Monday, June 26, 2017

Jai Corp - Buy on declines

Company Background 

Jai Corp Limited is engaged in manufacturing polypropylene (PP) woven sacks fabrics and bags, and spinning yarn. The Company's segments include Steel, Plastic Processing, Spinning, Real Estate, Assets Management and Other. The Steel segment is engaged in processing and trading of cold rolled (CR), galvanized plain (GP) and galvanized corrugated (GC) coils and sheets. 

The Plastic Processing segment is engaged in manufacturing of woven sacks/fabrics jumbo bags, high density polyethylene (HDPE) twine, master batch, staple fibers and geotextiles at packaging units. The Spinning segment is engaged in manufacturing spun yarn at its units located at Vasona, Masat and Sarigam. 

The Real Estate segment is engaged in the development of land and buildings. The Assets Management segment consists of investment advisory services. The Others segment includes trusteeship and infrastructure activities, and non-banking finance activities of Jai Corp Finance & Holdings Ltd.

Stock Performance:

During the last 1 year the scrip has given following returns 

1 year - 20%
6 months - 26%
3 months - 12%
1 week - 1%

Recommendation :

Suggested buy range would be Rs.80 and exit around Rs.100.  The scrip is getting support at  80 level and facing resistance at 90  level

Sound financial management, good fundamentals, and great revenue visibility make it a compelling buy. 

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