JITF Infralogistic - Float will move from weak to strong hands now

JITF Infra (JITF) was recommended by us at Rs. 34.50 on 11th Aug, as Multibagger. Stock after having moved to Rs. 337 on Monday, has been hitting LC for last 2 days, is now ruling at Rs. 290, having given a return of over 725%  (yes read it correctly, it is over 7x) in about 3 months. However, on low volume, stock is seen having corrected. Few members here are seen desperate, as such members can only remain desperate, as they were keen to buy at UC  and now seen dancing without music, as stock is hitting LC. Similar kind of behaviour was seen by them in case of CG Power and Vedanta as well, when both stock fell by about 15%, after having risen 200% to 500% post our buy call. Such invetsors can never make money, while make noise, which confuses other savvy investors as well.

Paid up equity of the company is tiny, just at Rs. 5.14 cr (FV Rs.2), with promoter stake of 63%, while over 5% is held by the Institutional Investors. This left 31,457 retail shareholders, holding 27.93% stake, with 71.78 lakh shares, as at 30-6-21. Now, this retail float got reduced to just 70 lakh shares, as at 30-9-21, still held by 31,457 investors.Obviously this will not get liked by the informed circles & HNIs, as they were not able to buy big lot. So, volatility is created by them only, to make weak hands exit, on seeing stock hitting LC. Also, these Big investors will not buy at Rs. 350, with stock having risen from Rs.35 in last 3 months.  Present M cap of Rs.750 cr, is seen coming to reasonable levels. Infact now free float is just of Rs.200 cr only, which will surely get mopped up at some levels, in view of huge growth prospects seen for the company, belonging to OP Jindal Group.

We have staed in the past as well, that existing retail investors, few of them being suspicious and impulsive, will sell and exit, only when stock will hit LC, which is seen now, and may see it hiting LC for some more time.But fate of the stock is seen bullish, as at some levels, buying which will come, will see it hitting UC again hereafter. we gave a target of Rs. 500 by March 22 and sticking to it. This may also be a strategy of the informed circles, to shake such investors and mop up their shares. Because, eventually company can also turn out to be a Rs. 10,000 cr m cap company, in the next 3 years or so.

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.

So, those who are holding it, are either advised to exit, if uanble to face volatility, or hold to see Bigger Picture.

Also, those who could not buy it till now, can buy now, with MT view.

Do not try to time out the buying at bottom, which can never be done by a market pundit as well.

Investors, unable to face this tactical volatility or generally seen dancing on without music, should avoid buying.

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