Incorporated in 1981, Jocil Ltd is a prominent manufacturer specializing in fatty acids and toilet soap. The company is also notable for its commitment to sustainable energy, generating power from renewable sources such as biomass and wind. With a robust presence in the industry, Jocil Ltd continues to innovate and expand its offerings.
This article delve into the company’s history, product range, sustainable initiatives, financial performance, and future prospects, providing a comprehensive overview of Jocil Ltd.
Jocil Ltd: Pioneering Excellence in Oleochemicals and Renewable Energy
Jocil Ltd is a leader in manufacturing oleochemicals and soap, producing stearic acid, fatty acids, refined glycerine, soap noodles, and toilet soap. Using non-edible vegetable oils and fat distillates, Jocil transforms raw materials into high-quality finished products. The company caters to a diverse clientele, including major brands like HUL, Marico, Johnson & Johnson, and Asian Paints, serving industries such as pharmaceuticals, cosmetics, textiles, and more. Jocil also excels in contract manufacturing for FMCG giants. Committed to sustainability, Jocil operates a 6 MW biomass co-generation power plant at its Guntur facility and four wind energy generators in Tamil Nadu, totaling 6.30 MW. With a long-term power purchase agreement with TANGEDCO, Jocil not only meets its energy needs but also contributes to the grid. This article explores Jocil Ltd’s multifaceted operations, innovative products, and unwavering dedication to renewable energy.
Jocil Limited Reduces Dividend Amid Earnings Decline
Jocil Limited has announced a reduction in its dividend to ₹1.50, yielding 0.8%, effective October 19th. While the dividend cut is notable, it remains comparable within the industry. The payout ratio, previously a large proportion of earnings, now represents just 9.8% of free cash flows, indicating ample room for business reinvestment. However, with earnings per share declining around 11% annually over the past five years, future dividend stability is uncertain. Investors should be cautious as the payout ratio could reach 77% within 12 months, highlighting potential volatility and limited growth prospects.
Jocil Limited Q4 Results Summary (March 2024)
- Sales: Achieved ₹182.32 crores, reflecting a slight dip from ₹200.10 crores in the previous quarter.
- Expenses: Managed to reduce to ₹179.15 crores, down from ₹195.48 crores in the last quarter.
- Operating Profit: Rebounded to ₹3.17 crores, a notable recovery from the operating loss of ₹2.88 crores in the prior quarter.
- Operating Profit Margin (OPM): Improved to 1.74%, a positive shift from the previous quarter’s -1.67%.
- Other Income: Increased to ₹1.10 crores, up from ₹0.56 crores in the previous quarter.
- Interest: Significantly reduced to ₹0.05 crores, from ₹0.27 crores in the prior quarter.
- Depreciation: Slightly decreased to ₹1.62 crores, compared to ₹1.63 crores in the last quarter.
- Profit Before Tax: Turned around to ₹2.60 crores, a significant improvement from the loss of ₹4.22 crores in the previous quarter.
- Tax Rate: Rose to 35.00%, up from 25.12% in the last quarter.
- Net Profit: Recovered to ₹1.69 crores, from a net loss of ₹3.16 crores in the prior quarter.
- Earnings Per Share (EPS): Bounced back to ₹1.90, compared to a negative ₹-3.56 in the last quarter.
Below are the trading platforms that you can use to purchase Jocil Ltd shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| July 2024 | 224.64 | 195.34 |
| August 2024 | 233.63 | 203.15 |
| September 2024 | 242.97 | 211.28 |
| October 2024 | 238.21 | 207.14 |
| November 2024 | 245.35 | 213.35 |
| December 2024 | 251.49 | 218.68 |
Jocil Ltd’s share price is expected to exhibit steady growth throughout 2024. Starting with a range of ₹224.64 to ₹195.34 in July, the share price is projected to rise, reaching a peak of ₹251.49 by December. The minimum price is anticipated to increase from ₹195.34 in July to ₹218.68 by the end of the year.
Currently, Jocil Ltd has a market cap of ₹185 Cr, with a current price of ₹208. The stock has a high/low of ₹263/163, a P/E ratio of 107, and a book value of ₹237. With a dividend yield of 1.20%, ROCE of 1.40%, and ROE of 0.83%, Jocil Ltd presents a promising yet cautious investment outlook.
| When | Maximum Price | Minimum Price |
| January 2025 | 256.52 | 197.32 |
| February 2025 | 263.09 | 202.38 |
| March 2025 | 273.35 | 210.27 |
| April 2025 | 267.99 | 206.15 |
| May 2025 | 260.19 | 200.15 |
| June 2025 | 271.90 | 209.15 |
| July 2025 | 266.57 | 205.05 |
| August 2025 | 274.81 | 211.39 |
| September 2025 | 284.43 | 218.79 |
| October 2025 | 291.82 | 224.48 |
| November 2025 | 299.12 | 230.09 |
| December 2025 | 306.60 | 235.84 |
Jocil Ltd’s share price is projected to maintain an upward trend throughout 2025, starting with a range of ₹256.52 to ₹197.32 in January and potentially reaching a high of ₹306.60 by December. The minimum price is expected to rise from ₹197.32 in January to ₹235.84 by the end of the year.
For FY23, Jocil Ltd reported production figures of approximately 72,514 MT of fatty acids, 44,892 MT of toilet soap and soap products, 24,502,397 kWh of biomass power, 11,073,930 kWh of wind power, 1,386 MT of glycerine, and 2,239 MT of fatty acid pitch. This robust production capacity underpins the company’s growth prospects for the upcoming year.
| When | Maximum Price | Minimum Price |
| January 2026 | 315.80 | 242.92 |
| February 2026 | 323.89 | 249.15 |
| March 2026 | 336.52 | 258.86 |
| April 2026 | 329.93 | 253.79 |
| May 2026 | 320.32 | 246.40 |
| June 2026 | 334.73 | 257.48 |
| July 2026 | 328.17 | 252.44 |
| August 2026 | 338.32 | 260.24 |
| September 2026 | 350.16 | 269.35 |
| October 2026 | 359.26 | 276.36 |
| November 2026 | 368.24 | 283.26 |
| December 2026 | 377.45 | 290.35 |
Jocil Ltd’s share price is anticipated to continue its upward trajectory in 2026, with a maximum of ₹315.80 in January, climbing to ₹377.45 by December. The minimum price is projected to rise from ₹242.92 in January to ₹290.35 at year-end. For FY23, Jocil’s revenue breakdown was as follows: fatty acids contributed approximately 56%, soap products 41%, glycerine 1%, pitch 1%, and other products 1%. This diverse revenue stream, coupled with robust production capabilities, underscores the company’s strong market position and growth potential, supporting the positive share price outlook for 2026.
| When | Maximum Price | Minimum Price |
| January 2027 | 385.00 | 296.15 |
| February 2027 | 394.87 | 303.75 |
| March 2027 | 410.27 | 315.59 |
| April 2027 | 402.23 | 309.40 |
| May 2027 | 390.51 | 300.39 |
| June 2027 | 408.08 | 313.91 |
| July 2027 | 400.08 | 307.76 |
| August 2027 | 412.46 | 317.27 |
| September 2027 | 426.89 | 328.38 |
| October 2027 | 437.99 | 336.92 |
| November 2027 | 448.94 | 345.34 |
| December 2027 | 460.16 | 353.97 |
Jocil Ltd’s share price is forecasted to rise steadily throughout 2027, starting with a maximum of ₹385.00 in January and potentially reaching ₹460.16 by December. The minimum price is expected to increase from ₹296.15 in January to ₹353.97 at year-end.
Jocil Ltd, a subsidiary of The Andhra Sugars Limited, with ASL holding 55.02% of its equity share capital, benefits from strong backing and strategic support. This affiliation, combined with robust production and diversified revenue streams, underscores Jocil’s promising growth outlook and positive share price trajectory for 2027.
| When | Maximum Price | Minimum Price |
| January 2028 | 469.37 | 361.05 |
| February 2028 | 481.40 | 370.31 |
| March 2028 | 500.18 | 384.75 |
| April 2028 | 490.37 | 377.21 |
| May 2028 | 476.09 | 366.22 |
| June 2028 | 497.51 | 382.70 |
| July 2028 | 487.76 | 375.20 |
| August 2028 | 502.84 | 386.80 |
| September 2028 | 520.44 | 400.34 |
| October 2028 | 533.97 | 410.75 |
| November 2028 | 547.32 | 421.02 |
| December 2028 | 561.00 | 431.54 |
- January 2028: ₹361.05 (Minimum)
- December 2028: ₹561.00 (Maximum)
| When | Maximum Price | Minimum Price |
| January 2029 | 572.22 | 440.17 |
| February 2029 | 586.90 | 451.46 |
| March 2029 | 609.79 | 469.07 |
| April 2029 | 597.83 | 459.87 |
| May 2029 | 580.42 | 446.47 |
| June 2029 | 606.54 | 466.57 |
| July 2029 | 594.64 | 457.42 |
| August 2029 | 613.03 | 471.56 |
| September 2029 | 634.49 | 488.07 |
| October 2029 | 650.99 | 500.76 |
| November 2029 | 667.26 | 513.28 |
| December 2029 | 683.94 | 526.11 |
- January 2029: ₹440.17 (Minimum)
- December 2029: ₹683.94 (Maximum)
| When | Maximum Price | Minimum Price |
| January 2030 | 697.62 | 536.63 |
| February 2030 | 715.51 | 550.39 |
| March 2030 | 743.41 | 571.86 |
| April 2030 | 728.84 | 560.64 |
| May 2030 | 707.61 | 544.31 |
| June 2030 | 739.45 | 568.81 |
| July 2030 | 724.95 | 557.66 |
| August 2030 | 747.37 | 574.90 |
| September 2030 | 773.53 | 595.02 |
| October 2030 | 793.64 | 610.49 |
| November 2030 | 813.48 | 625.76 |
| December 2030 | 833.82 | 641.40 |
- January 2030: ₹536.63 (Minimum)
- December 2030: ₹833.82 (Maximum)
Financial Condition of Jocil Ltd: Last 5 Years
| Financial Metric | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|
| Sales (Rs. Crores) | 402 | 446 | 565 | 754 | 919 | 753 |
| Expenses (Rs. Crores) | 396 | 427 | 544 | 738 | 902 | 748 |
| Operating Profit (Rs. Crores) | 7 | 19 | 21 | 15 | 18 | 5 |
| OPM % | 2% | 4% | 4% | 2% | 2% | 1% |
| Other Income (Rs. Crores) | 2 | 6 | 1 | 1 | 2 | 4 |
| Interest (Rs. Crores) | 1 | 1 | 1 | 0 | 1 | 0 |
| Depreciation (Rs. Crores) | 6 | 6 | 6 | 7 | 6 | 6 |
| Profit before tax (Rs. Crores) | 1 | 18 | 15 | 10 | 13 | 3 |
| Tax % | -152% | 29% | 12% | 26% | 22% | 35% |
| Net Profit (Rs. Crores) | 3 | 12 | 14 | 7 | 10 | 2 |
| EPS in Rs | 3.57 | 14.06 | 15.32 | 8.03 | 11.26 | 1.95 |
| Dividend Payout % | 28% | 21% | 20% | 25% | 22% | 77% |
Over the past five years, Jocil Ltd has experienced fluctuating financial performance. The company’s sales increased steadily from Rs. 402 crores in 2019 to a peak of Rs. 919 crores in 2023, before slightly declining to Rs. 753 crores in 2024. Similarly, expenses followed a comparable trend, growing from Rs. 396 crores in 2019 to Rs. 902 crores in 2023, then reducing to Rs. 748 crores in 2024. Despite these variations, the operating profit remained low, peaking at Rs. 21 crores in 2021 and dropping to Rs. 5 crores in 2024, reflecting a consistent OPM of around 1-4%.
The compounded sales growth for Jocil Ltd over 10 years stands at 7%, with a significant rise of 13% over the last five years. However, the company’s compounded profit growth has been negative, indicating a decline of 17% over 10 years and 11% over the last five years. The stock price CAGR shows a positive trend with an 18% increase over five years, reflecting investor confidence. Despite these growth figures, the return on equity has remained low, at just 1% in the last year, suggesting limited profitability.
FAQs
What is Jocil Ltd’s current market cap?
Jocil Ltd currently boasts a market capitalization of approximately ₹185 crore, reflecting its position within the industry and investor sentiment.
Jocil Ltd’s shares are trading at ₹208, demonstrating stability amidst market fluctuations.
Analysts foresee Jocil Ltd’s share price potentially ranging between ₹195.34 to ₹251.49 by the end of 2024, driven by anticipated market demand and financial performance expectations.
Looking ahead to 2025, market projections suggest Jocil Ltd’s share price could fluctuate between ₹197.32 and ₹306.60, reflecting optimism surrounding the company’s growth trajectory and market conditions.
Over the longer term, Jocil Ltd’s share price target is anticipated to range from ₹536.63 to ₹833.82 by 2030, underpinned by strategic initiatives, market dynamics, and industry trends.
What is Jocil Ltd’s current P/E ratio?
Jocil Ltd currently maintains a Price-to-Earnings (P/E) ratio of 107, indicating investor confidence in its earnings potential relative to its share price.
What is the ROCE (Return on Capital Employed) of Jocil Ltd?
Jocil Ltd’s Return on Capital Employed (ROCE) stands at 1.40%, highlighting its efficiency in generating returns from its capital investments, a crucial metric for assessing financial health and operational effectiveness.
How has Jocil Ltd’s net profit trended over the last five years?
Jocil Ltd’s net profit has exhibited variability over the past five years, culminating in ₹2 crores in FY24, indicative of market challenges and operational adjustments amidst economic fluctuations.
What is Jocil Ltd’s dividend payout ratio trend?
The dividend payout ratio of Jocil Ltd has fluctuated, reaching 77% in FY24, reflecting management’s strategy to balance dividend distributions with reinvestment opportunities to sustain growth and shareholder value.
What is the historical growth rate of Jocil Ltd’s sales?
Jocil Ltd has sustained a compounded sales growth rate of 7% over the past decade, underscoring its resilience and ability to capture market opportunities amidst evolving industry dynamics.
Also Read
- Senco Gold Share Price Target 2024, 2025 To 2030
- Piramal Enterprises Share Price Target 2024, 2025 to 2030
- Paras Defence & Space Technologies Limited Share Price Target 2024, 2025 to 2030
Conclusion: Evaluating Investment Potential in Jocil Ltd for 2024
In 2024, considering Jocil Ltd’s robust market presence in oleochemicals and soap production, along with its commitment to sustainable energy, investing in the company presents both opportunities and cautions. The company’s diversified product portfolio catering to major industries and its strategic renewable energy initiatives underline its long-term growth potential. Additionally, being almost debt-free, trading below its book value, and maintaining a healthy dividend payout ratio of 41.4% are positive indicators for investors seeking stable returns.
However, potential investors should note the company’s low Return on Equity (ROE) of 3.07% over the last three years, suggesting challenges in maximizing profitability from shareholders’ investments. The inclusion of significant other income in earnings also warrants careful consideration of the company’s core operational profitability.
Therefore, while Jocil Ltd offers promising prospects driven by its industry leadership and sustainability efforts, investors should weigh these against its profitability metrics and market risks. A thorough analysis of financial health, operational efficiencies, and market conditions is advisable before making an investment decision in Jocil Ltd for 2024.
What did we learn?
- 1 Jocil Ltd: Pioneering Excellence in Oleochemicals and Renewable Energy
- 2 Jocil Limited Reduces Dividend Amid Earnings Decline
- 3 Jocil Limited Q4 Results Summary (March 2024)
- 4 How to Buy Jocil Ltd Shares ?
- 5 Jocil Limited Share Price Prediction: 2024 – 2030
- 6 Financial Condition of Jocil Ltd: Last 5 Years
- 7 FAQs
- 7.1 What is Jocil Ltd’s current market cap?
- 7.2 What is Jocil Ltd’s current share price?
- 7.3 What is Jocil Ltd’s share price target for 2024?
- 7.4 What is Jocil Ltd’s share price target for 2025?
- 7.5 What is Jocil Ltd’s share price target for 2030?
- 7.6 What is Jocil Ltd’s current P/E ratio?
- 7.7 What is the ROCE (Return on Capital Employed) of Jocil Ltd?
- 7.8 How has Jocil Ltd’s net profit trended over the last five years?
- 7.9 What is Jocil Ltd’s dividend payout ratio trend?
- 7.10 What is the historical growth rate of Jocil Ltd’s sales?
- 8 Conclusion: Evaluating Investment Potential in Jocil Ltd for 2024
