Jyoti Resins and Adhesives Share Price Target 2023, 2024, 2025, 2030  | Share Price Prediction of Jyoti Resins and Adhesives.

Jyoti Resins and Adhesives share price target

Is it right time to invest in Jyoti Resins? Will it’s share price rise from this point or fall further? How much gain should I expect from this point?

Let us answer these questions by simply calculating the share price targets Jyoti Resins could achieve in future.

Jyoti Resins and Adhesives Buy Range:- Rs. 700-800       Target:- Rs. 9000 by 2030

YearShare price (Bear Case)Share Price (Base Case)Share Price (Bull Case)
2022364455728
20235026281005
20246938671386
202595711961913
2026132016502640
2027182222773644
2028251431435028
2029346943376939
2030478859859576
Jyoti Resins and Adhesives Share Price Target
graph showing Jyoti Resins and Adhesives share price target
Jyoti Resins and Adhesives Share Price Graph

Jyoti Resins And Adhesives Share Price Today

Calculating Jyoti Resins and Adhesives Share Price Target

In this article, we will try to predict the future of Jyoti Resins and Adhesives using its historical data. By using the historic performance, we will try to calculate the sales this company can make in the future. These sales will help us calculate the Profits it will make and then we can calculate its Market Capitalization it can reach and thereby calculating its share price.

Therefore, to calculate the share price we need to calculate the:-

  1. Predicted Sales – To calculate Predicted sales we need the growth rate by which the sales are growing over the years. So we need to assume sales growth with which the sales will grow in the future.
  2. Predicted Profits – To calculate Predicted Profits we need to have Net Profit Margin also called PAT Margin.
  3. Market Capitalization – To calculate Market Capitalization we need PE the market is going to give the company at any point in time.
  4. Share Price – For calculating the Share Price we need No. of shares of the company.

Assumed Sales Growth

  • We need to assume a growth rate with which the sales will grow in future so as to calculate Future Sales.
  • Jyoti Resins and Adhesives has shown a consistent sales growth rate of 38% for the past 10 years.
  • Let’s assume that the company continues to keep increasing its sales by 38% for further years.
  • The company has a lot of growth potential as it has the scope to penetrate existing states and foray into new states.
  • The company has increased its production capacity, which shows that the company is ready for upcoming increased demand.
  • Assumed Sales Growth = 38%

Net Profit Margin

  • We need to calculate Net Profit Margin or PAT Margin using existing data.
  • Net Profit Margins are required to calculate Future Profits.
Mar-18Mar-19Mar-20Mar-21Mar-22TTM
Sales546974101182254
Net Profit128122037
Net Profit Margin2311121115
Calculating Net Profit / PAT Margins
  • Net Profit Margin = (Net Profit X 100) / Sales
  • Here we can see that there is a lot of difference in the Net Profit Margins. After a point when sales have grown more than 70 Cr. the Net Profit Margins increased considerably and keep growing thereafter.
  • This happens in most production line businesses. Production in bulk will always have higher margins.
  • Average here comes out to be 9, but let us assume that the margins will be at least 12%. We are sure that Net Profit Margins will be more than 15% in coming years but being conservative, Let’s assume NP Margin as 12.
  • Net Profit Margin/ PAT Margin = 12%.

PE

  • Share Price of a company is dependent on the growth of a company but it is also dependent a lot on market sentiments. Sometimes even loss making companies have very high share price and sometimes great companies are available at cheaper valuations.
  • These sentiments of a company can be measured by its PE. High PE means the market is bullish and lower PE means the market is bearish about that company and donot trust its growth story.
  • Over the past years the PE of Jyoti Resins and Adhesives has been between 6 to 96. Median PE being 25.
  1. Base Case – When the market is behaving in a neutral way i.e. neither bearish nor bullish that is called the base case. Let’s assume that in the base case the market will give it a median PE i.e. 25.
  2. Bear Case – Let’s suppose some bad news about the company circulates in the market or due to some or the other reasons market sentiments go down, then the market will start giving the company a lower PE. Looking at the historic data let’s assume PE at that time is 20.
  3. Bull Case – Whenever the market becomes positive about the company, it starts giving it a higher PE and let’s assume it to be 40 ( very conservatively ).

             Base Case – 25

             Bear Case – 20

             Bull Case –  40

Number of Shares

The company has 1.2 Cr. of shares.

Calculating Jyoti Resins and Adhesives Projected Sales and Net Profit

  • Let us calculate Sales Jyoti Resins and Adhesives can make in coming years using assumed sales growth we have taken earlier.
  • Projected Sales (Next Year)= Sales Current Year + X% of Sales Current Year,         where X= Assumed Sales Growth.

Eg:-  Projected Sales 2023 = Sales 2022 + 38% Sales 2022.

  • Now that we have calculated future sales, let’s calculate Future Net Profits using Net Profit Margins we calculated earlier.
  • Projected Profit = Projected Sales X Net Profit Margin
YearProjected Sales ( In Cr.)Projected Net Profit ( In Cr.)
202218222
202325130
202434742
202547857
202666079
2027911109
20281257151
20291735208
20302394287
Calculating Projected Sales and Projected Net Profit of Jyoti Resins and Adhesives
Graph showing projected sales and net profits of  Jyoti Resins and Adhesives
Jyoti Resins and Adhesives
  • Historical data can be fetched from www.screener.com

Jyoti Resins and Adhesives Share Price Target Base Case

  • With same profit and loss , a company can have its share price going up and down.
  • In Base case we take PE as median PE and calculate Market Capitalization.
  • Market Capitalization = Future Profit X Base PE.
  • Share Price = Mcap / No. of Shares
YearPE (base case)Mcap ( Base Case) ( In Cr.)Share price (Base Case)
202225546455
202325753628
2024251040867
20252514351196
20262519801650
20272527332277
20282537713143
20292552044337
20302571825985
Jyoti Resins and Adhesives Share Price Target Base Case

Jyoti Resins and Adhesives Share Price Target Bear Case

Read:- Nippon India Share Price Target

  • When ever there are rumors or bad news in the market it goes into bear phase giving a lower PE to its stock.
  • Jyoti Resins and adhesives has been given a lowest PE of 6 by the market in extreme case. 
  • Since the company has shown a consistent growth in its sales and is able to maintain a healthy balance sheet for ten years, let’s assume the market will give it a PE of 20 in bear case.
YearPE (Bear Case)Mcap (Bear Case) ( In Cr.)Share Price (Bear Case)
202220437364
202320603502
202420832693
2025201148957
20262015841320
20272021861822
20282030172514
20292041633469
20302057454788
Jyoti Resins and Adhesives Share Price Target Bear Case

Jyoti Resins and Adhesives Share Price Target Bull Case

Read: Tata Elxsi Share Price Target

  • Although Jyoti Resins and Adhesives has been given the highest PE of 96, but that is in extreme case.
  • Being conservative , we will take PE in bull case as 40. 40 PE seems more practical.
YearPE (Bull Case)Mcap (Bull Case) ( In Cr.)Share Price (Bull Case)
202240874728
20234012061005
20244016641386
20254022961913
20264031682640
20274043723644
20284060345028
20294083276939
203040114919576
Jyoti Resins and Adhesives Share Price Target Bull Case

Jyoti Resins and Adhesives Share Price Target 2023

Read : JK Paper Share Price Target

YearShare price (Bear Case)Share Price (Base Case)Share Price (Bull Case)
20235026281005
Jyoti Resins and Adhesives Share Price Target 2023
  • Although we project Net profit as 30 Cr. but Jyoti Resins and Adhesives have already posted 37 cr. in TTM and the share price is ranging from 1055 to 1355.
  • This is because TTM sales growth is 58% and Net Profit margin is 15% and we have assumed the two as 38% and 12%. So calculation varies.
  • We have taken all assumptions very conservatively and we know that the company will perform much better.

Jyoti Resins and Adhesives Share Price Target 2024

Read:- Indigo Paints Share Price Target

YearShare price (Bear Case)Share Price (Base Case)Share Price (Bull Case)
20246938671386
Jyoti Resins and Adhesives Share Price Target 2024
  • The company has been able to maintain a ROCE of more than 40% since 2018.
  • The company is totally debt free and is growing without taking any sort of debt.
  • Jyoti resins is the second-largest wood adhesive brand in the retail segment.
  • It imports raw materials from several countries and manufactures finish product in its plant in Santej.
  • There has been increase in sales and profits  every QoQ basis.

Jyoti Resins and Adhesives Share Price Target 2025

  • The company has shown increased sales and profits on YoY basis as well.
  • Reserves, fixed assets keep growing while borrowing is zero.
  • Cashflow is positive but need to be grown in accordance with net profit.
  • The company has increased its production capacity to cater increasing demand.
YearShare price (Bear Case)Share Price (Base Case)Share Price (Bull Case)
202595711961913
Jyoti Resins and Adhesives Share Price Target 2025

Jyoti Resins and Adhesives Share Price Target 2030

  • Jyoti Resins and Adhesives is targeting to penetrate more in various states to increase its demand.
  • It has its unique policy where they give rewards to carpenters for their loyalty – Carpenter Reward Model System.
  • It has a competitive edge in low-cost manufacturing, a robust distribution network, and a diversified product portfolio where they are manufacturing anti-termite, waterproof, fungal resistant, fast drying, etc. substrates.
YearShare price (Bear Case)Share Price (Base Case)Share Price (Bull Case)
2030478859859576
Jyoti Resins and Adhesives Share Price Target 2030

Conclusion

  • Jyoti Resins and Adhesives is a potential small cap company which has a lot of growth potential.
  • It is trying to increase its capital share through its unique reward policy and training of customers.
  • It can be bought at levels of around Rs. 800 and kept for long term.
  • Promoters are constantly increasing their stakes which proves they have faith in their business model.
  • FIIs and DIIs are not into this company right now.
  • Keeping an eye on this company and buying it at cheaper valuations can be a good investment idea.
Technical chart of Jyoti Resins and Adhesives
Jyoti Resins and Adhesives Technical Chart
YearShare price (Bear Case)Share Price (Base Case)Share Price (Bull Case)
2022364455728
20235026281005
20246938671386
202595711961913
2026132016502640
2027182222773644
2028251431435028
2029346943376939
2030478859859576
Jyoti Resins and Adhesives Share Price Target

Is Jyoti Resins and Adhesives a good buy ?

Jyoti Resins and adhesives have strong financials and a lot of growth potential. Look for valuations before buying. A range of Rs. 800 seems good or when it is trading at PE of 20.

What is the future of Jyoti Resins and Adhesives?

Jyoti Resins and adhesive has managed to emerge as second largest player is wood adhesives. It is growing its sales by increasing its penetration. Its CAGR sales has been 38% for last 10 years.
It has robust distribution network, diversified portfolio of products and reward model which is helping it grow more.

Indigo Paints,

Lux Industries,

Vaibhav Global.

Zerodha

Use the link to open a Demat account in Zerodha.

Disclaimer- All investments and trading in the stock market involve risk. Any decision to place a trade in the financial markets, including trading in stock should only be made after thorough research. Trading strategies or related information mentioned in the article is for informational purposes only. Use your due diligence before investing. These are just predictions. They may or may not be true.

2 thoughts on “Jyoti Resins and Adhesives Share Price Target 2023, 2024, 2025, 2030  | Share Price Prediction of Jyoti Resins and Adhesives.”

  1. Very systematic approach.
    Keep on releasing such good report so as the small investors get confidence and hold such script .
    Thank you very much and good wishes to you and your team .

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