Target: ₹565
CMP: ₹447.70
We met the management of Jash Engineering and below are the key takeaways:
India business: Revenue (domestic) grew 18 per cent y-o-y in FY26, with management guiding for 18–20 per cent y-o-y growth in FY27. Core categories market share exceeded 70 per cent, with company seeing a good traction from major cities in India including Mumbai where in recent quarters they supplied in over 28 projects out of total 30.
Management expects road infrastructure capex to moderate post-FY28 following completion of major Vande Bharat investments, with water infrastructure emerging as the next key growth driver. A long term opportunity exists in wastewater-to-potable-water reuse, where the company has already executed pilot projects in Singapore. While JJM largely addresses mass-market demand, Jash remains focused on high-engineering, customised solutions.
Capacity remains adequate, supported by 2 new plants commissioned during the year and Unit 1 expansion scheduled for completion by Jun’26, taking revenue potential to ₹1,200 crore. The Singapore order book stands at about ₹100 crore.
Near-term tariff-related uncertainty may create volatility; however, management’s claim of competitiveness at a 50 per cent tariff level appears supported by India’s structural cost advantage. Over the medium term, the Houston and Saudi facilities, involving combined capex of $3 million, could materially expand revenue potential toward ₹1,500 crore by FY29-30, while the UK business continues to gain traction.