2,400 Per Cent Multibagger Returns: Steel Tube Manufacturing Company Expands Copper Products Portfolio with RCI Industries & Technologies Ltd Acquisition
The stock gave multibagger returns of 180 per cent in 3 years and a whopping 2,400 per cent in 5 years.
JTL Industries Ltd announced that its resolution plan for RCI Industries & Technologies Limited has been approved by the Committee of Creditors. This strategic acquisition marks a significant milestone for JTL, expanding its footprint in the copper products market. RCI's extensive experience and manufacturing capabilities will complement JTL's existing operations, allowing us to offer a wider range of high-quality products to our customers. The acquisition is subject to regulatory approvals, and we anticipate closing the transaction soon.
RCI Industries is a well-established player in the Indian copper products market, known for its innovative products and strong customer relationships. With its manufacturing facility in Baddi, Himachal Pradesh, RCI has a proven track record of delivering exceptional quality and reliability. JTL's acquisition of RCI will not only strengthen our market position but also provide new opportunities for growth and expansion. We are confident that this strategic move will benefit both companies and create value for our shareholders.
Today, shares of JTL Industries Ltd gained 4.33 per cent to Rs 220.20 per share from its previous closing of Rs 211.05. The stock’s 52-week high is Rs 276.60 per share while its 52-week low is Rs 167.10 per share.
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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.
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 180 per cent in 3 years and a whopping 2,400 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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