Jai Balaji Industries Shares Jumped 13 Times This Year — Multibagger Stock

The company's Chairman and Managing Director Aditya Jajodia sees peak revenue to reach around Rs 9,000-10,000 crore.

<div class="paragraphs"><p>Carbon Steel Billets and Blooms (Source: Jai Balaji Industries Website)</p></div>
Carbon Steel Billets and Blooms (Source: Jai Balaji Industries Website)

Shares of Jai Balaji Industries Ltd. have surged over 13 times this year after the company enhanced operational efficiency.

The company's capital expenditure plans amount to approximately Rs 1,000 crore, and no debt has been incurred for this capital expenditure, said Chairman and Managing Director Aditya Jajodia. Peak revenue is projected to reach around Rs 9,000–10,000 crore, he said.

The steel manufacturer's turnaround commenced after the financial restructuring that took place with the banks, he told NDTV Profit on The Multibagger Show

"Because of the past ethical conduct with the stakeholders, we got a lot of support from stakeholders and banks as well. The turnaround started in the year 2019."

"The only debt on the books is of Tata Capital, and the amount is approximately Rs 560 crore. The repayment schedule spans around three years, but a repayment is also under consideration," Jajodia said.

Other Highlights

  • With the cost-cutting measures and expansions, the margins should increase by 20%.

  • The mix between government and private customers is 50–50%, Jajodia said. "The margins between the two do not differ much."

  • The product mix is leading to profitability and margin growth, he noted.

  • "We would like to complete all our capex plans, and the next step is the company moving completely debt-free."

  • "We are into five product baskets, and the value-added products are ferro alloys and ductile iron pipes. These were contributing around 30–35% to revenue three years back." As of now, it is 60%, and going forward, after 18 months, it is going to be 75–80% of the revenue, he said.

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"Turnaround is quite real; I still see some more steam left," said Ashish Kapur, chief executive officer of Invest Shoppe Pvt. He has set Rs 900 as target price for the stock.

Watch the full conversation here:

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