JITF Infra - Best Is Yet To Be Seen

JITF Infra (JITF) was recommended by us at Rs. 34.50 on 11th Aug, as Multibagger. Stock is now ruling at Rs.165, having given a return of over 360% in less than 2 months, and still counting. We called the stock a GOLDMINE, over the next 5 years, seen capable of giving 6x, 7x, 8x, 9x, 10x kind of returns in this period. Reasons of our bullish view is enumerated here.

Paid up equity of the company is tiny, just at Rs. 5.14 cr (FV Rs.2), with promoter stake of 63%, while 9% is held by the Institutional Investors & HNIs. This leaves, 31,457 retail shareholders, holding 27.93% stake, with 71.78 lakh shares, with average holding of 228 per shareholder, as at 30-6-21. Present M cap of Rs. 430 cr, is infact at Rs. 120 cr only, being free float. Infact, big volume of 3 to 4 lakh shares seen in a day, once in every week, is transfer of shares by Jobber to HNIs, as Jobber/Broker, collects the shares in a week and transfrer to HNIs, as per their appetite and demand.

It will be interesting to see the shareholding pattern of the company, as at 30-9-21, where retail shareholders may shrink to about 20,000, with below 48 lakh shares held by them. This implies that about 24 lakh shares (being 33% of free float) are already mopped up by HNIs & Non retail investors in last about 60 days. That is the reason we carried a piece on the stock, on 9th Sep, saying that Share Dhoondate Rah Jaoge”

Inspite of stock having given an excellent buying opportunity 4-5 times in last 2-3 weeks, many tentative, suspicious and over smart investors did not buy it, missing a Golden Opportunity. 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.

Stock may keep hitting UC, till first half of October as well, with share hitting Rs. 250 by then, largely to mop up additional 14 lakh shares (about 20% of free float) by HNIs and Savvy investors.  

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