Jai Balaji shares soared 14% today; here's what tech charts hint at

Shares of Jai Balaji Industries Ltd extended their strong upward run for a second straight session on Thursday, surging 14.33 per cent to touch an intraday high of Rs 134. At last check, the stock was trading 13.48 per cent higher at Rs 133. With this sharp rise, the scrip has jumped 31.49 per cent over the past two sessions. However, despite the recent gains, it remains down 26.77 per cent on a year-to-date (YTD) basis.

Jai Balaji logged heavy trading volume along with the price action as around 15.68 lakh shares changed hands on BSE. The figure was way more than the two-week average volume of 2.67 lakh shares. Turnover on the counter came at Rs 19.79 crore, commanding a market capitalisation of Rs 12,132.94 crore.

The company is optimistic about a strong FY26 following a challenging FY25, according to Jai Balaji's Q4 FY25 conference call highlights compiled by Arihant Capital Markets. The company reported a year-on-year (YoY) decline in revenue and EBITDA for FY25, citing sluggish market conditions. However, quarterly revenue showed signs of improvement and the firm maintained a healthy gross profit margin of 36 per cent, EBITDA margin of 14 per cent and Return on Equity (ROE) of 26 per cent.

A key highlight was the sharp reduction in net debt from Rs 871 crore in FY23 to Rs 221 crore in FY25, improving its net debt-to-EBITDA ratio to 0.25x, well below its target of 0.6x. The company expanded DI Pipes capacity to 5.04 lakh tonnes and targets 6 lakh tonnes by FY26. It aims to produce 4 lakh tonnes of DI Pipes in FY26 and expects 25–30 per cent revenue growth with EBITDA margins rising to 16–17%.

A trial investment of Rs 20–25 crore in OPVC pipes was announced to diversify its product base. Management remains hopeful of a demand recovery post-budget, driven by government infrastructure spending, especially under schemes like Jal Jeevan Mission. Export expansion, margin recovery and order inflows are expected to drive growth in the coming fiscal.

On the technical front, the scrip traded higher than the 5-day, 10-, 20-, 30-, 50-day and 100-day simple moving averages (SMAs) but lower than the 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 72.73. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock commands a P/E (price-to-earnings) ratio of 21.73 and a P/B (price-to-book) value of 6.29. Its earnings per share (EPS) stand at 6.12, with a return on equity (RoE) of 28.93 per cent. As per Trendlyne data, the stock has a beta of 1.17, indicating high volatility.

As of the March 2025 quarter, promoters held a 64.84 per cent stake in the company.