Jiya Eco-Products Ltd. - Step Towards Green World

Jiya Eco Products :
Since the formation of company in 2011 , there has been continuous equity dilution.
The Operating cash flows are negative for every year.
Receivables to Sales is at 60% , On a TTM profit of around 20 Cr , 4 Cr receivables are of more than 6 Months.
Jiya

  • Promoters stakes were around 63.9% in September 2017.
  • Promoters sold some shares and stakes were down to 63.63% in March 2018.
  • Promoters issued warrants to general Public (About 45% of then total equity share capital). Some warrants got converted into Equity for public and their stakes went down to 57.44 as on June 2018.
  • More warrants were converted to equity share as well as promoters sold shares and their holdings went down to 47% as on September 2018.
  • More warrants were exercised and bonus was issued. Promoters did not sell any shares but their holdings came down to 42.36% due to warrants conversion as till December 2018.
  • Promoters have sold 0.9% more Shares in February.
    If the remaining warrants gets converted , the promoters holding will come down to 40.33 by March 2019 if no further selling is done by them.

I was wondering that if the business was so good , why promoters are keep on selling their stakes despite the shares being undervalued. In latest call , found out that the Promoter which is selling is no longer a promoter and thus he will sell his holdings.He still holds 2.5% and possible that the promoter holding will go down more. Though , the reason sounds funny.

Jiya%201

On asking for future guidance , the reply look funny to me.
Jiya%202

They have issued bonuses 2 times in last 3 years. I have been critical of many companies which do that. Have seen what happened in Vakrangee , PCJ , Manpasand after bonus , have seen Sanwaria issuing bonuses on regular intervals for no reason.

Their old auditors has resigned twice in past and new auditor M/S Phillip Fernandes does not seem to have any other clients.

Promoters have formed a company Jiya Eco India Ltd (JEIL) in fiscal 2017 and acquired it through listed company in fiscal 2018. Anyone having any details of this transaction ?

Disc: Watching the developments from a long distance.

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Thanks . I am chitresh lunawat whose asked question on the receivable…

snippet from concall

For Working Capital:
"In working capital cycle; compared to our last year’s debtor days were 240 days, we have
successfully managed it to bring it down to ~145 days this year. Our incremental debtor days,
this financial year is ~80 days. "
Promoter selling
As they have already clarified Mr hashad want to come out of the company. So today also there was some 2 lakhs shares sold by him. Now he is left with 5 Lakh more shares. Hopefully he would sell it completely this week.
Related party transaction
jiyaRelated

Jiya Eco-Product insider trade: Disposal of 202,020 equity shares worth Rs 69.25 lacs by promoter

Is anyone aware about the currently holding of my harshad… Is he still selling in market? According to company disclosure he has sold 3 lakh more shares

how does one find this out?

Harshad has given up his directorship formally

you can find out these info by adding companies in " add to watchlist" in screener.in

and you can also check these in BSE site as well

Is anybody aware of the status of the new plant at Gandhidham? When is it likely to start operations?

any news that led to today’s price movement (+12.68%)?
is there any way to know from the delivery percentage if this is some pump and dump?
this is the delivery percentage that I got from the BSE site-
DATE|SCRIP CODE|DELIVERY QTY|DELIVERY VAL|DAY’S VOLUME|DAY’S TURNOVER|DELV. PER.
19032019|539225|000252680|0000000014592270|000875648|0000000049497817|028.86
P.S- I am a newbie

By this month end it should start, as commented by the management in the concall

https://www.bseindia.com/markets/equity/EQReports/GrossShortPos.aspx?flag=0

The attached link to the BSE website should give you the delivery marking of individual stocks.

Usually, a strong stock closing marked by high delivery percentage is considered to indicate stronger stock price going ahead. However, this cant be strictly relied upon. A history (of mebbe last 3 months) of absolute quantities marked for delivery should also be considered, while trying to infer anything from this data point.

For instance, in the case of Jiya Eco Products, the average daily shares marked for delivery (since jan 1st 2019) was ~92,000. Now, in comparison to this, yesterday >2,50,000 shares got marked for delivery - which is a healthy indicator.

These are mere indicators open to individual perception and reading. Decisions to invest or not in a stock should solely based on fundamental understanding of the business and valuations of the stock one intends investing into.

Trust that helps.

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What’s going on!? it opened at upper circuit (+20%), touched lower circuit(-20%) and then close almost flat today followed by a circular saying that they are not a “Large Entity”. Does anyone know what’s happening?

Manipulation.
Since last many days some brokerage house was giving 109 target.

People were recommending Jiya Eco in all Moneycontrol forums (even other stock forums)

Looks like someone big cashed out very nicely.

These type of things keep coming in Indian markets… I witnessed this on Ujaas Energy a year or two back…

Company suddenly gets lot of attention and someone cashes out … Don’t be disheartened to see promoter stake going down (if it happens at all) . Infact I checked and found it visible on March SHP as well

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Does anybody know when results are coming?

Results Out!: https://www.bseindia.com/xml-data/corpfiling/AttachLive/59a54af1-eed2-40bd-a775-977c51eb62e6.pdf

100% growth in Top line and bottom line.
Receivable cycle remains the same which is contrary to what was said during con calls.
Debt has doubled

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I was just checking the company’s website and found this. It seems their Products page has been hacked.

https://www.jiyaeco.com/products.php

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Anyboby have con call recording?
or transcript please post

An explainer video, recently uploaded on the company’s website, details the business model of the company. This should be helpful to those who are new to the company.

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I visited the webpage last evening…didnt find this! Guess they have the issue sorted by now.

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Q4FY19 concall takeaways uploaded in the link hereunder

Q4FY19 conference call takeaways
While, revenue growth and other metrics are largely in line with expectations, 2 key parameters (control in receivable days and commencement of Gandhidham facility) have witnessed delays. Commencing the, high margin and quick receipt, retail business is extremely crucial for better operations. While the management has been attributing the delay in commencement of the Gandhidham facility to factors beyond their control, the lack of any significant improvement in the working capital scenario of their existing business is slightly disappointing. Valuations, undoubtedly, are relatively attractive (on a PEG basis), but is probably justified by their high debtor days and -ve free cash from operations. The stock has substantially appreciated (with superior volumes) over the last 6 months, indicating significant retail attention that the stock has managed to attract over the period. We intend keeping a close watch on the developments in these 2 crucial areas, over the next few months, to reassess our opinion.

Cheers!!!
Sudhir

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