Multibagger stock Jyoti Structures jumps 10% on bagging ₹741 crore order from PowerGrid Corp

Multibagger Stock: Shares of Jyoti Structures jumped 10% in early morning trade today, January 24, to ₹25 apiece, after the company secured a significant order. 

On Thursday, the company informed investors through an exchange filing that it received a Notification of Award from PowerGrid Corporation of India Limited, a Government of India Enterprise.

The order is for the designing, detailing, testing, and supply of towers and all line materials, including conductors, as well as survey, soil investigation, foundations, erection, stringing, testing, and commissioning of Package 01 of the ±800 kV HVDC Bipole Line (Hexa Lapwing) between KPS2 (HVDC) and Nagpur (HVDC) (with Dedicated Metallic Return) on a total turnkey basis. The project is valued at ₹741.28 crore, as per the company's regulatory filing.

This is the largest order secured by the company in recent years. Jyoti Structures operates in the electricity transmission, distribution, and substation sectors, specialising in delivering turnkey projects that include the design, testing, manufacturing, erection, and commissioning of transmission lines, substations, and power distribution projects, both domestically and internationally.

Jyoti Structure is part of ace investor Ashish Kacholia's portfolio. Kacholia, known as the "Big Whale" of Dalal Street, held a 2% stake in the company at the end of the December quarter. He entered the stock in September by acquiring a 2.52% stake but later trimmed his holding to 2%.

Up 400% since March 2023

Since March 2023, the company's shares have exhibited a consistent upward trend, surging from ₹5 apiece to the current trading price of ₹25, marking an impressive gain of 400%. Despite this remarkable rally, the stock remains approximately 90% below its all-time high of ₹311, reached in February 2008.

The stock's yearly performance trend shows that it faced a decade-long decline from 2008 to 2018 before gaining momentum in 2019. In CY21, the stock recorded a gain of 180%. It ended the previous calendar year with a gain of 52%.

For the quarter ended September 2024 (Q2FY25), the company reported a consolidated net profit of ₹7.06 crore, compared to a net profit of ₹11.20 crore in the same period last year. Its revenue from operations stood at ₹107.49 crore, a jump from ₹81.46 crore.

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