Steel Stock in Focus as Company Enters into an MOU with RCI Industries & Technologies Ltd
The stock gave multibagger returns of 1,300 per cent in 5 years and a whopping 3,200 per cent in a decade.
JTL Industries Ltd has signed a Memorandum of Understanding (MOU) with RCI Industries & Technologies Limited. Under the agreement, RCI will produce up to 200 metric tons per month of copper and brass alloys for JTL on a job-work basis. RCI, a listed company with a market capitalization of Rs 9 crore, operates a 27,000 sq. meter manufacturing plant in Baddi, Himachal Pradesh. The plant has an installed capacity of 15,000 MTPA for copper and brass strips, with 6,000 MTPA available for value-added products.
This strategic move aligns with JTL's expansion goals, particularly in the defence sector. Recognizing India's push for self-reliance and indigenous manufacturing through initiatives like "Make in India," JTL aims to leverage this acquisition to supply critical non-ferrous metal products, including bullet casings, to the defence industry. The acquisition, pending NCLT approval, will bring the Baddi plant under JTL's complete ownership and is projected to significantly boost JTL's revenue by FY27.
About the Company
JTL Industries Limited, a rapidly expanding steel tube manufacturer with its registered office in Chandigarh, operates manufacturing facilities across Punjab, Maharashtra, and Chhattisgarh. Boasting a cumulative capacity of approximately 6,86,000 MTPA for pipe manufacturing and 3,00,000 MTPA for backward integration, the company is recognized as a Star Export House. JTL's diverse product portfolio includes GI Pipes, MS Black Pipes, hollow sections and Solar Structures, serving various industrial and infrastructural needs. These products are available in hot dip galvanized, pre-galvanized and uncoated (MS black) finishes.
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Talking about the financials, the company has a market cap of Rs 3,654 crore. According to Quarterly Results, the company reported net sales of Rs 451.43 crore and a net profit of Rs 24.94 crore in Q3FY25 while in Q3FY24, the company reported net sales of Rs 567.39 crore and a net profit of Rs 30.18 crore. Looking at the nine-month results, the company reported net sales of Rs 1,446.36 crore and a net profit of Rs 82 crore in 9MFY25 while in 9MFY24, the company reported net sales of Rs 1,574.29 crore and a net profit of Rs 83.47 crore. In its annual results, the company reported net sales of Rs 2,040.43 crore and a net profit of Rs 113.01 crore in FY24.
Earlier, the company's shares underwent an ex-traded stock split/sub-division, dividing each existing equity share with a face value of Rs 2 into two equity shares with a face value of Re 1 each. The ex-date for this sub-division was Thursday, November 14, 2024.
On Monday, shares of JTL Industries Ltd plunged 2.5 per cent to Rs 88.75 per share from its previous closing of Rs 91.02 per share. The stock’s 52-week high is Rs 138.30 per share while its 52-week low is Rs 78.41 per share. The stock gave multibagger returns of 1,300 per cent in 5 years and a whopping 3,200 per cent in a decade. In December 2024, DIIs increased their stake to 2.22 per cent compared to 1.64 per cent in September 2024. Investors should keep an eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.