Shares of this metal stock under the ‘small-cap’ category have proven to deliver multibagger returns over a short-term period of just three years.
Jai Balaji Industries Ltd is a company based in India that is engaged in the business of manufacturing iron & steel products. The company’s product portfolio includes pig iron, sponge iron, TMT bars, ferro chrome, and many other such items. The company has a business presence within as well as outside India.
With a market capitalization of Rs 10,024.93 crores, the company’s shares hit the 5 percent upper circuit at the fag end of the trading session on October 20th and closed at Rs 624.80. The company’s stock also reached its 52-week high level on Friday at Rs 625.05.
According to the data available from the Bombay Stock Exchange (BSE), the company’s stock has given multibagger returns of approximately 3,817 percent over a period of just three years ranging from Rs 15.95 in October 2020 to the current stock price levels.
The same means that if someone had invested Rs 10,000 into the stock, it would have converted to around Rs 3.92 lakhs within the above-mentioned period.
Coming onto the latest financial reports, the company, on a quarterly basis, has portrayed an increase in operating revenues as well as net profits.
The operating revenues increased from Rs 1,482.57 crores during Q1FY23-24 to Rs 1,546.63 crores during Q2FY23-24, and, the net profits, in congruence, rose from Rs 170.43 crores to Rs 201.55 crores keeping the timeframe the same.
In the past couple of financial years, the company’s bottom-line numbers have reached the positive zone which favourably impacts the profitability ratios of the company. The return on capital employed (RoCE) was reported at 13.27 percent during FY22-23, an increase as compared to 9.16 percent reported during the previous financial year.
According to the latest shareholding data available for the quarter ended September 2023, the company’s Promoters hold a 60.02 percent stake followed by the Public (retail) investors holding the remaining 39.98 percent stake in the company.
Written by Amit Madnani
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