JITF Infralogistics - Seen A GOLDMINE

By Research Desk
about 3 years ago

JITF Infralogistics (JITF) was recommended by us at Rs. 34.50 on 11th Aug, as Multibagger, with target given of Rs. 43, which met yesterday, with share now ruling at Rs. 44, with locked in UC. Obviously, such stocks can only be bought by standing in queue of UC Buyers for many days. We wish to introduce this company, seen by us as a GOLDMINE, over next 5 years, as it is seen capable of giving 4x,5x, 6x, 7x, 8x ........ kind of returns in this period.

JITF is redefining existing norms in the areas of Water, Wastewater & Solid Waste Management, Logistics and Transportation Equipment Fabrication through its subsidiaries.

This is an O.P. Jindal Group company, with paid up equity of just Rs. 5.14 cr (FV Rs.2), with promoter stake of 63%, with 28% stake held by 31k shareholders. Institutional holding is just at 5%. Hence, m cap is at Rs. 115 crore only.  Difficult to believe that an OP Jindal Group company can rule at such low valuations, when the Group has companies like JSW Steel, JSW Energy, Jindal Steel & Power , Jindal Saw, Jindal Stainless and Jindal Stainless (Hisar). 4 sons and grand children of Late OP Jindal, with their investment companies, are promoter shareholders of the company.

For FY21, JITF had an income of Rs. 938 cr, with loss before tax of Rs. 141 cr, due to interest cost of Rs. 216 cr, as company is building its own Fixed Assets, of Rs. 1,250 cr, as at 31-3-21.  Due to low equity and negative net worth, company borrowed Rs. 2,100 cr. Its main vertical of Water Infrastructure had an income of Rs. 622 cr and EBIT of Rs.70 cr, for FY21,which are even better for Q1, with Income at Rs.150 cr, on which EBIT is at Rs. 22.24 cr. Hence, Q1 numbers were seen even better, with mrgin seen rising overall. Loss before tax for Q1 is at Rs. 35 cr, with interest at Rs. 61 cr.

We are known for identifying such Hidden Gems, which will now be recommended by Funds, Experts and Media.
Such Hidden Gem is seen available once in 10 years, which should be bought and just forget it, leaving it for the next generation.  

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


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