Jai Balaji Industries Ltd, a Calcutta-based secondary steel producer, is going to split its share in a 1:5 ratio to increase liquidity of the stock on the bourses.
The company’s board, which met on Tuesday to finalise its second quarter results, approved the subdivision of shares of face value ₹10 each into five equity shares of face value ₹2.
The stock, which has stunned the market with its meteoric rise of close to 13 times in the last 18 months, closed at ₹1,005.4 on the BSE on Tuesday, down 1.55 per cent or ₹15.8.
The company, which has a manufacturing base in Bengal, has a market capitalisation of ₹18,344 crore and a price earning ratio of 20.
Muted Q2
Jai Balaji posted a 24 per cent fall in the net profit in the Q2FY25 at ₹153.16 crore compared with ₹201.55 crore a year ago due to deferred tax provision. Revenue from operations went up marginally by 0.64 per cent to ₹1,556.57 crore from ₹1,546.63 crore a year ago.
Aditya Jajodia, chairman and managing director of the company, said, “On a quarterly basis, we have been able to maintain the numbers when compared with YoY. However, on a QoQ basis there has been a decline owing to lower production and sales realisations of some of the finished steel products.”
He exuded confidence about the second half owing to the strategic capex by the company on value added products such as ductile iron pipes.
