JSW Dulux Ltd.
ISIN: INE133A01011 • Market Cap: ₹14,086 Cr
The 5-Pillar Quality Audit for JSW Dulux Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (13.6%), Return on Capital Employed (11.9%), and equity compounding (80.5%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (-3.2%) and 3Y PAT CAGR (66.3%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 7.18 vs PEG of 0.48 and Dividend Yield of 6.7%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 61.2%, backed by 30.5% institutional ownership.
Key Fundamental Strengths
Robust Equity Compounding (ROE: 80.5%)
Shareholder equity compounds at a healthy 80.5%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
High-Velocity Profit Compounding (3Y PAT CAGR: 66.3%)
Net earnings have compounded at 66.3% annualized, demonstrating operating leverage.
Attractive Valuation Margin (P/E: 7.18)
Trading at a P/E multiple of 7.18, the stock offers a favourable risk-reward entry for quality compounding.
Deep Institutional Sponsorship (30.5%)
Mutual funds, domestic DIIs, and foreign FIIs hold 30.5%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 11.9%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Topline Stagnation (3Y Sales CAGR: -3.2%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Quantitative Strategy Eligibility
Checking JSWDULUX against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 78/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Consumer Durables Sector Peer Comparison
Compare JSWDULUX directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| JSW Dulux Ltd. (JSWDULUX)Current | 78/100 | ₹14,086 Cr | 7.18 | 11.9% | 0.00 | — |
| Titan Company Ltd. (TITAN) | 70/100 | ₹4.50 Lakh Cr | 78.05 | 39.2% | 1.76 | View |
| Asian Paints Ltd. (ASIANPAINT) | 67/100 | ₹2.51 Lakh Cr | 52.73 | 24.4% | 0.11 | View |
| LG Electronics India Ltd. (LGEINDIA) | 65/100 | ₹1.12 Lakh Cr | 61.16 | 28.4% | 0.00 | View |
| Dixon Technologies (India) Ltd. (DIXON) | 82/100 | ₹88,626 Cr | 47.21 | 30.1% | 0.07 | View |
| Havells India Ltd. (HAVELLS) | 70/100 | ₹80,202 Cr | 49.11 | 22.7% | 0.00 | View |
Frequently Asked Questions: JSW Dulux Ltd.
Q:What is the 5-Pillar Fundamental Score for JSW Dulux Ltd. (JSWDULUX)?
JSW Dulux Ltd. has a RupeeTools Fundamental Score of 78/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (73/100), Financial Health (84/100), Growth (60/100), Valuation (95/100), and Ownership Quality (85/100).
Q:Is JSWDULUX fundamentally strong for long-term investment?
Yes, JSWDULUX exhibits solid fundamental strength with a 78/100 score, driven by a return on equity of 80.5% and a debt-to-equity ratio of 0.00.
Q:Does JSWDULUX pass the Coffee Can Investing filter?
No. JSWDULUX does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does JSWDULUX compare against other Consumer Durables peers?
Within India's Consumer Durables sector, JSWDULUX trades at a P/E of 7.18 and generates an ROCE of 11.9%. Compare its 5-Pillar score of 78/100 against top sector peers like Titan Company Ltd. (70/100), Asian Paints Ltd. (67/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.