1:1 bonus share and promoter & FIIs increase stake: Heavy buying in this debt-free steel tube manufacturer stock; spurt in volume by more than 5 times on BSE
The stock gave multibagger returns of 340 per cent in 3 years and a whopping 1,380 per cent in 5 years.
JTL Industries Ltd, a leading manufacturer in India, supplies steel tubes, pipes, and related products. Their offerings include ERW pipes, galvanized pipes, and even solar structures. Operating across various industries like infrastructure and energy, JTL boasts a wide client base including Tata Power, Ashok Leyland, and Siemens. With a current capacity of nearly 5,90,000 MTPA and plans to expand to 1 million MTPA by 2025, they are continuously focusing on increasing the production of value-added products.
Today, shares of JTL Industries Ltd gained 7.51 per cent to an intraday high of Rs 224.70 per share from its previous closing of Rs 209. The stock’s 52-week high is Rs 276.90 per share while its 52-week low is Rs 150.25 per share. The shares of the company saw a spurt in volume by more than 5 times on BSE.
Earlier, the company made a significant move to expand its operations by acquiring a controlling stake in Nabha Steels and Metals, a Punjab-based manufacturer of steel products like coils and billets. This acquisition strategically strengthens JTL's backward integration, which involves taking control of suppliers. JTL will nearly double its coil production capacity from 1,50,000 tonnes to 2,50,000 tonnes and gain an additional 1,00,000 tonnes of long product capacity. Importantly, JTL's backward integration will now be geographically spread across Chhattisgarh and Punjab. The acquisition cost JTL Rs 70 crore for a 67 per cent stake and is expected to be finalised within a month.
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Additionally, the company's promoter, Mr Pranav Singla bought 3,00,000 shares or 0.17 per cent via open market as per disclosure available on the exchange. His stake increased from 1.07 per cent to 1.24 per cent. Additionally, in February 2024, FIIs bought 68,63,325 shares and increased their stake to 4.62 per cent compared to 1.62 per cent in December 2023.
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.
On September 07, 2023, the shares of the company ex-traded bonus share in the ratio 1:1 and earlier to it i.e., on August 04, 2021, the shares of the company ex-traded stock split of equity shares from a face value of Rs 10 to a face value of Rs 2 each. The stock gave multibagger returns of 340 per cent in 3 years and a whopping 1,380 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.
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