Jyoti Resins and Adhesives Ltd
BSE:514448
Jyoti Resins and Adhesives Ltd
Jyoti Resins & Adhesives Ltd. engages in the manufacture and trading of synthetic wood adhesives. The company is headquartered in Ahmedabad, Gujarat. The firm's products include EURO XTRA, EURO WP 2IN1, EURO EXREME 3, EURO ULTRA 5IN1, EURO PVC GLUE, EURO EXTREME 3 HI STRONG, EURO 2IN1 and EURO EWR. The firm's products are used in residential, commercial and industrial sectors. The firm's products are available in all sizes from 500 grams (gm) to 20 kilograms (kg). The firm has approximately 22 branches and operates across 12 states in India. The firm has a plant with a capacity of approximately 1500 tons/month, which is located at Santej, Kalol.
Jyoti Resins & Adhesives Ltd. engages in the manufacture and trading of synthetic wood adhesives. The company is headquartered in Ahmedabad, Gujarat. The firm's products include EURO XTRA, EURO WP 2IN1, EURO EXREME 3, EURO ULTRA 5IN1, EURO PVC GLUE, EURO EXTREME 3 HI STRONG, EURO 2IN1 and EURO EWR. The firm's products are used in residential, commercial and industrial sectors. The firm's products are available in all sizes from 500 grams (gm) to 20 kilograms (kg). The firm has approximately 22 branches and operates across 12 states in India. The firm has a plant with a capacity of approximately 1500 tons/month, which is located at Santej, Kalol.
Flat Performance: Q3 revenue and volume growth were flat year-on-year, following 20% volume growth in Q2. Management characterized the quarter as soft, mainly due to a weak October.
Margins Under Pressure: EBITDA margin has dropped from historical highs of 32–34% to about 25–26%, mainly due to increased marketing spend and geographic expansion.
Heavy Marketing Spend: The company continues significant ATL/BTL marketing investments, including a brand ambassador, but results have not yet appeared in topline growth or volumes.
No Pricing Pressure: Management said there is no significant pricing pressure but acknowledged strong competition, especially from peers with double-digit growth.
Expansion Focus: Efforts continue to build presence in new states, with most growth still coming from established western and central markets. Brownfield expansion nearing completion.
Buyback & Auditor Concerns: Shareholders pressed for a buyback and appointment of a more reputed auditor to boost confidence. Management said both are under consideration.
