This company’s stock has risen over 2,700 percent from Rs 48.20 in July 2020 and is currently trading at Rs 1,367, giving a significant gain of 2,736 percent to its investors. If an investor had put Rs. 1 lakh into the stock, that Rs. 1 Lakh would have turned to Rs. 28,36,000 if someone had invested in 2020 and held the share till date.
With a market capitalisation of Rs 1,642 crores, the shares of Jyoti Resins and Adhesives Ltd are currently trading at Rs 1,367 per share, and in the past 1 year, it has given a negative return of 6 per cent, and the past 5-year return stands at 2,736 per cent.
Jyoti Resins and Adhesives Ltd was founded in 1993 and is based in Ahmedabad. The company makes synthetic resins and wood adhesives under the EURO brand. Its products, including waterproof and multipurpose adhesives, are popular in the fast-moving consumer goods market throughout India.
Financial and Highlights
The company reported a revenue of Rs 284 crores in FY25, up 10.50 percent from Rs 257 crores in FY24. Additionally, on a year-on-year and quarterly basis, revenue grew 11.26 percent to Rs 79 crores in Q4 FY25 from Rs 71 crores during the period.
It reported a net profit of Rs 74 crores in FY25, up 10.45 per cent from Rs 67 crores in FY24. On a year-on-year and quarterly basis, net profit rose 5.26 percent to Rs 20 crores in Q4 FY25 from Rs 19 crores during the period.
Competitive Advantages
The company operates with a low-cost, asset-light approach. It keeps manpower costs below 15 percent and selling expenses around 16 to 17 percent of revenue. With an 8x asset turnover and solid EBITDA/tonne, it operates without debt and maintains positive cash flow.
It offers a wide variety of products under the EURO brand. This range includes adhesives that are anti-termite (waterproofing), Wider Coverage (fungal & heat resistance), weatherproof (high fixing strength), and suitable for wood, PVC, and acrylic. These products are effective in both hot and cold press applications.
The company is present in 14 states, working with 65 distributors in smaller towns and 48 branches in major cities. It serves over 12,500 retailers, supported by 430 sales staff.
There is a strong loyalty program for carpenters, featuring rewards and app-based point redemption. More than 3,50,000 carpenters are engaged, with 2,00,000 actively participating in the program.
Recently, celebrity actor Pankaj Tripathi became the National Brand Ambassador for Euro Adhesives, the company’s main product. He represents the new ‘Pakka Jod’ campaign, which highlights features like fast drying, termite resistance, waterproofing, weatherproof strength, and improved coverage with less product. The campaign launched in May 2025 and is being promoted through TV, print, digital, and outdoor platforms across the country.
Future Highlights
The company aims to maintain strong return ratios, with ROE in the range of 30-40 percent and ROCE over 40 percent. It wants to stay debt-free while generating positive operating and free cash flows.
The plan is to keep expenses under 30-35 percent of revenue, with around 34 percent for FY25. Over the next three to five years, the company targets a 20 percent volume CAGR, driven by expansion and improved efficiency.
To support this growth, the company plans to expand its distribution network and branches. It aims to increase its presence in existing markets and enter new markets, which will help improve market share.
It is also working on setting up a new warehouse and expanding its existing facility to meet growing demand. In terms of operations, the company currently has a production capacity of 2,000 TPM, which is taken care of by its Santej, Ahmedabad plant alone.
Written by Satyajeet Mukherjee
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