening equipment Water Stop Log

Swing Gate Valve

Page | 11
Jash Engineering | Initiating Coverage

Financials & Valuations

P&L Statement
Y/E Mar (Rs mn) FY23 FY24 FY25E FY26E FY27E
Net Revenue 4,020 5,157 6,750 7,763 9,005
Change (YoY%) 9.4 28.3 30.9 15.0 16.0
COGS 1,719 2,109 2,903 3,338 3,782
Gross Profit 2,300 3,047 3,848 4,425 5,223
Change (YoY%) 21.2 32.5 26.3 15.0 18.0
Employee Expenses 758 944 1,249 1,540 1,800
Other Expenses 904 1,115 1,181 1,335 1,540
Total Expenses 3,381 4,168 5,333 6,213 7,122
EBITDA 638 989 1,418 1,549 1,883
Change (YoY%) 36.4 54.8 43.4 9.3 21.5
Depreciation 106 108 126 148 161
EBIT 532 881 1,291 1,402 1,722
Change (YoY%) 43.3 65.6 46.6 8.5 22.8
Other Income 132 63 63 63 75
Finance Cost 99 110 117 141 145
Exceptional Items - - - - -
PBT 565 832 1,237 1,324 1,652
Share of P/L of associates - (1) - - -
Tax Expenses 48 165 309 331 413
PAT 517 668 928 993 1,239
Change (YoY%) 60.7 29.1 39.0 7.0 24.8
EPS (Rs)^ 8.6 10.8 14.8 15.9 19.8
^1:5 stock split in Q2FY25.

Balance Sheet
Y/E Mar (Rs.mn) FY23 FY24 FY25E FY26E FY27E
Share Capital 120 124 124 124 124
Reserves & Surplus 2,267 3,388 4,226 5,150 6,295
Net Worth 2,387 3,512 4,350 5,274 6,419
Minority Interest - - - - -
Total Equity 2,387 3,512 4,350 5,274 6,419
Borrowings 769 737 976 1,086 1,116
Provisions 73 86 129 95 101
Deferred Tax Liability 27 13 0 0 0
Accounts Payables 588 696 914 1,052 1,192
Other Current Liabilities 499 779 1,000 1,156 1,311
Other Liabilities 141 220 383 357 365
Total Equity & Liabilities 4,485 6,043 7,752 9,020 10,504
Net Fixed Assets 757 870 1,149 1,112 1,209
CWIP 35.4 55.4 70.0 59.1 71.1
Intangible Assets 300.3 285.0 495.0 495.0 495.0
Accounts Receivables 1,560 1,574 2,034 2,339 2,714
Inventories 1,120 1,612 1,988 2,378 2,694
Investments 0 60 120 160 200
Other Current Assets 55 107 118 134 154
Other Non-Current Assets 28 223.42 27.26 25.76 27.46
Loans & Advances - - - - -
Other Assets 542 945 1,001 1,051 1,178
Cash 89 310 749 1,266 1,761
Total Assets 4,485 6,043 7,752 9,020 10,504

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Jash Engineering | Initiating Coverage

Margin Analysis
Y/E Mar (%) FY23 FY24 FY25E FY26E FY27E
Gross Profit Margin 57.2 59.1 57.0 57.0 58.0
EBITDA Margin 15.9 19.2 21.0 20.0 20.9
EBIT Margin 13.2 17.1 19.1 18.1 19.1
Tax Rate 8.5 19.8 25.0 25.0 25.0
PAT Margin 12.9 12.9 13.7 12.8 13.8

Cash Flow Statement

Y/E Mar (Rs mn) FY23 FY24 FY25E FY26E FY27E
Profit Before Tax 565 832 1,237 1,324 1,652
Depreciation 106 108 126 148 161
Changes In Working Capital (257) (225) (117) (371) (390)
Tax Paid (76) (169) (309) (331) (413)
Interest Paid 99 110 117 141 145
Others (98) (73) (91) - -
CF from Operating Activities 340 583 963 911 1,155
Capex (155) (243) (294) 49 (110)
Change in Investment (4) (440) (310) (165) (165)
CF from Investing Activities (158) (683) (604) (116) (275)
Issue/Repayment of Debt (1) (39) 238 110 30
Dividends Paid (43) (72) (90) (69) (94)
Interest Paid (93) (104) (117) (141) (145)
Others 4 534 100 (30) (15)
CF from Financing Activities (133) 319 131 (130) (224)
Opening Cash Balance 38 89 310 749 1,266
Closing Cash & Bank 89 310 749 1,266 1,761

Key Ratios
Y/E Mar FY23 FY24 FY25E FY26E FY27E
Net Sales Growth (%) 9.4 28.3 30.9 15.0 16.0
EBITDA Growth (%) 36.4 54.8 43.4 9.3 21.5
Valuation Ratios
P/E (x) 70.4 56.1 40.8 38.1 30.6
EV/EBITDA (x) 57.7 37.7 26.2 23.7 19.2
EV/Sales (x) 9.2 7.2 5.5 4.7 4.0
Performance Ratios
RoE (%) 24.3 22.6 23.6 20.6 21.2
RoCE (%) 16.9 20.7 24.2 22.0 22.9
FATO 5.1 6.3 6.7 6.9 7.8
Efficiency Ratios
Receivable days 132 111 110 110 110
Inventory Days 200 236 250 260 260
Payable days 125 111 115 115 115

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Jash Engineering | Initiating Coverage

Traded volume vs. delivery volume (1-Year)

2.5 100%

Millions
90%
2.0 80%
70%
1.5 60%
50%
1.0 40%
30%
0.5 20%
10%
0.0 0%

May/24
Jan/24
Dec/23

Jul/24

Dec/24

Jan/25
Apr/24

Aug/24
Feb/24

Jun/24

Oct/24

Nov/24
Mar/24

Sep/24
Total Volume (Mn) Delivery Vol as % of TTV

Source: Bloomberg, Ashika Institutional Research

Traded volume as percentage of share O/S (1-Year)

3.5%

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%
Dec/23

Feb/24

Sep/24

Dec/24
Jul/24
Apr/24

Nov/24
Jan/24

Mar/24

Jun/24

Aug/24

Oct/24

Jan/25
May/24

Total Volume as % of Share O/S

Source: Bloomberg, Ashika Institutional Research

1-Year Fwd. P/E chart with standard deviation

45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
Dec/23

Feb/24

Sep/24

Dec/24
Apr/24

Nov/24
Jun/24

Jul/24

Aug/24

Oct/24
Jan/24

Mar/24

Jan/25
May/24

1 Year Fwd P/E (x) Mean +1 SDv -1 StDv

Source: Bloomberg, Ashika Institutional Research

Recommendation History
Date CMP (Rs) TP (Rs) Rating Analyst Report Link
03-Jan-25 605 800 BUY Dheeraj Ram

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Jash Engineering | Initiating Coverage

Corporate Office:
1008, Raheja Centre, 10th Floor, 214, Nariman Point, Mumbai - 400021, Ph-022–66111700, Extn. -726
Website: www.ashikagroup.com

Recommendation & Absolute Return (w.e.f. Jan 01, 2025)

BUY Expected positive return of 15% or above in 1-year horizon

ADD Expected positive return of > 0% to 15% in 1-year horizon

REDUCE Expected return of 0% to -15% in 1-year horizon

SELL Expected to fall by >15% in 1-year horizon

UR UNDER REVIEW - Rating and fair value, if any, have been suspended temporarily

CS COVERAGE SUSPENDED - Ashika Institutional Research has suspended coverage of this company

NC NOT COVERED - Ashika Institutional Research does not actively cover this company

Analyst Certification
The undersigned analyst hereby certifies that all the opinions presented in this report accurately reflect their personal views regarding the subject securities, issuers,
products, sectors, or industries. No part of their compensation has been, is, or will be directly or indirectly tied to specific recommendations or views expressed in this
report. The analyst assumes primary responsibility for the creation of this research report and has diligently endeavored to establish and maintain independence and
objectivity in formulating any recommendations.

Investors are strongly advised to carefully consider all relevant risk factors, including their financial condition and suitability to risk-return profiles, and to seek professional
advice before making any investment decisions.

Disclaimer
The research recommendations and information provided herein are intended solely for the personal use of the authorized recipient and should not be construed as an
offer document or as investment, legal, or taxation advice, nor should it be considered a solicitation of any action based upon it. This report is strictly not for public
distribution or use by any individual or entity in jurisdictions where such distribution, publication, availability, or utilization would contravene the law, regulation, or be
subject to registration or licensing requirements.

Recipients of this report will not be treated as customers merely by virtue of receiving it. The content is derived from information obtained from public sources deemed
reliable, but we do not guarantee its accuracy or completeness. All estimates, expressions of opinion, and other subjective judgments contained herein are as of the date
of this document and are subject to change without notice.

Recipients should conduct their own investigations and due diligence. ASBL disclaims any responsibility for any loss or damage that may result from inadvertent errors in
the information contained in this report. Past performance should not be relied upon as a guide for future performance; future returns are not guaranteed, and the
possibility of loss of capital exists.

Ashika Stock Broking Limited (ASBL) commenced its operations in 1994 and is currently a trading and clearing member of various prominent stock exchanges, including
BSE Limited (BSE), National Stock Exchange of India Limited (NSE), Metropolitan Stock Exchange of India Limited (MSEI), National Commodity and Derivative Exchange
(NCDEX), and Multi Commodity Exchange (MCX). ASBL is dedicated to offering a comprehensive range of services to its esteemed clients, encompassing broking services,
depository services (both CDSL and NSDL), and the distribution of financial products such as mutual funds, IPOs, and bonds.

Recognized as a "Research Entity" under SEBI (Research Analyst) Regulations 2014 since 2015 (Registration No. INH000000206), ASBL operates as a wholly-owned
subsidiary of Ashika Global Securities (P) Ltd., a non-deposit-taking NBFC company registered with the Reserve Bank of India (RBI). The broader Ashika Group, with detailed
information available on our website (www.ashikagroup.com), serves as an integrated financial service provider involved in diverse activities, including Investment Banking,
Corporate Lending, Debt Syndication, and other advisory services.

Over the past three years, ASBL has not faced any substantial or material disciplinary actions imposed by regulatory authorities. Nonetheless, routine inspections conducted
by SEBI, Exchanges, and Depositories have identified certain operational deviations. In response to these observations, advisory letters or minor penalties have been issued
by the relevant authorities.

Digitally signed by Dheeraj Ram

Dheeraj Ram
DN: cn=Dheeraj Ram, o=Ashika Stock
Broking, ou=Institutional Equity Research,
email=tddheeraj@ashikagroup, c=IN
Date: 2025.01.03 12:42:54 +05'30'

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Jash Engineering | Initiating Coverage

Disclosure
ASBL prepares and distributes research reports solely in its capacity as a Research Analyst under SEBI (Research Analyst) Regulations 2014. The disclosures and disclaimer
provided herein are integral components of all research reports being disseminated.

1) ASBL, its associates*, and its Research Analysts (including their relatives) may hold a financial interest in the subject company(ies). This financial interest extends
beyond merely having an open stock market position and may include acting as an advisor to, or having a loan transaction with, the subject company(ies), in
addition to being registered as clients.

2) ASBL and its Research Analysts (including their relatives) do not possess any actual or beneficial ownership of 1% or more of securities in the subject
company(ies) at the conclusion of the month immediately preceding the publication date of the source research report or the date of the relevant public
appearance. Nevertheless, it is noted that associates of ASBL may hold actual or beneficial ownership of 1% or more of securities in the subject company(ies).

3) ASBL and its Research Analysts (including their relatives) do not possess any other material conflict of interest at the time of publishing the source research
report or the date of the relevant public appearance. It is important to note, however, that associates of ASBL may have an actual or potential conflict of interest,
distinct from ownership considerations.

4) ASBL or its associates may have received compensation for investment banking, merchant banking, and brokerage services, from the subject companies within
the preceding 12 months. However, it is important to clarify that neither ASBL, its associates, nor its Research Analysts (who are part of the Research Desk) have
received any compensation or other benefits from the subject companies or third parties in relation to the specific research report or research recommendation.
Furthermore, Research Analysts have not received any compensation from the companies mentioned in the research report or recommendation over the past
twelve months.

5) The subject companies featured in the research report or recommendation may be a current client of ASBL or may have been a client within the twelve months
preceding the date of the relevant public appearance, particularly for investment banking, merchant banking, or brokerage services.

6) ASBL or its Research Analysts have not been involved in managing or co-managing public offerings of securities for the subject company(ies) within the past
twelve months. However, it is worth noting that associates of ASBL may have managed or co-managed public offerings of securities for the subject company(ies)
in the past twelve months.

7) Research Analysts have not held positions as officers, directors, or employees of the companies mentioned in the report or recommendation.

8) Neither ASBL nor its Research Analysts have been engaged in market making activity for the companies mentioned in the report / recommendation.

Details of Associates
Sl No Name CIN/ LLPIN Registration Number
1 Ashika Credit Capital Ltd L67120WB1994PLC062159 RBI registered NBFC bearing Registration No 5.2892
2 Ashika Capital Ltd U30009WB2000PLC091674 Merchant Banker bearing Registration No INM000010536
3 Ashika Stock Broking (IFSC) Pvt Ltd U65929GJ2016PTC094597 Stock Broker with NSE IFSC & India INX bearing Registration No -
INZ000099630
4 Ashika Business Pvt Ltd U45100WB2004PTC098055 NA
5 Ashika Properties Pvt Ltd U70101WB2005PTC102582 NA
6 Ashika Global Securities Pvt Ltd U65929WB1995PTC069046 RBI registered NBFC bearing Registration No - B.05.00008
7 Ashika Logistics Pvt Ltd U67200WB2004PTC098054 NA
8 Ashika Global Finance Pvt Ltd U01132WB1994PTC066087 RBI registered NBFC bearing Registration No - B-05.5583
9 Ashika Entercon Pvt Ltd U70103WB2017PTC220511 NA
10 Ashika Wealth Management Pvt Ltd U65999WB2018PTC227019 NA
11 Ashika Investment Managers Pvt Ltd U65929MH2017PTC297291 Investment Manger to Ashika Alternative Investments, a Category III AIF
bearing Registration No - IN/AIF3/20-21/0811
12 Ashika Commodities & Derivatives Pvt Ltd U51909WB2003PTC096985 NA
13 Puja Sales Promotion Pvt Ltd U51109WB1993PTC059596 NA
14 Dhara Dealers Pvt Ltd U52190WB2011PTC169226 NA
15 Yaduka Financial Services Ltd U51109WB2007PLC117012 RBI registered NBFC bearing Registration No - N.05.06760
16 Ashika Minerals India LLP AAR-7627 NA
17 Ashika Vyapaar LLP AAE-3310 NA
18 Ashika Ventures LLP (formerly known as AAO-9947 NA
Ashika Rise Realty LLP)

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