The board of this microcap company considered and approved to avail of a term Loan of 180 crores to set up an ethanol distillery plant. In one year, the shares have delivered a multibagger return of 140 percent to its shareholders. 

For example, a year ago if someone had invested Rs. 1 lakh then, the worth of those shares would be Rs. 2.4 lakhs now. 

With a market capitalization of Rs. 999 crores, the shares of Jagatjit Industries Ltd opened flat on Friday’s trading session at Rs. 219. The share went to hit an intraday low of Rs. 204.55 making a loss of around 4 percent and closed its day at Rs. 208 apiece. 

In an exchange filing, the company mentioned that the board had considered and approved to avail Term Loan of Rs. 180 crores from the Indian Renewable Energy Development Agency Limited (IREDA) for setting up a 200 KLPD Grain-based ethanol Distillery Plant at the Company’s unit situated at Jagatjit Nagar, Punjab for production of ethanol from grain. 

Digging into the financial statement of the company, revenue marginally increased by 3 percent from Rs. 174.11 crores in the June quarter to Rs. 179.022 crores in the September quarter. On a contrasting note, the net profit declined by 10 percent from Rs. 2.64 crores to Rs. 2.38 crores during the same timeframe. 

Looking at the important financial ratios, the return on equity increased from 1.49 percent in FY21-22 to 11.91 percent during FY22-23. In addition, the return on capital employed improved from 11.49 percent to 13.39 percent during the same period. 

According to the latest shareholding pattern, Promoters have an 88.03 percent stake in the company, and the remaining 11.97 percent are with the Retail Investors. 

Headquartered in Punjab, Jagatijt Industries was incorporated in the year 1944. The company manufactures a variety of alcoholic beverages, including malt whiskey, gin, and vodka. With alcohol, the company also produces and sells the “Milkfood” brand of frozen desserts, ghee, and milk products. 

Written By Vaibhav Patil


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