Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on August 26, 2025
The company is engaged in the manufacturing and marketing of material handling and engineered products.
• It posted growth in its top and bottom lines for the reported periods.
• It has a very tiny equity capital and hence marks thin volume.
• Based on its recent financial data, RI appears fully priced.
• RI is at a discount of around 15.5% on the basis of its last traded price.
• Well-informed investors may park funds for medium to long term.
ABOUT COMPANY:
Josts Engineering Co. Ltd. (JECL) is involved in the business of supply of a wide range of material handling and engineered products. These products are designed to support the movement, lifting, storage, and transportation of goods within industrial, warehouse, and commercial environments. It aims to provide practical and reliable solutions that help improve efficiency and productivity in various operational settings. To serve its customers better, the company has established an all-India sales and service network. This network enables it to reach customers across the country and offer assistance in terms of product information, after-sales service, technical assistance, and the supplying spare parts.
JECL’s focus is not just on supply of equipment, but also on offering complete solutions that add value to the customers’ operations. The products it offers are marketed under well-recognized brand names such as “JUMBO,” “PYGMY,” and “JOTRUK.” These brands have built a strong reputation over time and are known for their quality, durability, and consistent performance. Its product range consists of Industrial Platform Trucks, Tow Trucks, Hand Pallet Trucks, Electric Pallet Trucks, Electric Pallet Stackers, Reach Trucks, Forklifts, Racking Systems, Scissor Lifts, Dock Levelers, Pneumatic Sample Transport Systems, Battery Operated Passenger Carriers and various other customized products.
Through its diverse product offerings and service support, the company continues to focus on customer satisfaction, safety, and operational efficiency. Its aim is to build long-term relationships with customers by offering dependable products and solutions tailored to their day-to-day working needs. Also, the Company has diversified its business by entering into equipment rental business and renewable energy sectors. The Company marked its entry into the rental business through its subsidiary namely MHE Rentals India Private Limited (Presently Wholly Owned Subsidiary). Through its joint venture, Suryavayu Renewable and Energy Solutions Pvt. Ltd., it has strengthened its renewable energy focus and expanded its portfolio in solar and wind power projects.
While the Company has recently discontinued their manufacturing side of business, it relies on wholly owned subsidiary, JECL Engineering Limited, who has a manufacturing facility, amongst many other suppliers for engineering goods. JECL Engineering Limited operates a dedicated manufacturing facility located in Murbad, Maharashtra. This facility is equipped with the necessary infrastructure, including an advanced plant, machinery, and equipment, to produce high-quality products. As of the date of this offer document, the company has 294 employees on its payroll.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 1847913 equity shares of Re.1 each at a fixed price of Rs. 270 per share to mobilize Rs. 49.89 cr. The RI opens for subscription on August 29, 2025, and will close on September 09, 2025. The company is offering RI in the ratio of 5 for 27 to its eligible stakeholders as of the record date of 1 for 5 as of the record date of August 20, 2025. The company is asking for full money on application for number of shares applied. Post allotment, RI shares will be listed on BSE. The company is spending Rs. 0.80 cr. for this RI process, and from the net proceeds, it will utilize Rs. 43.58 cr. for working capital, and Rs. 5.51 cr. for general corporate purposes.
The RI is self-managed by the company itself, and Bigshare Services Pvt. Ltd. is the registrar to the issue.
Post-RI, company’s current paid-up equity capital of Rs. 1.00 cr. will stand enhanced to Rs. 1.18 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 319.32 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last four fiscals, the company has posted total income / net profit of Rs. 124.60 cr. / Rs. 4.56 cr. (FY22), Rs. 172.99 cr. / Rs. 7.31 cr. (FY23), Rs. 188.21 cr. / Rs. 9.90 cr. (FY24), and Rs. 240.20 cr. / Rs. 17.54 cr. It marked degrowth in its top and bottom lines for the reported periods.
DIVIDEND POLICY:
The company has declared dividends amounting to Rs. 0.56 cr. (FY23), Rs. 0.70 cr. (FY24), and Rs. 0.98 cr. (FY25). It will continue to follow its existing dividend policy, based on its financial performance and future prospects.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 505750 (FV Re. 1).
The scrip last closed on cum-right basis at Rs. 409.00 on August 19, 2025, and opened on an ex-right basis at Rs. 375 on August 20, 2025. Since then, it has marked a high/low of Rs. 384.95 / Rs. 313.00. The scrip last closed at Rs. 319.65 as of August 26, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 661.95 / Rs. 313.00. Based on its last traded price of Rs. 319.65, the RI is at a discount of around 15.53%.
The promoters’ holding has been constant at 48.26% for the last three quarters ended with June 30, 2025. The counter is well managed above the RI price to lure investors.
Conclusion / Investment Strategy
JECL is engaged in the manufacturing and marketing of material handling and engineered products. It posted growth in its top and bottom lines for the reported periods. It has a very tiny equity capital and hence marks thin volume. Based on its recent financial data, RI appears fully priced. RI is at a discount of around 15.5% on the basis of its last traded price. Well-informed investors may park funds for medium to long term.
Review By Dilip Davda on August 26, 2025
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
Courtesy: https://www.chittorgarh.com/
