In the world of Indian stocks, Jagatjit Industries Ltd is one of the hidden gems that has been steadily climbing since March 2023. This BSE-listed stock, which once traded near ₹90, has surged to around ₹150 per share during Tuesday’s early trading hours. It is a prime example of a multibagger stock, having delivered substantial returns to investors over the years. In the wake of the post-Covid rebound, this stock has rocketed from approximately ₹19 to ₹150 per share, yielding a staggering 700 percent return to those who had the foresight to invest during the pandemic-induced market sell-off.
Surprisingly, the small-cap brewery stock seems to have more room for growth.
Today, this multibagger liquor stock opened on a positive note and quickly hit the 5 percent upper circuit limit as soon as the stock market opened for the day on Tuesday. In reaching this upper circuit, the small-cap brewery stock inched closer to its all-time high of ₹163 per share on the BSE.
Here’s what’s driving the surge in Jagatjit Industries’ stock:
Jagatjit Industries Announces Loan Sanction:
Jagatjit Industries recently revealed that it has secured a term loan of ₹180 crore from the Indian Renewable Energy Development Agency (IREDA). This capital infusion is designated for the construction of a state-of-the-art 200 KLPD grain-based ethanol distillery plant located on a sprawling 25-acre site in Hamira, Punjab. The primary goal of this facility is to produce ethanol for blending with petroleum, thereby contributing to the biofuel sector.
Jagatjit Industries also stated that it has already obtained environmental clearance from the Ministry of Forest & Environment during the financial year 2022-2023 for this groundbreaking ethanol manufacturing facility. The total project cost is estimated to be around ₹210 crore, with an anticipated breakeven period of 5 years. Positive cash flows generated by the ethanol plant will be reinvested in the Indian Made Foreign Liquor (IMFL) business and allocated for debt repayment. Importantly, the ethanol business is expected to achieve EBITDA positivity from its very first year of operation.
Impressive Financial Performance:
In the financial results for the first quarter of the fiscal year 2024, the company reported a substantial increase in total revenue, which surged to ₹181.17 crore—an impressive 42.42 percent increase compared to the same period in the previous year when it stood at ₹127.21 crore. Additionally, the net profit for the quarter ending in June 2023 reached ₹2.64 crore, marking a remarkable 160 percent increase from the net loss of ₹4.40 crore reported in June 2022. Furthermore, the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for June 2023 reached an impressive ₹11.80 crore, signifying a substantial growth of 116.12 percent from ₹5.46 crore in June 2022.
The company’s second-quarter results for the current fiscal year are still awaited, which has further piqued the interest of investors.
Jagatjit Industries is certainly a stock to watch as it continues to break records and attract investor attention.
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