Multibagger: Up 1845%, this stock turned ₹10,000 into ₹1.94 lakh in a year

Shares of metals and mining firm Jai Balaji Industries have given exceptional returns to their investors in the last 1 year. The stock has delivered phenomenal returns surging over 1845 percent to ₹1,046.90 from ₹53.8 in January 2023.

This implies that an investment of ₹10,000 in this penny stock in January 2023 would have turned into ₹1.94 lakh now.

Jai Balaji Industries stock price trend

The stock has rallied almost 34 percent in January so far, extending gains for the seventh straight month since July 2023.

Between July 2023 and January 2024 (to date), the stock has soared 1277 percent.

Read here: Chennai Petroleum: FIIs raise stake in this multibagger stock to all-time high

In 2023, the stock gave positive returns in eight months and was in the red in 4 months. It also gave multibagger returns in 1 month - July, surging 106.5 percent. Apart from that, it jumped 72 percent in August, 61.4 percent in September, 41 percent in May, and around 31 percent in April and October each.

However, it shed the most in June, down 10 percent followed by March, down 9 percent, February, down 7 percent and January, down 1.6 percent.

The stock hit its record high of ₹1,046.90 in today's session, January 17, 2024. It has now skyrocketed 2392 percent from its 52-week low of ₹42, hit on March 28, 2023.

Read here: Over 45 Nifty 500 stocks gained between 10% and 50% in January so far

Looking at the long-term performance, the shares produced significant returns, as in the last three years, they have zoomed 3824 percent and in the last five-year period, they soared 3422 percent.

Earnings

The company announced robust September quarter results (Q2FY24), with its consolidated net profit surging by 862 percent to ₹202 crore. In the same period of last year, it posted a net profit of ₹22 crore, and in the preceding June quarter (Q1FY24), it recorded a net profit of ₹170 crore.

The revenue from operations during the September quarter came in at ₹1,547 crore, a rise of 13 percent over Q2FY23 revenue of ₹1,369 crore. The company also saw a significant jump in other income to ₹28 crore, which is an increase of 460 percent YoY and 250 percent on a QoQ basis.

Read here: 7 key revelations about the stock that surged 535% in 3 years

Moreover, it reported a 238 percent YoY growth in operating profit to ₹213 crore, while the operating profit margin expanded by 900 basis points on a YoY basis.

About the firm

Jai Balaji Industries Limited manufactures and markets iron and steel products primarily in India. The company provides sponge iron, pig iron, DRI, ductile iron pipes, ferro chrome, TMT bars, coke, steel bars/rods, sinter, ornamental steel grills, Portland slag cement, ferro alloys, and alloy carbon and mild steel billets and rounds. It offers its TMT bars (Thermo Mechanically Treated bars) under the Balaji Shakti brand. The company also exports its products. Jai Balaji Industries Limited was incorporated in 1999 and is based in Kolkata, India.

The promoters own 60 percent of the shares in the company as of August 2023, while foreign portfolio investors and domestic institutional investors each own 0.1 percent and 0.1 percent, respectively. Regular shareholders own 39.8 percent.

Read here: Multibagger! Up 525%, this penny stock turned ₹21.5 into ₹134 in just 3 years

While the stock showcased a stellar return, it's crucial to highlight the inherent risks associated with small-cap stocks. These stocks are characterised by their high-risk nature and are not suitable for investors who adopt a risk-averse approach. It's advisable that only high-risk investors consider investing in such stocks, and even then, allocate only a small percentage of their portfolio to such high-risk assets. Seeking guidance from a financial advisor before making any adjustments to the portfolio is strongly recommended.

Disclaimer: This story is for educational purposes only. Please speak to an investment advisor before making any investment decisions.