1,730 per cent returns: This multibagger small-cap company allots 8,48,52,092 bonus shares in 1:1 ratio; do you own it?

The stock gave multibagger returns of 115 per cent returns in just 1 year and a whopping 1,730 per cent in 3 years.

JTL Industries Ltd informed that the Board of Directors of the company in their meeting held today has made an allotment of 8,48,52,092 fully paid-up bonus equity shares of Rs 2 each in the ratio 1:1, i.e., 1 equity share of Rs 1 each for every 1 equity share of Rs 2 each held by the shareholders of the company as on the record date (September 07, 2023).

The Board of Directors of the company have also reserved 1,22,98,350 bonus shares for 1,22,98,350 outstanding warrants as of record date (i.e., September 07, 2023) pending for conversion into the equivalent number of equity shares, in the ratio of 1:1 (i.e., 1 equity shares for every 1 equity shares held).

Consequent to the aforesaid allotment of bonus shares, the paid-up equity share capital of the company stands increased from Rs 16,97,04,184 divided into 8,48,52,092 equity shares of Rs 2 each to Rs 33,94,08,368 divided into 16,97,04,184 equity shares of Rs 2 each.

On Monday, shares of JTL Industries Ltd surged 0.21 per cent to Rs 213.7 per share from its previous closing of Rs 213.25. The stock’s intraday high of Rs 217.9 and an intraday low of Rs 209.

JTL Industries Limited manufactures steel products. The company offers electric resistance welded steel pipes, tubes, hollow sections, and structural steel products. JTL Industries serves customers worldwide. The company's product offerings include Electric Resistance Welding (ERW) pipes, galvanized pipes, solar structures, etc.

Quarterly Results: The net sales increased by 37.16 per cent to Rs 504.80 crore, operating profit increased by 105.25 per cent to Rs 36.30 crore and net profit increased by 110.12 per cent to Rs 25.37 crore in Q1FY24 over Q1FY23.

The company has a market cap of over Rs 3,500 crore. The stock has an ROE of 30.1 per cent and a ROCE of 34.6 per cent. The promoters of the company have increased their stake by 12.6 per cent over the last quarter.

The stock gave multibagger returns of 115 per cent returns in just 1 year and a whopping 1,730 per cent in 3 years. Investors should keep an eye on this Small-Cap stock.

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