Up 1,000% in 180 days, Jai Balaji shares hit 5% upper circuit limit for 2nd day; what management says

Shares of Jai Balaji Industries Ltd hit their 5 per cent upper circuit limit for the second straight session to hit a fresh all-time high in Thursday's trade. With this, the smallcap stock has delivered a six-month return of nearly 1,000 per cent (995 per cent). The maker of iron and steel products is up 1,448.77 per cent in the last one year, with its shares now trading under long-term ASM framework, Stage 4.

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.

Chairman and Managing Director of Jai Balaji Industries, Aditya Jajodia said: “Jai Balaji Industries is a turnaround story that is unique in iron and steel. From peak debt of Rs 3,400 crore and NPA tag in 2016, we have now brought debt down to Rs 559 crore today. We are on course to be a zero net debt company soon.”

Jajodia said his company is investing Rs 1,000 crore in expanding capacity in ductile iron pipes and high-grade ferro alloys. "All of it will happen from internal accruals,” he said.

The company said it plans capacity addition in ductile iron pipes to 3 lakh tonne at present  to 6.5 lakh tonne. Besides, it is carrying on a capacity addition plan in high-grade ferro that would increase its capacity to 72,000 tonnes from 30,000 tonnes at present.

On Thursday, the scrip was locked at its upper circuit limit of Rs 847.95 on BSE. As per stock exchanges, shortlistings of stocks under ASM are on mainly account of market surveillance. This is among pre-emptive surveillance measures in order to enhance market integrity and safeguard interest of investors.

Recently the NCLT Kolkata approved a scheme of amalgamation of two of the subsidiaries namely Jai Balaji Energy and Jai Balaji Steel with the holding company.  The scheme has become operative and effective from December 22, 2023.

 

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

 

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