1:1 Bonus Share: BNP Paribas bought 11,00,000 shares of this multibagger steel tube manufacturing company; Do you own it?
The stock gave multibagger returns of 260 per cent in 3 years and a whopping 1,900 per cent in 5 years.
In a strategic move, BNP Paribas Financial Markets bought 11,00,000 shares of JTL Industries Ltd at Rs 213 per share in a block deal and the seller was Morgan Stanley Asia (Singapore) Pte. In July 2024, FIIs increased their stake to 10.06 per cent compared to 5.82 per cent in June 2024.
The company's Securities Issue and Allotment Committee earlier approved the conversion of 1,04,445 warrants into equity shares on July 25, 2024, upon receipt of the full payment. Following this, a 1:1 bonus issue of the same number of shares was allotted to these shareholders. As a result, the company's total equity share capital increased to Rs 38,32,75,458 comprising 19,16,37,729 shares. These new shares rank equally with existing shares and the allotment adheres to SEBI regulations.
Today, shares of JTL Industries Ltd gained 2 per cent to Rs 217.80 per share from its previous closing of Rs 213.50. The stock’s 52-week high is Rs 276.60 per share while its 52-week low is Rs 167.10 per share.
About the Company
JTL Industries Limited, a leading steel tube manufacturer with headquarters in Chandigarh, boasts a significant production capacity of 5,86,000 MTPA for pipes and 3,00,000 MTPA for backward integration across its facilities in Punjab, Maharashtra, and Chhattisgarh. The company offers a diverse range of products including GI pipes, MS pipes, hollow sections, and solar structures, all available in galvanized, pre-galvanized, and black steel grades, catering to various industrial and infrastructure needs. JTL's recent successful acquisition of Nabha Steels and Metals strengthens its backward integration strategy, allowing for greater control over production and potentially higher profits. With strong initial sales from Nabha and a focus on expanding value-added products to contribute 50 per cent of total sales, JTL Industries Limited is positioned for further growth, leveraging its high-quality products and growing export volumes to capture opportunities in the global market.
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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.
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 260 per cent in 3 years and a whopping 1,900 per cent in 5 years. Investors should keep an eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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