Jagatjit Industries

Jagatjit Industries Limited (JIL) was set up in 1944 under the patronage of Maharajah of Kapurthala. It is one of the largest alcoholic beverage breweries and manufacturer of dairy products in India. It sells IMF liquor under the brand of Aristocrat and many other. It has a malted drink – Compleat . The company had its brand, Maltova, which it sold off to SmithKline.  The company has discontinued its packaging business.

On the financial front, there is really nothing much to talk about as it has been a consistent loss maker. And keeping up with this tradition, it ended Q2FY16 with a net loss of Rs.11.57 crore and H1FY16 loss stands at Rs.16 crore. Its interest outgo is pretty steep at over Rs.19 crore in first half.

The stock price hit a new 52-week high yesterday at Rs.54.90 on news that it has got the shareholders approval to either mortgage or get a charge on its properties, not exceeding Rs.500 crore.  A 71-year old company, surely the land bank would fetch great value and that is currently the reason why the stock is happy – only reason why someone would pick up a loss making company. Market cap at Rs.240 crore is also a pointed to the very same fact. Its brand, Aristocrat continues to command a premium market shares and that too is a reason for the buoyant stock price.