Small Cap Stock: The stock market is full of possibilities and risks. Here sometimes a small company fills the pockets of investors and sometimes a big company can drain their money. Well, in recent times, the Indian stock market has remained the first choice of investors. Here, a small cap company Jai Balaji Industries has made a splash in the last one year. On April 25, 2023, the share price of this small company was only Rs 53.03, which has now reached Rs 1086.95 exactly one year later on April 25, 2024. The company’s stock has gone up by 1950 percent in a year and it has achieved the status of a multibagger.
Company’s profit jumped 1,421 percent
The fourth quarter results of Jai Balaji Industries have also been excellent. This is a steel company. It manufactures Ductile Iron Pipe (DI Pipe) and special grade ferro alloy. The company has made a net profit of Rs 879.57 crore in the financial year ending March 31, 2024. There has been a jump of about 1,421 percent in the company’s profit as compared to the previous financial year. The company’s gross sales also increased by 4.71 percent to Rs 6,413.78 crore. This is the reason why there has been a strong rise in its stock. Due to this, the market cap of Jai Balaji Industries, which was Rs 771.32 crore a year ago, has now become Rs 18,744.48 crore. This small cap company was at a loss of Rs 13.08 crore in the January-March quarter a year ago. Now it has made a net profit of Rs 272.98 crore.
Company’s debt is decreasing rapidly
Company Chairman and MD Aditya Jajodia said that we have achieved Ebitda of Rs 1121 crore. In the current financial year, we want to further improve the company’s position by adding new products to our portfolio. The company is benefiting a lot from the supplies under the government’s Jal Jeevan Mission and Amrit Yojana. The company’s net debt was Rs 3,407.9 crore in FY 2021, which has now reduced rapidly to Rs 566.5 crore. The company plans to get completely free from debt in the next 15 months.
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