There has been a buzz about the new Navi Mumbai International Airport since a long time now. Navi Mumbai International Airport (NMIA) is a greenfield international airport being built on the National Highway (NH) 4B near Panvel, approximately 35km from Mumbai’s existing Chhatrapati Shivaji International Airport (CSIA). The new airport will be equipped with modern amenities and facilities for domestic and international passengers, as well as the capacity to transport cargo. The airport is planned to be built in four phases through 2032. The ground-breaking ceremony of the project was held in February 2018.
You must be wondering what the NMIA has to do with the potential multibagger we've spotted. Well, the stock we'll be discussing about here is Jai Corp. Jai Corp along with the expansion of its plastic processing business, it is also focusing and investing in emerging opportunities like developing SEZs, infrastructure, venture capital and real estate. Jai Corp has invested in 2 Multi product Special Economic Zones near Mumbai - Navi Mumbai SEZ (NMSEZ) and Mumbai SEZ (MSEZ). Both the SEZs are being conceived and developed as a futuristic business hub and gateway for trade, commerce, industry, service and tourism.
Both SEZs are strategically located in Maharashtra. Its inherent locational advantages are:
Close proximity to Mumbai, financial and commercial capital of India,
Access to Jawaharlal Nehru Port Trust, India's largest and modern port,
Connectivity through existing rail links and road network,
Close to new Navi Mumbai International Airport.
Speaking more about the landbank, Jai Corp has a landbank of over 5000 acres and the land in Mumbai or around the airport is approximately valued at Rs 2-3 crores per acre. Jai Corp presently has a market cap of just 2,168 crores which may soar to a great extent with the deep value of its SEZs in years to come. We see Jai Corp hitting Rs 315/share and Rs 505/share respectively in long run as development of the NMIA progresses.
To recall, we had similarly spotted another stock named RIIL majorly because of the same reason we've presently spotted Jai Corp back in May, 2021 at Rs 444 for a target price of Rs 1300. The stock hit new 52 week high of Rs 1202.90 post our analysis in less than a year appreciating investor's wealth by over 170%.
Jai Corp Technical Chart: 1M (Monthly)
There is a rounding bottom type formation in the making on the monthly chart of Jai Corp which is a bullish technical chart pattern. The stock needs to take out crucial resistance placed at Rs 175 on a closing basis to head higher towards its initial target price of Rs 315. If the stock trades consistently over Rs 315, it will indicate breakout of the bullish rounding bottom pattern formation which in turn will take the stock higher upto Rs 505. Reiterating, breaching crucial resistance placed at Rs 175 initially is a prerequisite for the stock to achieve the stated targets of Rs 315 and Rs 505 respectively. (Refer to the disclaimer at the bottom of the blog).
Current Market Price: 121.50
Accumulation Range: 101 - 122
Crucial Resistance: Rs 175
Preferred mode of investment: SIP
Target Price 1: Rs 315 (Potential Upside: 160% approximately)
Target Price 2: Rs 505 (Potential Upside: 317% approximately)
Duration: 1.5 - 3 years.
Why is SIP mode of investment attractive as compared to lumpsum investment?
--> Lighter on wallet
--> Enables rupee cost averaging
--> Makes market timing irrelevant
Disclaimer: We are not SEBI Registered. The above mentioned analysis is not a recommendation and is mentioned here for educational purposes only. Do consult your financial advisor before making any decision regarding your investments.