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Tuesday, July 22, 2014

Jayant Agro Organics: 676 shareholders hold 92.91% shares

The more you discover Jayant Agro the more intriguing it get.

I was looking at the shareholder data given in 2013 Annual report

if we look at the no of shareholders and % shareholding..
104 people hold 82.43% stake.. so it is a close knit of investors..

if you consider all investors holding 1001 share or more.. 676 shareholders hold 92.91% stake in Jayant Agro which indicates how concentrated is the shareholding for jayant agro..

NO significant holdings of FII, DII or any institutional investors..

Now Jayant Agro Organics is the largest processor of castor oil and castor oil derivatives in India. with India producing 80-85% of worlds castor oil production.. Jayant is the largest player in the world in castor oil and castor oil derivatives business..

a 1001 share purchased in Jayant gets you in the top 676 investors who control 92.91% stake in Jayant
10,001 shares purchased in Jayant agro gets you in the elite group of 104 investors who hold 82.43% stake in Jayant.
Jayant Agro Organics
CMP: 128
MCap: 190cr
ROCE: 19.45%, ROE: 22.61%
3yrs CAGR Sales: 21.49%
3 yrs CAGR inNet Profits: 43.88%
PE: 4.83 (March 2014)
EV to Sales: 0.30
EV to EBIDTA: 4.96
7 yrs 588% increase in profits and 335% increase in sales
Consolidated Sales/NP/dividend numbers.
March 2007 Sales 462.49Cr Net Profit: 6.76Cr Div:1.25
March 2008 Sales 605.96Cr Net Profit: 9.51Cr Div:1.25
March 2009 Sales 875.86Cr Net Profit 7.49Cr Div: 1.25
March 2010 Sales 904.01Cr Net Profit: 12.47Cr Div:1.50
March 2011 Sales 1,175.26Cr Net Profit: 24.92Cr Div 1.75
March 2012 Sales 1,832.26Cr Net Profit: 31.35Cr Div: 2.00
March 2013 Sales 1,624Cr Net Profit: 36.24Cr Div: 2.25
March 2014 Sales 1,550Cr NProfit: 39.75cr Div: 3/=

Jayant agro stock price has in past 7yrs(April 1,2007)  has increased 119% while earnings have increased 588% ..
5yrs  compounded annual growth rate in profits is: 32.51% and
5 yrs compounded annual growth rate in sales is: 21.46%
5 yrs Return on Equity is: 19.99%

Conclusion: Jayant stock is undervalued by a mile.. such high growth rate companies should command PE of 
(Growth + 8) = 21.46+8 =  PE of 29.46. worlds largest processor of castor in country that produces 80% of castor with great return on capital employed..consistent dividend payout since inception for more than 20+ yrs...Only 676 shareholders hold 92.91% shares.. long term investors can expect PE and sales growth to deliver long term (3yrs) price target of atleast 1000/=  per share... ie Mcap of: 1500cr. Must buy!!

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