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Friday, May 20, 2011

Jayant Agro Organics: March 2011 Quarterly Results and Annual Results

Jayant Agro has reported its Quarterly results on May 14,2011
CMP: 88
Market Cap: 132Cr

Jayant has reported on a consolidated basis:

Year ending March 2011:
1. - Sales: 1171.99Cr (Year 2010: 905.67Cr) Growth of: 29.40%
2. - PBDIT (Profit Before Depreciation Interest and Taxes): 63.45Cr (Year 2010 : 41.32Cr) Growth of  53.55%
A higher PBDIT growth number over growth in Sales clearly indicates that there has been an expansion in margins. (2011: 5.41% 2010: 4.70%)
3. - Net Profit: 24.57Cr (Year 2010: 12.4Cr) Growth of 98.14% 
A Higher Net Profit growth percentage than PBDIT growth indicates there has been a reduction in Depreciation, interest or tax expenses and we can clearly see Depreciation (2011: 0.46% Vs 2010: 0.52%) and Taxes (2011: 0.91% Vs 2010: 1.17%) have contributed to increase in Net Profit.

EPS number for Jayant agro: 
2011: Rs 16.38 (Face Value: 5)
2010: Rs 8.31 (Face Value: 5)

Company has grown Topline by 30% and Bottom line by 98.14% due to margin expansion and somewhat by reduction in taxes and depreciation. Please Note these are "Consolidated" numbers and most of the market data reviewed by analyst is on "Standalone" numbers.

Conclusion: The time is near for Jayant Agro Organics stock price to reflect the increase in fundamentals. 
- Year ending March 2008 Net Profit: 9.51Cr
- Year ending March 2009 Net Profit: 7.49Cr
- Year ending March 2010 Net Profit: 12.63Cr
- Year ending March 2011 Net Profit: 24.57Cr

From 2008 to 2010 in last 3 years Jayant agro has earned 29.63Cr in March 2011 Jayant Agro has earned 24.57Cr. Almost equal to earning for last 3 years!! in 1 Year!!
So Year ending March 2011 Jayant has done exceptionally well. It is but a matter of time before the stock reflects the earnings growth. This is an opportunity for investors to pile on cause the stock is ready to rock. (Psst: Stock seems to remain low till 1st half of the year and does much better in the latter half (link)
- Promoters have also spoken about bonus in the future (link)


Anonymous said...

prahalad ji, Thanks for your result update. As per Ashish Chaugh in his recamentation he told derivative plant is already operational. But I read somewhere you mentioned it is not operational. kindly clarify this matter.Thanks

What'sUp Prahalad said...


1. The plant is ready and producing derivatives..

But it is not yet in "continuous production".

Basically they are producing "batches" of "Sebacic Acid" and its derivatives but since the fine tuning is not completed its not a continuous manufacturing process its "Batch" (hence quantity of production and quality of production will vary..)

Jayant Agro is selling the products and is depreciating its plant value .. but not declaring it operational.. (maybe its something to do with accounting )

- Also the Financial year for the derivatives Plant has been changed to Jan to Dec instead from April to March(For jayant Agro).

This would align financial reporting with Global Companies (read Mitsui) so looks like things are starting to Pick up..

May be the JV will be sold off.. (Its plain speculation on my part I must state..)

All said and Done: "Buy Jayant Agro" at current prices as the current market downturn is an opportunity to collect it "Dirt Cheap"

=happy investing