1:1 Bonus Share & FIIs Increase Stake: Multibagger Steel Tube Manufacturing Stock in Green on Quarterly Results (Q1FY25); Details Inside!

The stock gave multibagger returns of 325 per cent in 3 years and a whopping 1,820 per cent in 5 years.

JTL Industries Limited is amongst the fastest-growing steel tube manufacturers, with a Registered office located in Chandigarh. The company has manufacturing facilities in Punjab, Maharashtra, and Chhattisgarh. The cumulative capacity of the company is 5,86,000 MTPA for pipe manufacturing 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 amongst others which cater to diverse industrial and infrastructural applications. All the products are available in hot dip galvanized, pre-galvanized and without coated (MS black) grades.

Today, shares of JTL Industries Ltd gained 2.97 per cent to an intraday high of Rs 223.95 per share from its previous closing of Rs 217.50. The stock’s 52-week high is Rs 276.60 per share while its 52-week low is Rs 167.10 per share.

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. Sales volume itself jumped 10.8 per cent year-over-year to 85,674 MT, with value-added products contributing significantly at 25 per cent of the mix (21,261 MT).

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.

A key highlight of the quarter was the successful commercialization of the first phase of Nabha Steels and Metals in June. This acquisition strengthens JTL's backward integration strategy, allowing them to control more of the production process and potentially increase profitability. The first phase achieved strong sales of 10,726 MT. Looking ahead, JTL expects to further expand its capabilities and product offerings, targeting a 50 per cent contribution from value-added products in its total sales mix. They also plan to leverage their growing export volumes and high-quality products to capture opportunities in the global market.

In Q1FY25, FIIs increased their stake to 5.82 per cent compared to 4.48 per cent in March 2024. 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 325 per cent in 3 years and a whopping 1,820 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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