During Tuesday’s trading session, the shares of a manufacturer of CRGO Silicon Steel Cores for the Power & Distribution Transformer Industry of India surged nearly 5.3 percent to hit an intraday high at Rs. 389 on NSE.
Stock Performance:
With a market cap of Rs. 812.4 crores, the shares of Jay Bee Laminations Limited opened in the green at Rs. 374, up by nearly 1.2 percent, as against its previous closing price of Rs. 369.5.
Jay Bee Laminations was listed on the NSE in September 2024 and has since delivered around 31.3 percent of positive returns.
Future Outlook:
As of Q2 FY25, Jay Bee Laminations has an installed capacity of ~11,700 MTPA, with an additional capacity of ~6,300 MTPA expected to be added at the Greater Noida Plant by H2 FY25.
Currently, the company serves the transformers market up to 220 KV, with plans to tap a new market segment of Power transformers, including 400 kV and 765 kV class, by H2 FY25.
This strategic move is aimed at capitalising on the limited supply of consistent suppliers in these higher voltage transformer segments, offering a significant opportunity to increase production volumes.
With the increased capacity, the company intends to introduce higher value-added products to its product portfolio, further increasing its share in overall revenue.
Additionally, Jay Bee Laminations plans to expand its sales presence in international markets, including the US and Europe, while increasing its sales networks in Africa and Asia.
The company is also set to install lab equipment received from Germany by H2 FY25 and aims to achieve NABL accreditation, which will lead to reduced dependency on third-party testing thereby reducing supply lead time.
In line with its expansion plans, Jay Bee Laminations has entered into a
lease agreement for a 3,662.97 sq. meter property in Noida, Gautam Buddha Nagar, to establish a new manufacturing facility, referred to as Unit-III, to support future expansion, growth, and new projects.
This expansion of the facility will support future growth and new projects, as the existing units are expected to operate near full capacity by FY26. Unit-III is projected to begin commercial operations in H2 FY26.
Additionally, the company is targeting a 30% volume CAGR for the next three years.
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Current Capex:
The company has invested ~Rs. 12 crore in capex during H1 FY25 at its Greater Noida facility. This investment will result in a capacity increase of 6,300 MTPA in H2 FY25, enabling the company to enter the 400 kV and 765 kV transformer segments.
This expansion presents an opportunity for margin growth, as there are currently very few players in this new segment.
Financials:
Jay Bee Laminations reported a marginal decline in the revenue from operations, experiencing a year-on-year decrease of nearly 0.71 percent, falling from Rs. 154.2 crores in H1 FY24 to Rs. 153.2 crores in H1 FY25.
In contrast, the company’s net profit increased by 49 percent YoY from Rs. 9.7 crores to Rs. 14.4 crores, over the same period.
EBITDA for H1 FY25 increased by 52 percent YoY to Rs. 23 crores, up from Rs. 15 crores in H1 FY24, with the EBITDA margin rising by 519.87 bps, from 9.77 percent to 14.97 percent, at the same timeframe.
Key Financial Ratios:
In terms of key financial metrics, Jay Bee Laminations currently has a Return on Equity (RoE) of 36.4 percent and a return on capital employed (RoCE) of 39.6 percent. Additionally, the company’s debt-to-equity ratio stands at 0.18.
Shareholding Pattern:
As per the September 2024 shareholding pattern, the Promoters hold a 70.61 percent stake in the company, Foreign Institutional Investors (FII) hold a 3.74 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 21.26 percent and 4.39 percent stake in Jay Bee Laminations, respectively.
About the company:
Incorporated in 1988, Jay Bee Laminations Limited is primarily engaged in the business of manufacturing of CRGO silicon Electrical steel stamping/parts of transformers.
In 2015, the company surpassed an annual revenue of Rs. 100 crores, and by 2023, it exceeded Rs. 200 crores in annual revenue, converting from a Private Limited to a Public Limited company.
In 2024, Jay Bee Laminations achieved several milestones, including its listing on the NSE in September, the completion of capacity expansion at its Greater Noida facility in October, and the signing of a lease agreement for the new Greenfield Unit (Unit III).
Written by Shivani Singh
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