Established presence in the domestic market:
JIL is managed by Mr. Ravi Manchanda (Managing Director), Mr. Deepankar Barat (President) along with Mr. Anil Vanjani (CEO & CFO) and Ms. Roshni Jaiswal (Promoter Family). Ms. Roshni Jaiswal belongs to a business family, which has been in the AlcoBev industry for over seven decades. The promoters are very resourceful and have supported the entity with the funding as and when required. The seven-decade track record of operations in the AlcoBev and Food industry has helped JIL establish presence with entities like HUL and a geographic presence across 17 States and 2 Union Territories in domestic market, and 13 countries including U.S.A., Italy and U.A.E, to name a few.

­Steady scale of operations albeit decline in profitability
JIL reported operating income of Rs. 556.93 Cr. in FY2024 as against Rs. 510.85 Cr. in FY2023. The operating margin of the company increased to 4.17 % in FY2024 as compared to 2.47 % in FY2023 However, the company has recorded revenue (gross) of Rs.160.13 Cr. in Q3FY2025 as against Rs.192.84 Cr. in Q3FY2024. The company has stopped its job works for HUL for Malted Milk Food used for the production of health drinks, due to low demand of those products . The operating margin declined due to delayed excise policy implementation resulting a change in pricing of the Company’s products. There were delays in states of Punjab and Telangana where JIL has majority of its alcobev sales. Raw materials like Barley/Nakku/Husk/etc have highly fluctuating prices and over the last 2 quarters prices have increased which has affected their margins. Further, PAT margin stood at 1.70 % in FY2024 as against 1.80 % in FY2023. 
The PAT for 9MFY2025 stood at negative Rs.16.45 crore compared to Rs.7.51 crore for 9MFY2024. 
The company expects that the operating performance of the company would improve with the with the onset of ethanol plant.


Efficient working capital cycle
JIL has working capital requirements as evident from gross current assets (GCA) of 107 days in FY2024 as compared to 67 days in FY2023. Higher GCA days are on account of high cash and bank balance and other current assets in the form of advance to suppliers as on 31st March 2024. Debtor days increased to 24 days in FY2024 as against 20 days in FY2023. Inventory days increased to 43 days in FY2024 as against 32 days in FY2023. Credit terms with suppliers usually range between 60 to 70 days. The bank limit utilization stood at ~75% for 12 months in FY2024.Acuité believes that the working capital operations of the company will remain at the similar levels over the medium term.

Weak Financial Risk Profile
The financial risk profile of the company is marked by moderate net worth, high gearing and moderate debt protection metrics. The tangible net worth of the company stood at Rs. 84.78 Cr. as on FY2024 as compared to Rs.62.43 Cr. as on FY2023 due to accretion to reserves. The adjusted gearing of the company stood high at 2.83 times as on FY2024 . The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) has stood at 6.21 times as on FY2024. This is expected to reduce in the medium term due to expected proceeds from sale of Gurugram property and earnings from ethanol plant, to be used for paying LRD loan. The debt protection metrices of the company remain moderate marked by Interest coverage ratio (ICR) of 1.74 times and debt service coverage ratio (DSCR) of 1.18 times for FY2024. The net cash accruals to total debt (NCA/TD) stood at 0.07 times in FY2024. Going forward, Acuité believes that the financial risk profile will improve slightly over the medium term, supported by steady accrual, reduction in debt and better debt protection metrices.


Intense competition and highly regulated nature of liquor industry
JIL revenues will continue to be impacted by increasing competition in the domestic IMFL market from global players as well as regional players. In addition, The Indian alcohol industry is highly regulated at almost every stage in the value chain. Furthermore, every state has its set of regulations with respect to distribution and retail channels, registration, taxation, and pricing of alcohol, ban on advertising, raw material availability, varying tax structures in different states pose challenges and restrict the industry’s growth. The industry is also administered through a strict license regime. Different licenses are mandated at stages of production and distribution, including separate ones for manufacturers, distributors, and retailers. Any adverse change in the government's license authorisation policy, such as discontinuation or caps on renewal of licenses or sharp hike in license fees, could affect the entity.