1:1 Bonus Share & 3,740 Per Cent Multibagger Returns: Steel Stock In Focus as Company Boosts Capacity by 5,000 MT per Quarter for Enhanced Output
The stock gave multibagger returns of 2,785 per cent in 5 years and a whopping 3,740 per cent in a decade.
JTL Industries Limited has significantly expanded its production capacity with the successful commissioning of its new Galvanized Iron (GI) plant in Mangaon, Maharashtra. The state-of-the-art facility adds a substantial 5,000 metric tons of capacity per quarter, enabling JTL to meet the increasing demand for high-quality steel products. This expansion aligns with the company's strategic goal of increasing its Value-Added Product (VAP) share to 40-42 per cent by the end of the year, positioning JTL as a leading player in the steel industry.
The new GI plant is equipped with advanced technology, including the recently installed Direct Forming Technology (DFT), which is expected to further enhance production efficiency and product quality. This investment in cutting-edge equipment demonstrates JTL's commitment to innovation and its unwavering focus on delivering superior products to its customers. The expansion also reflects the company's confidence in the long-term growth prospects of the steel sector, as evidenced by the [specific percentage] increase in demand for steel products in recent years.
Additionally, the company successfully raised funds through a preferential issue on March 3, 2023, to support its expansion plans. The company, renowned for its high-quality steel products, utilized the proceeds to increase its production capacity. The issue involved the allotment of equity shares to both public and non-promoter categories, consisting of warrants and bonus shares. JTL's strategic move has enabled it to meet its production goals and reinforce its position as a leading player in the steel industry. The company's production facilities are spread across Punjab, Maharashtra, and Chhattisgarh, catering to various industrial and infrastructure needs with a diverse product range. Recent acquisitions of Nabha Steels and RCI Industries have strengthened JTL's backward integration and expanded its market reach, positioning it for further growth
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About the Company
JTL Industries Limited is amongst the fastest-growing steel tube manufacturers, and its registered office is in Chandigarh. The company has manufacturing facilities in Punjab, Maharashtra, and Chhattisgarh. The cumulative capacity of the company is 5,86,000 MTPA for Steel Pipes and ~3,00,000 MTPA is backward integration. The company is a recognized Star Export House, and its product offering includes GI Pipes, MS Black Pipes, hollow sections, and Solar Structures, which cater to diverse industrial and infrastructural applications. All the products are available in hot dip galvanised, pre-galvanized and without coated (MS black) grades.
JTL Industries, a manufacturer of steel tubes, reported solid financial results for Q1FY25. Revenue grew to Rs 515.38 crore from Rs 504.80 crore in the same period last year, reflecting a 2.10 per cent increase. This growth was driven by factors like strategic market expansion, increased product demand and higher sales volumes. JTL's profitability also improved in Q1FY25. EBITDA rose 20.8 per cent to Rs 43.86 crore, leading to an EBITDA margin of 8.50 per cent, up from 7.20 per cent in the previous year. This improvement reflects JTL's focus on high-margin products and operational efficiency. Net profit also grew by 21.0 per cent to Rs 30.70 crore.
Today, shares of JTL Industries Ltd surged 0.90 per cent to Rs 232.55 per share from its previous closing of Rs 230.55. The stock’s 52-week high is Rs 276.60 per share while its 52-week low is Rs 167.10 per share. The stock gave multibagger returns of 2,785 per cent in 5 years and a whopping 3,740 per cent in a decade.
Investors should keep an eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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