Jai Balaji Industries shares locked in 5% upper circuit on robust earnings; up over 1000% this year
Jai Balaji Industries have been on a winning streak. The stock was locked in the 5% upper circuit for the fourth consecutive trading day on Tuesday. During this period, the shares have zoomed from ₹510 apiece to hit a 15-year high of ₹620 in today's session, resulting in a spectacular gain of 21.56%.
This performance pushed the stock's gain to 42% in October so far. On Monday, the company announced robust Q2FY24 earnings, with its consolidated net profit surging by 862% to reach ₹202 crore. In the same period of last year, it posted a net profit of ₹22 crore, and in the preceding June quarter (Q1FY24), it recorded a net profit of ₹170 crore.
The revenue from operations during the September quarter came in at ₹1,547 crore, a surge of 13% over Q2 FY23 revenue of ₹1,369 crore. The company also saw a significant jump in other income to ₹28 crore, which is an increase of 460% YoY and 250% on a QoQ basis. It reported a 238% YoY growth in operating profit to ₹213 crore, while the operating profit margin expanded by 900 basis points on a YoY basis.
The EPS (earnings per share) improved to ₹12.56 in Q2 FY24 from ₹1.66 in the year-ago quarter. At the prevailing price, the stock trades at a price-to-earnings multiple of 25.72x, which is lower compared to the industry P/E of 33.6x. Jai Balaji Industries primarily operates in the steel sector.
The company is engaged in the production of a wide range of steel products, including pig iron, sponge iron, ferro alloys, steel billets, and TMT bars (Thermo Mechanically Treated bars). The shares in the current year so far have delivered phenomenal returns, with their value skyrocketing from ₹54.70 apiece to the current market value of ₹620, translating into a whopping 1033% return. Over the
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