Textile Stock Jumped Over 14 Per Cent After Company Announced Supply Agreement for Automative Sector; Purchase of Additional Land & Machinery & Launch of New Product
The stock is up by 24 per cent from its 52-week low of Rs 154 per share and gave multibagger returns of 465 per cent in 5 years.
On Monday, one of the Top Gainers on BSE, shares of Jasch Industries Ltd jumped over 14 per cent to an intraday high of Rs 197 per share from its previous closing of Rs 172.4 per share. The stock’s 52-week high is Rs 377 and its 52-week low is Rs 154. The shares of the company saw a spurt in volume by more than 10 times on BSE.
The Board of Directors Announced the Following Updates
Supply Agreement for Automative Sector: The Company has finalized terms of Supply and Quality Assurance with an entity, which is the registered supplier of coated fabrics to a renowned car maker. Samples of the Company have been approved by the said car maker which has so far been importing coated fabrics for use in car interiors.
Purchase of additional land and machinery: The Company has purchased about 3 acres of land and placed an order for the purchase of four imported (used) PVC/PU-coated fabric lines. A cost of Rs 28 crore is estimated for setting up an additional plant in Sonipat Distt (Haryana). Capacity addition, when it occurs, will be intimated to the BSE.
Launch of new product: The Company has launched a new product — lamination adhesive - within the existing capacity of PU resins. The product category is PU adhesive. No capacity addition or additional investment is involved. After test marketing, it has been launched in India on the occasion of Diwali (01-11-2024). The product is expected to cater to both domestic and international markets. Besides sales of this product to some existing users of PU resin, samples of the new product are being supplied to users to assess the suitability of the product to their requirements.
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About the Company
Jasch Industries Ltd is a multifaceted company specializing in the production of coated textiles, synthetic leather and electronic thickness gauges. Their PU and PVC-coated fabrics, commonly known as synthetic leather, are widely utilized in the footwear industry as a crucial raw material for shoe manufacturing. Additionally, the company excels in providing online measurement and control systems for flat sheet products. Their electronic gauges, including thickness gauges, coating thickness gauges and paint thickness gauges, are essential tools for industries such as paper, plastic films and steel, aiding in precise measurement and quality control.
The company has a market cap of Rs 129.8 crore with a PE of 17x, an ROE of 32 per cent and an ROCE of 22 per cent. The stock is up by 28 per cent from its 52-week low of Rs 154 per share and gave multibagger returns of 465 per cent in 5 years. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.