1st Ever Stock Split By Metal Stock: Record Date Will Be Intimated In Due Course; BUY?

Jai Balaji Industries is one of the largest private-sector steel manufacturers in Eastern India, with eight integrated steel manufacturing facilities spread across the states of West Bengal, Chhattisgarh, Orissa, and Jharkhand. The company's diverse portfolio of value-added products includes DRI (Sponge Iron), Pig Iron, Ferro Alloys, Alloy and Mild Steel Billets, Reinforcement Steel TMT Bars, Wire Rods, Ductile Iron Pipes, and Alloy and Mild Steel Heavy Rounds.

Jai Balaji Industries Stock Split

The Board of Directors "Approved Sub-division / split of each equity share of face value of Rs 10/- (Rupees Ten Only) each, fully paid-up, into 5 (Five) equity shares of face value of Rs 2 (Rupee Two Only) each, fully paid-up and accordingly approved amendment to the Capital Clause of Memorandum of Association of the Company & related Articles of Association of the Company, subject to the approval of Members and any other Regulatory Authority, if any. The Record Date for sub division / split of existing equity shares will be intimated in due course," said the company in a stock exchange filing.

Jai Balaji Industries Financials

For the second quarter of FY25, Jai Balaji Industries Ltd. reported a 24% decrease in net profit year over year, with profits dropping to Rs 153.2 crore from Rs 201.6 crore during the same time the previous year. Revenue from operations increased slightly by 0.6% to Rs 1,556.6 crore in Q2FY25 from Rs 1,546.6 crore in Q2FY24. With a 7% growth in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to Rs 228.3 crore from Rs 213.4 crore, the EBITDA margin rose to 14.7% from 13.8% on a YoY basis.

Mr Aditya Jajodia, Chairman and Managing Director said: "We are pleased to report that Jai Balaji has maintained healthy performance on a half yearly basis, amidst challenging market dynamics. On quarterly basis, we have been able to maintain the numbers when compared to YoY, however on QoQ basis there has been a decline owing to lower production and sales realisations of some of the finished steel products. We are very optimistic for the second half of FY25, owing to get better results on the strategic capex done by the company on its value added products. We continue to be focused on the value chain comprising of DI Pipes and Ferro Alloys, which shall continue to contribute more in the topline as well as bottom line of the company."

"Despite the complexities of the global operating environment and the pressure on commodity prices due to China's macroeconomic trends, our strategic focus on value-added products and operational efficiencies has enabled us to navigate these challenges effectively. We remain committed to leveraging our strengths to drive sustainable growth and meet the evolving demands of both domestic and international markets," he further added.

Mr Aditya Jajodia stated that "JBIL has maintained healthy performance on a half yearly basis, amidst challenging market dynamics. We are strongly progressing towards our aim to be Net Term Debt Free in the next 12 Months and are diligently working on capacity expansion of Dl Pipes and Ferro Alloys as per the plan. We are confident to achieve our Guidance for FY25 which includes Revenue growth of 25%-30% and EBITDA Margins of 17%-18%. We remain committed to leveraging our strengths to drive sustainable growth and meet the evolving demands of both domestic and international markets."

"Coming to H1FY25 performance, Revenue, EBITDA and PBT increased by 8%, 30% and 34% respectively. Quarterly performance on YoY basis has been decent however on QoQ basis we saw a decline owing to lower production and sales realizations of some of the finished steel products. We are highly optimistic about Fi2FY25, expecting improved results from the company's strategic capex in value-added products. Our focus remains on strengthening the value chain, particularly in DI Pipes and Ferro Alloys, which are set to make increasing contributions to both our top-line and bottom-line growth," he commented.

Jai Balaji Industries Share Price Target

"Jai Balaji Industries stock price is bearish on the Daily charts with strong resistance at 1040. A Daily close below support of 959 could lead to a target of 888 in the near term," A R Ramachandran, Independent Research Analyst commented.

Disclaimer

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