Shares of this metal stock under the ‘small-cap’ category have proven to deliver multibagger returns of more than 2,000 percent over a short-term period of just one year. In the last five trading sessions itself, the company’s stock rose by around 15 percent.
Jai Balaji Industries Limited is a company based in India that is engaged in the business of manufacturing iron & steel products. The company offers various products, some of which include pig iron, sponge iron, TMT bars, and ferro chrome among others. The company conducts its business activities within as well as outside India.
With a market capitalization of Rs 20,457.41 crores, the company’s shares opened their trading hour on Wednesday at Rs 1,267 and currently trade at Rs 1,275. The company’s stock hit its fresh 52-week high at Rs 1,307.
According to the data available from the Exchanges, the company’s stock has given multibagger returns of approximately 2,460 percent over a period of just one year ranging from Rs 49.65 in February 2023 to the current stock price levels.
The same means that if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to around Rs 25.60 lakhs. Having a glance at the latest financials of the company, the basic business parameters, such as operating revenues and after-tax profits, showed movements in opposing directions.
The former, on one end, decreased marginally from Rs 1,547 crores during Q2FY24 to Rs 1,539 crores during Q3FY24, and, the latter, on the other end, rose from Rs 202 crores to Rs 235 crores keeping the time horizon the same.
As per the recent presentations, the company announced a total capital expenditure (Capex) of Rs 1,000 crores, out of which an outlay of Rs 4,000 crores in “Specialized Products” is done for ‘DI Pipes’ which is expected to be commissioned by FY25. In other products, an outlay of Rs 250 crores in revamping the existing Blast Furnaces and is expected to be completed by the next FY on an overall basis.
According to the latest shareholding data available for the quarter ended December 2023, the company’s Promoters hold a 60.02 percent stake followed by the Public (retail) investors holding the remaining 37.4 percent stake in the company.
Written by Amit Madnani
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