Shares of Jagatjit Industries hit the 5% upper circuit for four days in a row. Its share price reached a 52-week high of ₹ 136.10 apiece on the Bombay Stock Exchange (BSE) on Thursday.
Jagatjit Industries Limited manufactures an entire range of alcoholic beverages and markets malt extracts and malted milk foods. In the past year, the company’s share price increased from ₹ 54.70 to ₹ 136.10, delivering multibagger returns of 148.81%. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 2.48 lakhs today!
“Through careful planning, operational efficiency, and a commitment to technology and innovation, we have achieved remarkable financial milestones. This marks the first time in a decade that Jagatjit Industries reports a double-digit figure in Profit Before Taxes, signifying the success of our turnaround strategy,” said Roshini Sanah Jaiswal, Promoter & Chief Restructuring Officer at Jagatjit Industries.
The company reported losses during each financial year, starting from FY14 through to FY20. However, it reported profits in the financial years FY21, FY22 and FY23.
In FY23, the company reported a 1140.68% increase in its net profit to ₹ 7.32 crores, as compared to ₹ 0.59 crores in the previous year (FY22). Its revenue from operations climbed 28.92% to ₹ 582.02 crores in FY23 from ₹ 451.45 crores in FY22.
With a market capitalization of ₹ 602 crores, Jagatjit Industries is a small-cap company. It has a return on equity of 11.19% but a high debt-to-equity ratio of 3.41. Its shares were trading at a price-to-earnings ratio (P/E) of 85.86, which is significantly higher than the industry P/E of 29.00, indicating that the stock might be overvalued as compared to its peers.
The company’s promoters hold a 74.13% stake in it, followed by retail investors with 25.83%, mutual funds with 0.03% and other domestic institutions with 0.01%.
Written By Simran Bafna
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