Shri Jagdamba Polymers Ltd

I liked this company - P/E ratio, Sales Growth, Growth in Profits, ROE, ROCE, and Market Segment, pretty much everything.

Key Ratios:
P/E : 9.76 ( Wow )
Sales Growth (3Yrs): 17.50 %
ROCE: 44.72 % ( Again Wow )

Narration Mar-14 Mar-15 Mar-16 Mar-17 Mar-18
Sales 89.19 110.40 122.13 146.88 179.09
Net profit 3.14 3.34 5.02 5.71 16.47
EPS 3.59 3.81 5.59 6.36 18.34
P/E 1.23 7.61 7.17 12.15 11.43
Price 4.40 29.00 40.10 77.27 209.72

ROE and ROCE - Above 20 % is usually hard to find, and that too in small cap.
Sales Growth - Above 15% over the last three years is also not easy to find, especially with the above combination of ROE and ROCE

How did I find this company ?
I read industry reports, and identify industries that has double digit growth potential for the next 3-5 years. Once industry is identified, I look at companies present in that industry. As per industry reports, there would be double digit growth in packaging industry, especially cardboard and flexible packaging. The cardboard packaging is done by multiple small players, and I could not find a niche player. One niche player is doing good, but their capex is quite high. In flexible packaging, there are few decent players, but their promoters were not trustworthy, IT raid and what not.

During my research, I come across Shri Jagdamba Polymers Ltd. Although it not pure packaging company, it belongs to technical textile segment which is expected to grow in double digits in India due to government support and large market. I thought that I found my diamond. There is not much trading on this stock, so I do not expect this stock to go through wild gyrations either.

There are three major issues.
a. R&D - To grow in technical textile, a company must spend funds in R&D, whereas Jagdamba did not spend in R&D. This point is OK, as they can ride growth for sometime as there is large demand for their products at this time and next 2-3 years. However, there are multiple MNCs and few mid cap Indian companies in technical textile space that are doing research and trying to move up the value chain.
b. Salary of MD - Over the last five years, our MD had increased his salary by 50% multiple times. As of now, it was below Rs. 1 Cr which is not bad. I can live with this, and hope that he would not give such a high jump every two years.
c. Two major conflicts - In one similar company ( technical textile and packaging space ), the MD holds above 25% stake, and it seems that this company is run by his son. The son is also shareholder in the main company ( Jagdamba ). Basically, the promoter of the main company consists of husband, wife, his son, and one lady ( most likely wife of son ). These four guys hold shares in this another company. As per one article on internet, all four live in a single house in Mumbai. The two companies ( main company and company probably run by his son ) are doing business with each other as well. The MD and other director of main company are running another company. Why do not they merge all these companies ? What is the succession planning ? Are these companies not competing for the same customer or at least same market ?

I could be wrong in my assumptions, and I am sorry if I offended directors of the company. I do not want to hurt anyone. I just want to be careful with my hard earned money.

Disclosure : Not Invested


I sent below questions to the investor relations.
Kindly answer my below queries.

  1. Shri Shakti Polyweave Private -

a. Are there any common products between Shakti Polyweave and Shri Jagdamba Polymers ?

b. Apart from directors and KMP, are employees shared between Shakti Polyweave and Shri Jagdamba Polymers ?

c. Is this company run by son of promoter of Shri Shakti Polyweave Private ?

  1. Shri Tech Tex -

a. What is annual turnover of this company ?

b. Is there any common business between Shri Tech Tex and Shri Jagdamba Polymers ?

  1. Is there a plan to merge all these companies ?

  2. What is the succession plan ? Does the son of promoter ( Mr. Ramakant Bhojnagarwala ) plan to take over Shri Shakti Polyweave Private Limited ?

Thank you in advance for answering my queries. I apologize if I offended anyone with my questions.


Do you got any response on your queries? If you get please share it?

1 Like

Promoters prefer their private company to the public listed company and grow it to much larger size by expanding capacity. No capacity addition in public listed company since 2010


Since the Company has recently carried out around Rs.37cr of Capex, some of the concerns related to management preferences towards their private company have been quelled. That being said, the Company has given out 7.7cr short term loan (most probably to a related party) while funding the Capex predominantly through around 20cr of debt.

Management conflict of interest and the highly competitive nature of the business are big negatives. However the Company, despite its size has best in class return ratios (ROE and ROCE) in the industry, driven by best in class asset turnover and superior NPM. Debt to Equity is also below my median peerset which include Essel Propack, Polyplex, and Uflex.

I have priced in the management risk premium into my valuations and also taken into account the long runway for growth considering latest Capex and industry outlook (somewhere around 12%):

I’ve valued the Company at around Rs.187-200cr or (Rs. 214-219 / share).

Please let me know if anyone wants to view my analysis (MS Word) along with my model (MS Excel). This is not an advert so I’ll send it across for free, no worries. Just trying to share my perspective, gain insights and perhaps get some constructive feedback.

Thanks and cheers! :+1:t5:


Did you get any response on these queries ? Any idea about Promoter integrity? I can’t find much information. Everything looks fine about this company except promoter integrity ? It has given breakout on charts as well today. Technical Textile will see very good growth in this decade due to government push. Anyone who is aware of promoter integrity please share thought.

Disc : Not invested but interested.

Company posted again good results, there is significant increase in all important parameters.

Increase in YOY Quarterly sales growth
Increase in YOY Quarterly profit growth
Increase in Net Profit latest quarter
Increase in QoQ Profits too
May be that’s the reason stock closed in upper circuit today. Company consistently posting good results even during in tough time.

Financial Results Q2 2020 on 12Nov2020.pdf (1.1 MB)

What do you think on the performance of the company, can one think of investing ?
Company is showing consistent increase in profit every quarter.
Disclaimer:- I am not holding any shares, but thinking of Investing.

1 Like

Promoter integrity is something you have to factor in in your analysis or valuation. I have done both by quantifying it and building it into my WACC. I think the best offsetting factor for the promoter integrity is heavy Capex (almost doubling capacity) which was undertaken in FY19 because so far the argument was that they weren’t interested in investing in this business.
I missed the train according to my valuation so I don’t have any ownership interest. However I’ll just leave my analysis here for you guys to reviewShriJagadamba_IC.pdf (1.0 MB) SJP_Model_2020_v1.xlsx (83.8 KB)


Company has acquired land next to their existing facility to expand their manufacturing facility.

Disclosure: Invested (position size here, no transactions in last-30 days)


This is the slide from investor presentation of Polyplex, this product is same as Jagadamba’s ?

1 Like

Hi all

It appears the company’s biz performance should be ideally linked to housing market in the US. Housing market in the US has cooled down since the beginning of the year ( United States Housing Starts - July 2022 Data - 1959-2021 Historical - August Forecast (

However, SJPL has managed to see resilient growth. What is leading to this trend? Some hypothesis include

  1. Full service players like Dupont are losing share to Epilay (SJPL’s front), even if market is slowing down
  2. Slowdown impact would been seen as a lag, potentially in the coming quarters?

This is an important question to answer because interest rates have been low since the GFC. With rising rates, housing market could slow down in the medium term, and unless SJPL is doing something structurally different, it should also see a contraction in growth.

@harsh.beria93 @rupaniamit would appreciate your views since you seem to closely track the company.



replacement market is much bigger than new construction market…my feeling that SJPL (epilay) is winning/increasing market share from incumbent players

source: (slide #27)

Disc: not invested, no transactions in last 60+ days


A couple of interesting data points from the latest annual report.

  1. Company gave sales breakup according to HSN code. In this product, Jagdamba’s export share increased from 16% in FY21 to 21% in FY22

  1. Promoter bought 4.74% shares from open market in March 2022 quarter. I verified that there have not been any inter-se promoter transfer, so increase in shareholding has to be via open market acquisition.

Disclosure: Invested (position size here, no transactions in last-30 days)


Care’s rating update:

Care has placed the ratings of Shri Jagdamba Polymers Limited (SJPL) under the ‘issuer non-cooperating’ category as SJPL had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement.

Promoters have also set-up another company Shakti Polyweave Private Limited (SPPL) which is also engaged in similar line of operations. Both these companies operate under common management and have business linkages.

As per AR23 of Shri Jagdamba Polymers Ltd following plants are owned by company,
Screenshot 2024-01-10 155457

Promoters recently listed one more company by the name of “Shri Techtex Ltd” on NSE, I was going through its DRHP available on it’s wesite DRHP-Shri-Techtex-Limited.pdf ( I found that promoters have mortgaged some of Shri Jagdamba plants as follow,

Does shareholders of Shri Jagdamba know about that? did management take permission from shareholders?

@rupaniamit & @harsh.beria93 are you guy’s have any updates?