Jakharia Fabric (NSE:JAKHARIA) GF Value Rank : 2 (As of May. 27, 2024)

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What is Jakharia Fabric GF Value Rank?

Jakharia Fabric has the GF Value Rank of 2.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Jakharia Fabric's GF Value Rank

For the Textile Manufacturing subindustry, Jakharia Fabric's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Jakharia Fabric's GF Value Rank Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Jakharia Fabric's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Jakharia Fabric's GF Value Rank falls into.

Jakharia Fabric GF Value Rank Related Terms

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Jakharia Fabric (NSE:JAKHARIA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Jakharia Fabric Ltd (NSE:JAKHARIA) » Definitions » GF Value Rank

Traded in Other Exchanges

N/A

Address

Office No. 1224, Deoji Nagar, Near Shanti Sagar Building, Narpoli Village, Bhiwandi, Thane, MH, IND, 421 302

Website

https://www.jakhariafabric.com

Jakharia Fabric Ltd is engaged in the business of dyeing and processing of fabrics on job work basis for other textile companies as well as for own manufacturing product lines. The company obtains grey fabric from the market and further dyes and finishes the same as per the client's requirements on the basis of the quality of the fabric, sizing, and other requirements. It also outsources certain processes like the weaving of the fabric and printing as per the demand of the customers. The Company is operating only in one segment which is the processing of textiles. Its product portfolio covers Polyster, Rayon fabrics, Modal fabrics, Blended poly yarn, Viscose fabrics, and others.

Jakharia Fabric (NSE:JAKHARIA) Headlines

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