Multibagger stock hits new 1-year, investors wealth rises 4-folds in over 2 yrs

Market


Mumbai-based Jai Corp is a small cap trading on stock exchanges. On Monday, the stock clocked a new 52-week high, giving nearly 11% returns to investors in a single day. Just a day before the first nationwide lockdown came into effect, the stock crashed below 48 price level, however, now the shares have skyrocketed by around 148 in less than 30 months. There is further potential for upside in Jai Corp. In its technical report, Ventura Securities sees the stock to reach between 225 to 575 level going forward.

On BSE, Jai Corp shares closed at 190.50 apiece up by 14.35 or 8.15%. The shares had touched a new 52-week high of 195.45 apiece on the exchange earlier today — taking the overall upside by at least 10.96%.

It has a market cap of 3,399.46 crore.

Jai Corp shares have climbed by a whopping 93% in the last three months. While in a year, the shares have jumped by nearly 54%.

On March 23, 2020, the shares were around 47.65 per piece on Dalal Street. The nationwide lockdown came into effect from midnight on March 24th during this time due to the Coronavirus pandemic which halted many business activities globally.

Since then, in less than 30 months, the shares have soared by a breath-taking 299.79% if taken into consideration Monday’s closing price. However, if taken into consideration the new 52-week high, Jai Corp shares surged by a massive 310.2% on D-Street. That means, in less than 30 months since the first wave of Covid, Jai Corp shares have climbed by around 4-folds.

With that, investors who parked their money in Jai Corp in late March 2020, most likely saw their wealth quadruple as of now.

It needs to be noted that Jai Corp shares were less than 2 in 2003.

Should you buy Jai Corp shares?

According to Ventura Securities report, Jai Corp stock started its up move from 1.45 (April 2003) to 1,450 (Jan 2008), making series of Higher Tops & Higher Bottoms, supported by volumes. During the move, the stock continuously traded above averages.

Thereafter profit booking followed, and the stock traded below averages and made a low of 35.5 in Aug 2013. In between stock rallied a bit but was unable to crossover the 300-350 Price zone area, the report explained.

However, the report highlighted that recently the stock has given Symmetrical triangle breakouts in Monthly charts. Monthly price bar is formed above the line connecting Jan 2008 & Aug 2022.

“The William % R, CCI & ADX Indicators indicate buying strength in the stock,” Ventura’s report added, “The behaviour of the Price suggests a possible further Up Move.”

Ventura keeps possible targets of 225-375 -575 on Jai Corp. If the stock price corrects downwards the buy levels are (165-152)-141-(130-124) in rupees.

Incorporated in 1985, Jai Corp has traditionally been into manufacturing businesses like steel, plastic processing, and spinning yarn. Apart from the expansion of its plastic processing business, it is now focusing and investing in emerging opportunities like developing SEZs, infrastructure, venture capital, and real estate. It is listed on both exchanges BSE and NSE.

During the first quarter of FY23, the company witnessed growth in both the bottom-line and top-line front. It garnered a consolidated net profit of 14.19 crore against 11.58 crore in the same quarter last year. Consolidated revenue from operations stood at 194.61 crore in Q1FY23 versus 186.12 crore in Q1 of FY22.

On segment-wise performance, Jai Corp recorded healthy revenue growth in plastic processing at 168.32 crore in Q1FY23 against 146.71 crore in Q1FY22. However, steel business revenue declined to 24.89 crore against 39.17 crore in Q1FY22.

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