Stock of this iron & steel products company has zoomed 102% in six weeks

Till 02:48 PM; a combined 9.8 million equity shares or 6.5 per cent of total equity of the company changed hands on the NSE and BSE.

Shares of Jai Balaji Industries hit a 52-week high of Rs 84.78, surging 18 per cent on the BSE in Tuesday’s intra-day trade. In past two trading days, the stock of iron & steel products company had soared 42 per cent. In past  six weeks, the market price of the company more-than-doubled or zoomed 102 per cent from level of Rs 42 on March 28, 2023.

The average trading volumes at the counter rose multiple-fold today. A combined 9.8 million equity shares or 6.5 per cent of total equity of the company changed hands on the NSE and BSE till 02:48 PM. In comparison, the S&P BSE Sensex was up 0.01 per cent at 61,767.

On April 27, Jai Balaji Industries said the promoter group namely Shri Mahatejas Vinimay Private Limited had acquired 5.1 million equity shares of the company pursuant to the conversion of 5.1 million convertible warrants into the same number of equity shares allotted on preferential allotment basis.

Jai Balaji Industries is primarily engaged in business of manufacturing of Iron and Steel products including Sponge Iron, Pig Iron, Ductile Iron Pipe, Ferro Chrome,Billet, TMT, Coke and Sinter with captive power plant. The company is an integrated steel manufacturer with five units in three mineral-rich states of eastern India.

For the first nine months (April to December) for financial year 2022-23 (9MFY23), the company had reported 71 per cent year-on-year (YoY) jump in its net profit at Rs 70.91 crore. Income from operations grew 33 per cent YoY at Rs 4,401 crore.

Jai Balaji Industries had posted net profit of Rs 48 crore and revenue of Rs 4,634 crore for the entire financial year 2021-22 (FY22).

The company in its FY22 annual report had said the industry is witnessing consolidation of players, which has led to investment by entities from other sectors. The ongoing consolidation also presents an opportunity to global players to enter the Indian market.