Jerash Holdings (US), Inc. (JRSH) | Investment Case

1. Company Snapshot

1.a. Company Description

Jerash Holdings (US), Inc., through its subsidiaries, manufactures and exports customized and readymade sport and outerwear.The company offers t-shirts; jackets and pullover; pants and shorts; crew neck, polo shirts, and tank tops made from knitted fabric, as well as personal protective equipment.It serves various brand-name retailers in the United States, Jordan, and internationally.

The company was incorporated in 2016 and is headquartered in Fairfield, New Jersey.

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1.b. Last Insights on JRSH

Jerash Holdings' recent performance was hindered by lower-than-anticipated results, despite a 30% revenue increase in the fiscal third quarter. The company's chairman and CEO, Sam Choi, attributed the shortfall to unmet expectations. Furthermore, the company's inability to meet its own projections suggests a lack of operational efficiency, which may be a concern for investors. Additionally, the company's failure to capitalize on its revenue growth may indicate underlying issues with its business model or execution.

1.c. Company Highlights

Last Price	2.97
Change Percentage	-1.00%
Open	3.07
Previous Close	3
Market Cap ( Millions)	38
Volume	30039
Year High	4.17
Year Low	2.81
M A 50	3.2
M A 200	3.27

FCF Yield	-13.84%
Dividend Yield	6.67%
ROE	1.29%
Debt / Equity	8.45%
Net Debt / EBIDTA	-7.01%
Price To Book	0.61
Price Earnings Ratio	46.72
Price To FCF	-7.23
Price To sales	0.26
EV / EBITDA	5.34

2. Jerash Holdings Posts Mixed Q3 Results Amidst Expansion and Logistics Challenges

Jerash Holdings reported its fiscal Q3 2025 results, highlighting a 28.6% year-over-year revenue increase to $35.4 million, up from $27.5 million in the prior year. However, the company faced significant headwinds, including $6 million in delayed shipments due to congestion at Israel's Haifa Port, which caused a 4-week delay. Despite these challenges, gross profit rose 20.6% to $5.4 million, though gross margin contracted to 15.2% due to elevated logistics costs. Operating expenses climbed to $4.7 million, driven by higher logistics expenses, while net income plummeted to $6,000, down from $232,000 in the previous year, attributed to higher interest expenses and a tax provision adjustment. On a positive note, the company approved a quarterly dividend of $0.05 per share, underscoring its commitment to returning value to shareholders.

Publication Date: Mar -09

                                    📋 Highlights
                                    Revenue Growth and Logistical Challenges::
                                                Jerash Holdings reported a 28.6% increase in revenue to $35.4 million, despite a $6 million impact from delayed shipments due to congestion at Israel's Haifa Port. Port operations normalized by late January, but the disruption highlights ongoing logistical risks.
Capacity Expansion Plans::
                                                The company is expanding two manufacturing facilities, expecting a 15% capacity increase by June. Additionally, collaboration with the Jordanian government on the Al-Hasa facility could add 5-10% capacity by year-end, positioning the company to meet growing demand.
Gross Margin Compression::
                                                Gross profit rose 20.6% to $5.4 million, but gross margin declined to 15.2% due to higher logistics costs. Management expects margins to stabilize around 15-16% for 2025 and 2026, reflecting new customer acquisitions and production inefficiencies.
Net Income Decline::
                                                Net income dropped to $6,000 from $232,000 last year, driven by higher interest expenses and a tax provision adjustment. This reflects near-term profitability challenges despite top-line growth.
Strong Outlook and Expansion::
                                                The company remains optimistic, with factories fully booked through August and strong interest from new customers. Expansion plans are underway to meet anticipated demand, and management is exploring longer-term projects. The joint venture with Busana is progressing, though high-volume orders remain pending.

                                

Operational Challenges and Expansion Efforts

The company is actively addressing operational bottlenecks while pursuing aggressive expansion plans. Two manufacturing facilities are being expanded, expected to boost capacity by 15% by June, while collaboration with the Jordanian government to enlarge its Al-Hasa facility could add 5-10% capacity by year-end. Management highlighted that factories are fully booked through August, with strong interest from new customers, signaling robust demand. The joint venture with Busana is progressing slowly, with customers like Brooks Brothers testing orders, though high-volume commitments remain elusive. Busana may shift high-value orders to Jordan for tariff savings, while lower-end production remains in Bangladesh.

Valuation and Future Outlook

Jerash Holdings trades at a price-to-sales ratio of 0.33 and an enterprise value-to-EBITDA ratio of 23.41, reflecting the market's expectations for future growth. The company's dividend yield of 5.41% stands out, offering attractive income potential for investors. Management remains optimistic about fiscal Q4, forecasting revenue growth of 50-53% and maintaining a gross margin target of 15-16%. While the company is open to exploring funding options to support its expansion plans, no decision has been made yet. Analysts expect revenue growth to moderate to 8.3% next year, as the company works to stabilize margins and navigate ongoing logistical challenges.

3. NewsRoom

Jerash Holdings (US) (NASDAQ:JRSH) vs. Forward Industries (NASDAQ:FORD) Head-To-Head Review

Dec -01

Source: defenseworld.net

Hugo Boss (OTCMKTS:BOSSY) and Jerash Holdings (US) (NASDAQ:JRSH) Head to Head Analysis

Nov -25

Source: defenseworld.net

Jerash Holdings (US), Inc. (JRSH) Q2 2026 Earnings Call Transcript

Nov -12

Source: seekingalpha.com

Jerash Holdings Reports Fiscal 2026 Second Quarter Financial Results

Nov -12

Source: accessnewswire.com

Jerash Holdings (US), Inc. Declares Quarterly Dividend

Nov -07

Source: accessnewswire.com

Jerash Holdings to Report Financial Results for Fiscal 2026 Second Quarter on Wednesday, November 12, 2025

Nov -04

Source: accessnewswire.com

Jerash Holdings Announces Results of 2025 Annual Meeting of Stockholders

Sep -11

Source: accessnewswire.com

Jerash Holdings to Present at Lake Street's 9th Annual Best Ideas Growth Conference, September 11

Aug -28

Source: accessnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.50%)

6. Segments

Ready-made Sport and Outwear and Personal Protective Equipment

Expected Growth: 7.5%

Growing demand for protective gear in industries, increasing adoption of high-visibility clothing, and rising popularity of outdoor activities drive the growth of ready-made sport and outwear and personal protective equipment market.

7. Detailed Products

Outerwear

Jerash Holdings offers a wide range of outerwear products, including jackets, coats, and vests, designed for various weather conditions and activities.

Activewear

The company provides activewear products, including tops, bottoms, and dresses, designed for fitness enthusiasts and athletes.

Sleepwear

Jerash Holdings offers a variety of sleepwear products, including pajamas, loungewear, and robes, designed for comfort and relaxation.

Intimate Apparel

The company provides intimate apparel products, including bras, panties, shapewear, and loungewear, designed for comfort and support.

Uniforms

Jerash Holdings offers uniforms for various industries, including healthcare, hospitality, and food service, designed for functionality and durability.

8. Jerash Holdings (US), Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Jerash Holdings (US), Inc. is moderate due to the presence of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of buyers in the market, giving them significant negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of multiple suppliers in the market, reducing their negotiating power.

Threat Of New Entrants

The threat of new entrants is moderate due to the presence of barriers to entry, such as high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established competitors in the market, leading to a highly competitive environment.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	1.11%
Debt Cost	7.88%
Equity Weight	98.89%
Equity Cost	7.88%
WACC	7.88%
Leverage	1.13%

11. Quality Control: Jerash Holdings (US), Inc. passed 7 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Jerash Holdings

A-Score: 6.6/10

Value: 7.2

Growth: 2.6

Quality: 5.5

Yield: 9.0

Momentum: 7.0

Volatility: 8.7

1-Year Total Return ->

G-III Apparel

A-Score: 4.9/10

Value: 8.9

Growth: 5.6

Quality: 6.8

Yield: 0.0

Momentum: 3.5

Volatility: 4.7

1-Year Total Return ->

Superior Group of Companies

A-Score: 4.8/10

Value: 6.9

Growth: 5.1

Quality: 3.9

Yield: 7.0

Momentum: 1.5

Volatility: 4.3

1-Year Total Return ->

Oxford Industries

A-Score: 4.7/10

Value: 5.7

Growth: 5.3

Quality: 5.8

Yield: 8.0

Momentum: 0.5

Volatility: 2.7

1-Year Total Return ->

Culp

A-Score: 4.1/10

Value: 9.8

Growth: 1.2

Quality: 5.0

Yield: 1.0

Momentum: 2.0

Volatility: 5.3

1-Year Total Return ->

Lakeland Industries

A-Score: 3.5/10

Value: 9.0

Growth: 2.1

Quality: 3.7

Yield: 1.0

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

27.84%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.88%

Jerash Holdings (US), Inc. - US47632P1012

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on JRSH

1.c. Company Highlights

Higher Yield

Cheaper

Weak Momentum

Earnings Miss

Revenues Beats

Less Volatile

Lower Growth

Average Growth

Stable Momentum

Fairly Valued

Medium Volatility

Earnings Beats

Strong Momentum

Revenues Miss

2. Jerash Holdings Posts Mixed Q3 Results Amidst Expansion and Logistics Challenges

Operational Challenges and Expansion Efforts

Valuation and Future Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.50%)

6. Segments

Ready-made Sport and Outwear and Personal Protective Equipment

Expected Growth: 7.5%

7. Detailed Products

Outerwear

Activewear

Sleepwear

Intimate Apparel

Uniforms

8. Jerash Holdings (US), Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Jerash Holdings (US), Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.97$

Current Price

2.97$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA