Shares of a company in the textile industry surged 10.23 per cent to reach a fresh 52-week high of ₹ 268.90 apiece on the Bombay Stock Exchange (BSE). This happened after the company announced that the NCLT had sanctioned its demerger.
Jasch Industries is engaged in manufacturing coated textile/synthetic leather and electronic thickness gauges. The company’s share price increased from ₹ 26.10 three years ago to ₹ 268.90 apiece, thereby delivering multibagger returns of 930.27 per cent. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares three years ago, the value of their holdings would have been ₹ 10.30 lakhs today!
According to an exchange filing, the company has received an order from the ” National Company Law Tribunal (NCLT), New Delhi Bench, dated September 12, 2023, sanctioning the composite scheme of arrangement between itself (demerged company) and Jasch Gauging Technologies Limited (resulting company) and their respective shareholders and creditors.
According to the filing, the demerged company and the resulting company have their own set of strengths and dynamics in the form of nature of risks, competition, challenges, opportunities and business methods, leading to different growth potentials. Hence, the segregation of the undertakings would help the management to explore potential business opportunities effectively and efficiently. It is proposed that Jasch Gauging Technologies Limited be listed.
With a market capitalization of ₹ 276 crores, Jasch Industries is a micro-cap company. It has a high return on equity of 23.58 per cent and an ideal debt-to-equity ratio of 0.08. Its shares were trading at a price-to-earnings ratio (P/E) of 12.83, which is lower than the industry P/E
of 59.89, indicating that the stock might be undervalued as compared to its peers. The company’s promoters hold a 57.63 per cent stake in it, followed by retail investors with 42.37 per cent.
Written by Simran Bafna
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