4,800 per cent returns & FIIs increase stake: Promoters were allocated 2,00,00,000 shares of this multibagger stock via preferential issue after stellar Q3FY24 & 9MFY24 results!

The stock gave multibagger returns of over 1,000 per cent in 3 years and a whopping 4,800 per cent in a decade.

JTL Industries Ltd announced that the Securities Issue and Allotment Committee of the company in their meeting held on Friday, February 02, 2024, considered and approved the allotment of 2,50,00,000 fully convertible warrants, carrying a right exercisable by the warrant holder to subscribe to one equity share per warrant, to persons belonging to “Promoter/ Promoter Group” and “Non-Promoter/Public Category” on preferential basis at an issue price of Rs 270 per warrant, after receipt of the stipulated amount i.e. 25 per cent of the issue price as subscription amount.

Promoters (Mr Dhruv Singla, Mr Rakesh Garg, Mrs Nikita Singla and Mr Pranav Singla) each were allocated 50,00,000 shares aggregating to a total of 2,00,00,000 shares and non-promoter (YVS Construction Pvt Ltd) was allocated 50,00,000 shares.

Today, shares of JTL Industries Limited surged 2.41 per cent to a fresh new 52-week high of Rs 276 per share from its previous closing of Rs 269.5.

Founded in 1991, JTL Industries Ltd. has quickly risen to become a leading steel tube manufacturer in India, boasting 4 state-of-the-art facilities, 10 brands, and a diverse product range serving 7 industries across B2B, B2G, OEM, and international markets. With 1,000+ SKUs, 600+ skilled employees, and a reach spanning 800+ dealers and 20+ countries, JTL is primed for future expansion thanks to its vast landbank and commitment to innovation.

According to Quarterly Results, the net sales increased by 65.26 per cent to Rs 567.35 crore and net profit increased by 47.24 per cent to Rs 30.18 crore in Q3FY24 compared to Q3FY23. According to the nine-month results (9MFY24), the net sales increased by 46.1 per cent to Rs 1,574.3 crore and net profit increased by 56.1 per cent to Rs 83.5 crore in 9M FY24 compared to 9M FY23. The net sales increased by 15 per cent to Rs 1,547 crore and net profit increased by 48 per cent to Rs 90 crore in FY23 compared to FY22.

JTL Industries blew past all previous sales records in Q3FY24, achieving a record-breaking volume of 1,00,905 MT thanks to skyrocketing demand for steel pipes and tubes. This 76 per cent year-over-year surge extends to year-to-date performance, exceeding the entire FY23 volume in just 9 months with a 62 per cent YoY jump. To capitalize on this momentum, JTL is investing a whopping Rs 1310 crore in a mega-expansion project that will significantly boost its manufacturing capacity and diversify its offerings, solidifying its position as the undisputed leader in the structural steel market.

Foreign investors (FIIs) significantly boosted their ownership in the company during Q2FY24, nearly quadrupling their stake from 0.72 per cent to 2.67 per cent. Notably, BNP Paribas Arbitrage-ODI holds a significant 1.40 per cent stake. The company also rewarded shareholders with a 1:1 bonus share issue and a final dividend of Rs 0.2 per share, distributed on September 7, 2023 and August 4, 2023, respectively.

The stock gave multibagger returns of over 1,000 per cent in 3 years and a whopping 4,800 per cent in a decade. Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.