To Analyse the Financial Performance of JAMSHRI LTD.
INTRODUCTION
- Brief Introduction of the company
Jamshri Realty Limited is an Indian company historically associated with textile manufacturing. The company originally operated in the textile sector but has gradually diversified and shifted its business model toward real estate development, property leasing, and hospitality services. Despite this transition, the company’s origins and promoter background remain connected to the textile industry.
- Industry Overview
India's textile sector is India’s one of the largest sectors in the economy contributing to increase employment, GDP. The industry includes spinning, wavering, processing and garment manufacturing. However many textile traditional companies are facing raw material price fluctuations in the market. Many textile companies now converted their business to other related businesses to sustain in the market.
- Purpose of the Analysis
The purpose of this report is to evaluate the financial health, operational performance, and strategic position of Jamshri Realty Limited while considering its background as a textile company transitioning into other business segments.
COMPANY OVERVIEW
- Background and History
Jamshri Reality limited was initially operated as Jamshri rajnathsingh shipping textile manufacturing enterprise. At the start the company used to work as a spinning and wavering manufacturing mill. The company was founded in 1907 as a composite textile mill in Solapur. After facing many different types of problems in Industry, the company shifted their main operation to real estate and changed their name as Jamshri Reality limited.
- Business model
The company primary operate through textile products but after facing different problems company change their operation to real estate and started earning from other operations as follows :
1) Rental income from commercial properties
2) Property development and leasing
3) Hospitality and service-based operations
- Key Product and Services
The company currently operates in two primary segments:
1) Property and Related Services
2) Hospitality Services
- Market Positioning
Jamshri Realty Limited operates as a small-cap company with a niche presence in property leasing and hospitality services. While it does not currently compete directly with large textile manufacturers, its heritage and management expertise originate from the textile sector.
PROMOTERS / FOUNDER
Name | Designation | Professional background | Role in company |
Mr. PREM DAMANI | Managing Director | Simplex Renewable Resources Pvt Ltd | Planning strategies , managing operations, |
Mr. RAJESH DAMANI | Joint Managing Director | Associated with Damani Group | Restructures financial position |
FINANCIAL ANALYSIS
- Income statement
(In Lakh’s)
Particular | FY2025 | FY2024 |
Income from operation | 905.56 | 672.52 |
Total Expenses | 1042.38 | 991.09 |
Profit Before Tax | (104,50) | (318.57) |
Net Profit / Loss | (111,61)) | (350.63) |
Key Observations of Income Statement:
1) Income from revenue increased as compared to previous year and loss decreased as compared to last year.
2) The company faces huge losses because of high finance and operational as well as depreciation cost.
- Balance sheet analysis
Particular | FY2025 | FY2024 |
Equity share capital | 698.65 | 698.65 |
Total Current Assets | 343.37 | 319.98 |
Total Current Liability | 1,273.59 | 891.40 |
Total ( End of FY) | 5,228.78 | 4,910.12 |
(In Lakh’s)
End of the FY25 –
1) Equity share capital: There is no change in Equity share capital.
2) Total Current Assets: Up by 4% as compared to FY24.
3) Total Current liability: Increased by 42% in total current liability as compared to FY24.
- Cash Flow Statement
(In Lakh’s)
Cash / FY | FY2025 | FY2024 |
Operating | 132.12 | (294.23) |
Investing | (165.54) | (74.71) |
Financing | 3.29 | 2282 |
Cash and Cash Equivalent (In the end ) | 35.64 | 65.77 |
Note –
Cash from operating and financing activity seemed to be positive in FY25 where cash from investing activity in FY24 and FY25 is negative.
Key financial Ratio
1) Profit Ratio
ROE - Net profit / shareholder equity *100 = (16.64%)
2) Liquidity Ratio
Current Ratio – current assets / current liability = 0.2
3) Leverage Ratio
Debt to equity ratio – Total Debt / Shareholder equity = (11.10)
4) Efficiency Ratio
Debtor turnover ratio – Net sale / Total receivable = 0.75
- Year on year comparison
5. KEY INSIGHTS AND INTERPRETATION
- Strengths
1) Having valuable land and real estate assets in the company.
2) With strong employees and management in the management.
3) Increasing leasing agreements with commercial brands.
- Weakness
1) Changes in the industry lead to high operational costs.
2) Declining revenue and continuous net loss.
- Risk factor
1) Transition risk from manufacturing to services.
2) Dependence on real estate demand.
3) Interest rate risk due to borrowing.
- Future Outlook
The Jamshri Reality Limited has a great future in the real estate sector. Currently they are facing net loss because of change in operation from manufacturing to real estate. Real estate has great future and opportunities, companies also have increasing leasing activity with real estate property and agreements with real estate brands.
6. CONCLUSION
Final evaluation of financial condition
Jamshri Realty Limited is currently in a transition phase, shifting from a traditional textile manufacturing background to a real estate and services-based business model. While revenue growth has improved, the company still faces profitability challenges due to financing costs and ongoing development investments.
Investment / Performance Perceptive
From an investor and stakeholders perspective, the company is looking high-risk for investment but has potential recoverable investment, because of high demand for Real estate property and other services in this sector.
Sources
https://www.screener.in/company/502901/
https://www.bloomberg.com/profile/person/16538442