Jai Corp shares up 27% in five sessions; company issues clarification on stock price movement

Shares of Jai Corp Ltd were trading 1.70 per cent higher at Rs 388.20 in Thursday's trade. At the mentioned price, the stock has gained 26.57 in past five trading days. Exchanges have sought clarification from the small-cap firm over the significant movement in its share price. Jai Corp, in response, said it has no information on the share price movement. The said reply was in reference to a 20 per cent uptick recorded in Tuesday's trading session.

"We have no information as to the reason for the significant movement in the price of the company's security on the BSE Limited Exchange, in the recent past. We also have no information/announcement to make at this point of time with respect to the company's operation/performance which, in our opinion, may have a bearing on the price behaviour of the company's shares," it stated.

Bourses BSE and NSE have put the securities of Jai Corp under the short-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

Around 2.22 lakh shares were last seen changing hands on BSE today. The figure was higher than the two-week average volume of 1.54 lakh shares, Turnover on the counter came at Rs 8.93 crore, commanding a market capitalisation (m-cap) of Rs 6,923.84 crore.

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 73.52. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 126.37 against a price-to-book (P/B) value of 4.91. Earnings per share (EPS) stood at 3.02 with a return on equity of 3.89.

As of March 2024, promoters held a 73.79 per cent stake in the company.

Jai Corp was incorporated in 1985. The company is engaged in manufacturing businesses such as steel, plastic processing and spinning yarn. It is currently focusing and investing in emerging opportunities like developing SEZs, infrastructure, venture capital and real estate.