52-week high alert: This multibagger small-cap stock posts threefold jump in net profit; Do you own it?

52-week high alert: This multibagger small-cap stock posts threefold jump in net profit; Do you own it?

Bhavya Rathod

The scrip witnessed massive spurt in volume by more than 1.23 times

On Tuesday, shares of Jain Irrigation Systems zoomed more than 5.5 per cent to trade at a new 52-week high level of Rs 50.64 apiece on BSE. The scrip witnessed massive spurt in volume by more than 1.23 times. At the end of the trading session of the day, the stock closed down by 1.28 per cent at Rs 47.81 per share on BSE. 

In Q1FY24, the consolidated revenue of the company has surged by 20.1 per cent, reaching Rs 1701 crore. Simultaneously, the consolidated EBITDA has experienced a robust growth of 25.9 per cent, totaling Rs 227.1 crore. Notably, the consolidated PAT has witnessed an impressive threefold increase, soaring to Rs 36.6 crore. The order book of the company stands at Rs 1929 crore, which includes the orders of Rs 404.1 crore for Hi-tech Agri Products division, Rs 523.6 crore for Plastic division and Rs 1001.3 crore for Agro Processing division.

During the quarter, a noteworthy resurgence of demand was observed in the MIS, Pipe, and Tissue Culture segments of the company. Employing a focused strategy, the company regained its robust position by decreasing its reliance on project-oriented endeavours, instead concentrating on bolstering its market presence within MIS, Pipes, and Tissue Culture domains.

Despite subdued resin prices, the company managed to sustain strong volume demand in MIS, Pipes, and Tissue Culture, aided by enhanced working capital management. A committed effort to reduce overall debt, optimize working capital cycles, and enhance margins remains central to the company's objectives, even as it navigates growth.

The company's dedication extends to fostering product innovation and providing sustainable environmental solutions to farmers, all while expanding its retail business through an expanded network of dealers nationwide. With these strategies in place, the company anticipates a continued positive momentum throughout the latter half of the ongoing fiscal year.

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Jain Irrigation Systems Limited is engaged in providing solutions in agriculture, piping and infrastructure through manufacturing of micro irrigation systems, PVC pipes, HDPE pipes, plastic sheets, agro processed products, renewable energy solutions, tissue culture plants, financial services and other agricultural inputs.

The stock witnessed significant buying activity as it has given multibagger returns of more than 350 per cent in just 3 years. Keep a close eye on this trending multibagger stock.

 

Disclaimer: The article is for informational purposes only and not investment advice.

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