Shares of a steel company notched 5.20 percent gains on Thursday’s early trades to reach an intraday high of ₹ 211.30 apiece on the Bombay Stock Exchange (BSE). This happened after SBI General Insurance bought the company’s shares.
JTL Infra is an integrated manufacturer and supplier of steel tubes, pipes and allied products with manufacturing facilities in India.
The company was in the news today, after SBI General Insurance Company bought 6 lakh shares in it via open market transactions on Wednesday. The transaction was done at an average price of ₹ 201 per share which amounted to a value of ₹ 12.06 crore.
The steel manufacturing company’s share price increased by 116.65 percent, from ₹ 97.53 to ₹ 211.30, in a span of one year to deliver multibagger returns. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 2.16 lakhs today!
In fact, the company’s share price increased by a whopping 1707.53 percent in a span of three years, as its share price increased from ₹ 11.69 to ₹ 211.30 apiece. Thus an investment of ₹ 1 lakh in the company’s shares three years ago would be worth ₹ 18.07 lakhs today!
With a market capitalization of ₹ 3,393 crores, JTL Industries is a small-cap company. It has a high return on equity of 28.05 percent and an ideal debt-to-equity ratio of 0.13. Its shares were trading at a price-to-earnings ratio (P/E) of 32.98, which is higher than the industry P/E of 23.11, indicating that the stock might be overvalued as compared to its peers.
The company’s promoters hold a 56.20 percent stake in the company, followed by retail investors with 42.39 percent, foreign institutions with 0.72 percent and mutual funds with 0.69 percent.
Written by Simran Bafna
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