I have 60 shares of JBF Industries Limited purchased at ₹194. Should I sell it or hold it? - Chitra Devi
JBF Industries Limited is engaged in the manufacture of polyester chips, polyester yarn and processed yarn from polyester chips. The company operates in various segments, including polyester film and other polyester products. On the financial front, JBF Industries Limited’s revenue increased 3.96 per cent to ₹1060.54 crore in the first quarter of FY18 as compared to the same quarter of the previous fiscal.
The company’s PBIDT dropped 24.30 per cent to ₹48.60 crore in Q1FY18 as against ₹64.20 crore in Q1FY17. The company’s profit after tax declined by over 200 per cent to record a loss of ₹12.66 crore in the first quarter of FY18 as against a PAT of ₹9.83 crore in Q1FY17. On an annual basis, the company’s revenue increased by 8.41 per cent to ₹4271.45 crore in FY2017 as compared to the previous fiscal. The company’s PBIDT decreased 27.14 per cent to ₹253.25 crore in FY17 as against ₹347.58 crore in FY16. The profit after tax of the company also got reduced by 42.28 per cent to ₹35.63 crore in FY17 as compared to ₹61.73 crore in FY16. The company maintained its TTM PE at 111.28x, whereas its peers such as Banswara Syntex stood at 23.77x and Pasupati Acrylon at 11.74x. The industry’s TTM PE is at 19.44x. The stock is likely to go up. We recommend investors to HOLD the stock.