DIIs Increase Stake: Steel Stock Under Rs 100 In Green As Company Sets Up Plant To Enter A New Product Category - Lattice Towers
The stock gave multibagger returns of 1,300 per cent in 5 years and a whopping 3,900 per cent in a decade.
JTL Industries, a rapidly expanding steel tube manufacturer specializing in various types of pipes and hollow structures, has announced its foray into a new product category: Lattice Towers. This strategic move represents a significant expansion for the company. A new plant is being established in Derabassi, Punjab, to facilitate this venture.
The Derabassi plant, a greenfield project built on a newly acquired 12-acre site, will have a production capacity of 1,500 tons of lattice towers per month. Operations are expected to commence in the second half of the financial year 2026. These lattice towers have key applications within the Indigenous Train Collision Avoidance System (Kavach), contributing to the Indian Railways' "Zero Accidents" goal. Furthermore, these towers also serve crucial functions in the telecommunications, steel building materials, and railway sectors.
Commenting on the above development, the management of the Company said: “We are delighted to announce our entry in a new product category and the addition of our new plant. Lattice Towers are of immense importance in Telecommunications, Steel Building Materials & Railways and will contribute significantly to our value-added portfolio. This investment will aid in not just entering new sectors but will also expand our supply base, strengthening our competitive edge. The abovementioned sector possesses enormous potential and stands among the many beneficiaries of public & private sector investments in the years to come. Our efforts aim to continually position ourselves for growth and excellence. JTL is committed to providing exceptional value to our customers and stakeholders, and we look forward to leveraging this development to drive further success in."
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About the Company
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 6,86,000 MTPA for pipe manufacturing. 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.
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 Saturday, shares of JTL Industries Ltd surged 2.5 per cent to Rs 99.19 per share from its previous closing of Rs 96.79 per share. The stock’s 52-week high is Rs 138.30 per share while its 52-week low is Rs 83.55 per share. The stock gave multibagger returns of 1,300 per cent in 5 years and a whopping 3,900 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.