Multibagger Steel Tube Manufacturer Stock In Green As Company Expands Raipur Plant Capacity to 2,00,000 MTPA, Accelerating Growth Towards 1 Million MTPA Goal

The stock gave multibagger returns of 2,300 per cent in 5 years and a whopping 4,300 per cent in a decade.

On Wednesday, shares of JTL Industries Ltd surged 5.75 per cent to an intraday high of Rs 212.25 per share from its previous closing of Rs 200.70. 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 Ltd announced the successful expansion of its Raipur facility’s capacity from 1,00,000 metric tons per annum (MTPA) to 2,00,000 MTPA. With this addition, the company’s cumulative pipe manufacturing capacity has now reached 6,86,000 MTPA. This enhancement reflects JTL’s ongoing commitment to achieving a production capacity of 1 million MTPA by the end of the year.

Key Highlights of the Expansion

• Increased Capacity: The Raipur facility’s capacity has doubled from 100,000 MTPA to 200,000 MTPA, significantly enhancing our production capabilities to meet growing market demands.
• Expanded Product Range: The size range at the Raipur plant has expanded from up to 4 inches to 8 inches, enabling the production of larger and more varied tubes and pipes to better serve diverse industries.
• New Product SKUs: With this expansion, the Raipur plant will add 200 new stock-keeping units (SKUs), reinforcing our ability to offer a wide array of high-quality steel products.
• Value-Added Products: Consistent with JTL’s strategic focus, 50% of Raipur's enhanced capacity will be dedicated to value-added products, aligning with our goal of elevating our value-added product (VAP) share.
• Strategic Location: Situated in a location that ensures proximity to raw materials and facilitates cost-effective backward integration, Raipur plays a key role in supporting JTL’s strategy for competitive pricing and operational efficiency.

Additionally, the Board of Directors of JTL Industries Ltd discussed and approved the sub-division of each existing Equity Share with a face value of Rs 2 into two equity shares with a face value of Re 1 each. This change is contingent upon shareholder approval, which will be sought at an upcoming extraordinary general meeting. The record date for this sub-division is fixed as Friday, November 15, 2024.

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.

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. Net profit also grew by 21.0 per cent to Rs 30.70 crore.

The stock gave multibagger returns of 2,300 per cent in 5 years and a whopping 4,300 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.