JBF Industries Ltd. is one of the leading names in the Indian Polyester Industry. The Company manufactures Polyester chip.The company manufactures a wide range of products like Polyester chips, bottle grade chips, partially oriented yarn, fully drawn yarn and polyester textured yarn. The Company was established in 1982, by Mr. Bhagirath Arya as a Yarn Texturizing company. JBF became a public limited company in the year 1986.
The company is undergoing vertical backward Integration, so as to produce PTA (Purified Terephthalic Acid). This will ensure a steady flow of raw material supply, for the manufacturing of the chips in the plant. This move will also help the company, benefit from lower raw material and freight costs, along with lesser working capital requirement thus making the company’s product much more competitive and would help it improving the operating profit as well.
Mar ’12 |
Mar ’11 |
Mar ’10 |
|
Investment Valuation Ratios |
|||
Face Value |
10 |
10 |
10 |
Dividend Per Share |
8 |
8 |
6 |
Operating Profit Per Share (Rs) |
14.8 |
58.07 |
42.81 |
Net Operating Profit Per Share (Rs) |
608.33 |
495.86 |
431.19 |
Profitability Ratios |
|||
Operating Profit Margin(%) |
2.43 |
11.71 |
9.92 |
Profit Before Interest And Tax Margin(%) |
0.5 |
9.6 |
7.53 |
Gross Profit Margin(%) |
0.51 |
9.64 |
7.61 |
Net Profit Margin(%) |
1.07 |
3.68 |
4.76 |
Liquidity And Solvency Ratios |
|||
Current Ratio |
1.86 |
0.92 |
0.94 |
Quick Ratio |
1.41 |
0.8 |
0.74 |
Debt Equity Ratio |
1.59 |
1.24 |
1.13 |
Long Term Debt Equity Ratio |
1.59 |
0.82 |
0.89 |
Management Efficiency Ratios |
|||
Inventory Turnover Ratio |
10.42 |
7.63 |
8.5 |
Book Value |
126.66 |
129.09 |
117.49 |
MARKET CAP (RS CR) | EPS (TTM) |
940.36 | 8.59 |
P/E | INDUSTRY P/E |
15.08 | 17.26 |
BOOK VALUE (RS) | PRICE/BOOK |
125.74 | 1.03 |
DIV (%) | DIV YIELD.(%) |
80.00% | 6.18% |
The Current market price has strong upside. Applying the discounted cash flow method to value JBF, we see that the current market price of the company has a strong position to reach the levels of around 200.
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