Bonus Shares & Stock Split Likely To Be Announced: Steel Tube Manufacturer Has Entered Into An Agreement With Ernst & Young LLP (EY)

The stock gave multibagger returns of 2,450 per cent in 5 years and a whopping 4,000 per cent in a decade.

JTL Industries Limited is pleased to announce that it has entered into an Investor Relations Support Service Agreement on September 24, 2024, with Ernst & Young LLP. This agreement is for the purpose of providing comprehensive investor relations services to enhance the Company's standing in the capital market. The key details of this agreement, as per Regulation 30 of the Listing Regulations, are as follows: 1. Parties: Ernst & Young LLP. 2. Purpose: To provide general investor relations services to support the Company's positioning in the capital market.

Additionally, JTL Industries Limited has announced that its Board of Directors meeting is scheduled for Thursday, October 3, 2024. The agenda includes several key proposals: 1. Sub-division or stock split of equity shares with a face value of Rs 2 each. Issuance of bonus shares to existing equity shareholders. Increase in the authorized share capital of the company.

Furthermore, the company has significantly expanded its production capabilities with the successful commissioning of a new Galvanized Iron (GI) plant in Mangaon, Maharashtra. This state-of-the-art facility adds a substantial 5,000 metric tons of capacity per quarter, enabling JTL to meet the growing 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. 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 15% increase in demand for steel products in recent years.

 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.

On Wednesday, shares of JTL Industries Ltd surged 0.99 per cent to an intraday high of Rs 241.75 per share from its previous closing of Rs 219.90. 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 2,450 per cent in 5 years and a whopping 4,000 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.