JITF Infra- Seen Having Bottomed Out?

JITF Infra (JITF) was recommended by us at Rs. 34.50 on 11th Aug, as Multibagger. Stock after having moved to Rs. 337 on 18th October, has been hitting LC for last 1 month, is now ruling at Rs. 177, having corrected by 47% in this 1 month. Now, volume also seen having shrunk, with less than 1 lakh shares seen for last 9 trading days, with jobbing spread seen of Rs. 3 to Rs.5, which implies that weak hands seen having almost exited.

This O.P. Jindal Group company, aims to be a prominent infrastructure development company, with focus on sustainable development in the Railway Rolling Stock manufacturing, Water and Waste Water EPC business and Waste to Energy under Municipal Solid Waste management sector. JITF Infra posted rise in income in Q2 FY22  to Rs. 230 cr, from Rs. 208 cr on QoQ,  with best working capital management. WIP and Non-Current assets rose by Rs. 150 cr, which was funded by loan from associate companies. So, if a company has sound and strong fundamentals, valuation will definitely get captured, which may be a matter of time.

Paid up equity of the company is tiny, just at Rs. 5.14 cr (FV Rs.2), with promoter stake of 63%, while over 5% is held by the Institutional Investors. Present M cap of Rs. 455 cr has again seen attractive, with annual sales of Rs. 1,000 crores. Free float of Rs.145 cr, is held by HNIs and Value investors, to the extent of 50%, can once again get easily mopped up, in view of huge growth prospects seen for the company, belonging to OP Jindal Group.

It is likely that stock will change the track and may start hitting UC again soon.

This is not a Buy or Sell recommendation, while stock recommendations are provided exclusively to our paid members in the Member Zone.