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Jai Balaji Industries
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Jai Balaji Industries Ltd, the flagship company of Jai Balaji Group is one of the largest steel producers in the private sector in Eastern India. The company is an integrated steel manufacturer. Their products includes sponge iron, pig iron, reinforcement steel TMT bars, alloy and mild steel ingots & wire rod and carbon, alloy & mild steel heavy rounds. They are having five manufacturing facilities located at Durgapur and Raniganj in West Bengal and Durg in Chhattisgarh.
The company also manufactures Thermex TMT Bars, under the brand name Balaji Shakti, which is a respected name among civil contractors and real estate developers for quality steel. In addition, they have supplied steel to various projects of National importance undertaken by National Hydro-Electric Power Corporation Ltd., National Highway Authorities of India, etc.
Jai Balaji Industries Ltd was incorporated in the year 1999 as Jai Balaji Sponge Ltd. The company set up their first Mini DRI Plant in West Bengal. In the year 2000, they established their first sponge iron plant with the initial capacity of 50 tonnes per day. In October 2003, the company made an initial public offer of one-crore equity shares having face value of Rs 10 each.
In September 2005, the company commissioned a power plant with installed capacity of 12 MW per annum and a ferro alloy plant with installed capacity of 30,000 MT per annum at Ranigunj in West Bengal.
During the year 2006-07, the company increased the capacity of steel bars/rods by 180,000 tonne per annum and billet/MS ingots by 58,806 tonne per annum. In addition, they commissioned a 40 MW captive power plant during the year. Shri Ramrupai Balaji Steels Ltd amalgamated with the company with effect from April 1, 2006, which had a sponge iron plant with the capacity 120,000 tonne per annum, blast furnace with the capacity 80,500 tonne per annum, steel bars/rods with the capacity 80,000 tonne per annum and billet/MS ingots with the capacity 176,418 tonne per annum.
In March 2007, the company commissioned the blast furnace with the installed capacity of 28,750 MT per annum to produce pig iron. They changed the name of the company from Jai Balaji Sponge Ltd to Jai Balaji Industries Ltd with effect from June 22, 2007.
During the year 2007-08, the company acquired the steel division of HEG Ltd in Chhattisgarh having a sponge iron plant with the capacity of 120,000 MT per annum, steel-melting shop with the capacity of 100,000 MT per annum and a 12.8 MW captive power plant.
In October 2007, the company acquired 100% shareholding of Nilachal Iron & Power Ltd in Jharkhand having a sponge iron plant with the capacity of 100,000 MT per annum. The company signed a Memorandum of Agreement with the Government of West Bengal for setting up an integrated steel plant of 5 million tonnes per annum capacity, a cement plant of 3 million tonnes per annum capacity and a captive power plant of 1,215 MW capacity in Purulia, West Bengal at a total investment of Rs 16,000 crore.
During the year 2008-09, the company entered into a joint venture agreement with JSW Steel Ltd and Bhushan Power & Steel Ltd and formed a company namely Rohne Coal Company Pvt Ltd to acquire 6.90% stake in a coal block. In June 2, 2008, the company listed their equity shares on Bombay Stock Exchange Ltd.
In August 2008, the company signed an MoU with the Government of Chhattisgarh for setting up an integrated steel plant in Chhattisgarh and in September 2008, they signed another MoU with Government of Chhattisgarh and Chhattisgarh State Electricity Board for setting up a 600 MW thermal power project in Chhattisgarh.
In September 15, 2008, the sinter plant at Durgapur with the installed capacity of 6.08 lakh MTPA commenced its production and in March 18, 2008, the electric arc furnace plant at Durgapur with the installed capacity of 4.33 lakh MTPA commenced its production. The company commissioned ferro alloy plant with a capacity of 0.25 lakh MTPA and started trial production with effect June 02, 2009.
The Ferro Alloy plant at Durgapur with a capacity of 0.25 lacs MTPA commenced commercial production w.e.f. 17th August, 2009. The Ductile Iron Pipe Plant at Durgapur with a capacity of 2.40 lacs MTPA had commenced commercial production with effect from November 3, 2010.
The Company had three wholly owned subsidiaries namely, Nilachal Iron & Power Limited, Jai Balaji Steels (Purulia) Limited & Jai Balaji Energy (Purulia) Limited. Both Jai Balaji Steels (Purulia) Limited & Jai Balaji Energy (Purulia) Limited were incorporated on 1st November, 2010.
The DRI Plant of 60000 MT & coal washery in subsidiary company M/s Nilachal Iron & Power Limited was commissioned in 2012. The project for expansion of 350000 MTPA Coke Oven Plant along with Waste Heat Recovery Boiler of 80 TPH got completed in 2012-13.
Jai Balaji Industries share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Jai Balaji Industries indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Jai Balaji Industries is valued compared to its competitors.
Jai Balaji Industries PE ratio helps investors understand what is the market value of each stock compared to Jai Balaji Industries 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Jai Balaji Industries evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Jai Balaji Industries generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Jai Balaji Industries in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Jai Balaji Industries shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Jai Balaji Industries compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Jai Balaji Industries over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Jai Balaji Industries helps investors get an insight into when they can enter or exit the stock. Key components of Jai Balaji Industries Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Jai Balaji Industries shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Jai Balaji Industries ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Jai Balaji Industries provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Jai Balaji Industries highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Jai Balaji Industries .
The balance sheet presents a snapshot of Jai Balaji Industries ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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