Multibagger liquor stock hits upper circuit after ₹180 crore loan sanction. Shares close to record high

Multibagger stock: Shares of Jagatjit Industries Ltd have been in uptrend since March 2023. The BSE listed stock bottomed out at around ₹90 and went on to hit ₹150 apiece levels during morning deals on Tuesday. It is one of the multibagger stocks that Indian stock market has delivered in last few years. In post-Covid rebound, this multibagger stock has surged from around ₹19 to ₹150 apiece levels, delivering to the tune of 700 per cent return to its positional investors who took position during borrom fishing after the Covid-19 sell off. However, it seems that the small-cap brewery stock still has some steam left in it.

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Multibagger luiquor stock today opened upside and went on to hit 5 per cent upper circuit within few minutes of stock market's opening bell on Tuesday. While hitting upper circuit, the small-cap vrewery stock came close to its life-time high of ₹163 apiece on BSE.

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Jagatjit Industries news

The liquor company recently announced that it has received a sanction of term loan of ₹180 crore from Indian Renewable Energy Development Agency (IREDA). This capital is earmarked for the establishment of a cutting-edge 200 KLPD grain-based ethanol distillery plant, situated across 25 sprawling acres in Hamira, Punjab. The primary objective of this facility is the production of ethanol for blending with petroleum, thereby contributing to the biofuel sector.

Jagatjit Industries claimed that it has already secured environmental clearance from the Ministry of Forest & Environment in FY 2022-2023 for this groundbreaking ethanol manufacturing facility. The total project investment is approximately INR 210 crores, with a projected breakeven period of 5 years. The positive cash flows generated by the ethanol plant will be reinvested into our IMFL business and allocated towards debt repayment. Remarkably, the ethanol business is anticipated to achieve EBITDA positivity right from its inaugural year of operation.

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Jagatjit Industries financials

In Q1FY24 results, company’s total revenue soared to an impressive ₹181.17 crore, representing a substantial increase of 42.42 per cent compared to the same period last year, when it stood at ₹127.21 crore. Furthermore, their quarterly net profit in June 2023 reached ₹2.64 crore, marking a remarkable 160 per cent increase from the net loss of ₹4.40 crore reported in June 2022. Additionally, the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for June 2023 stood at an impressive ₹11.80 crore, signifying a substantial growth of 116.12 per cent from ₹5.46 crore in June 2022.

Company's Q2 results for the current financial year is still awaited.

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