LIC-Backed Small-Cap Multibagger Inks Deal with Anticipated Annual Earnings of Rs 12-18 Crore

In the bustling landscape of the Indian stock market, where numbers and percentages dance to the rhythm of economic winds, Jaykay Enterprises Ltd is stealing the spotlight with a mesmerizing performance. As the Nifty and Sensex play a cautious tango with modest gains, Jaykay Enterprises has taken center stage, soaring by an impressive 4.41% to reach Rs 157.60. So, what’s the secret behind this remarkable upswing?

The tale begins with a strategic move by Jaykay’s wholly-owned subsidiary, JK Digital & Advanced Systems Private Limited. This dynamic arm of the company has executed a ground breaking tripartite Manufacturing Agreement with Meril Innovations Private Limited, based in Gujarat. Meril Innovations, a prominent player in the MedTech Solutions arena, is set to join forces with JK Digital and EOS Electro Optical Systems India Private Limited, a subsidiary of EOS GmBH of Germany.

Revolutionizing MedTech Through 3D Printing: A Tripartite Agreement Unveiled

The heart of the matter lies in the tripartite agreement that aims to revolutionize the production of Medical Devices/Implants through the cutting-edge technology of 3D printing. JK Digital will step into the limelight by installing and operating 3D printers at Meril’s state-of-the-art facility in Gujarat. This partnership is not just about technology; it’s about the amalgamation of expertise, as EOS will provide the necessary technical assistance and support to JK Digital for the 3D printing operations.

The key purpose of this agreement is clear – to enhance Meril’s capabilities in manufacturing orthopedic implants using the power of 3D printing. With JK Digital and EOS as allies, Meril gains access to a world of possibilities in the realm of implant manufacturing.

Key Terms That Define the Partnership’s Horizon

The agreement is no fleeting affair; it spans a 15-year initial term, with the option for mutual extension. JK Digital is slated to receive estimated annual revenues ranging from Rs 12-18 crore, a testament to the substantial value anticipated from this collaboration. The specified 3D printers will find a new home at Meril’s facility, and EOS will play a crucial role by providing the necessary technology and know-how to support JK Digital’s on-site 3D printing operations.

Meril, in turn, gains a significant boost in its 3D printing capacity for medical implant manufacturing, solidifying its position as a leader in the MedTech space.

Ownership Landscape and Stock Market Marvels

As we dive into the ownership patterns, the promoters hold a commanding 56.28% of the company’s shares. What adds an intriguing twist to the tale is the revelation that as of December 2023, Life Insurance Corporation of India holds 2.32% shares, showcasing the trust that institutional giants place in Jaykay Enterprises. Foreign Institutional Investors (FIIs) also have a stake, albeit a modest 0.15%.

The stock, in the true spirit of a market maverick, has delivered multibagger returns over the past year, witnessing a staggering 187% surge. The stock’s current Price-to-Earnings (PE) ratio stands at 91.8x, underlining the market’s confidence in the company’s growth trajectory.

Read more: 9 Stocks Blessed with Ayodhya’s Golden Touch

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.