Rs 24,00,00,000 Project: Steel Stock In Green After Securing 3,000 Metric Tonnes GI Pipe Order from PHE Department, Jammu under Jal Jeevan Mission

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 Ltd announced the receipt of a significant order to supply 3,000 metric tonnes of Galvanized Iron (GI) pipes of assorted sizes. The order, valued at Rs 24 crore, has been placed by the Public Health Engineering (PHE) Department, Jammu, as part of the Jal Jeevan Mission (JJM). The delivery is scheduled to be completed within the next 30 days.

Launched by Prime Minister Narendra Modi on August 15, 2019, JJM has transformed rural water access, increasing tap water coverage from 3.23 crore (17 per cent) households at launch to 15.44 crore (79.74 per cent) as of February 1, 2025. The government has now extended JJM until 2028 with an enhanced outlay, as the final 20 per cent coverage requires significant infrastructure investments, advanced execution strategies, and greater last-mile connectivity efforts. The Jal Shakti Ministry estimates an additional Rs 4 lakh crore will be required to complete the mission, with Rs 67,000 crore allocated for FY 2025-26 alone.

Given these developments, JTL Industries, as a key supplier in JJM, stands to benefit significantly. The company has a strong track record in delivering high-quality GI pipes for water infrastructure projects and is well-positioned to capture additional opportunities arising from the government’s renewed focus on quality, sustainability, and long-term water security.

Earlier, the company entered 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.

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 Wednesday, shares of JTL Industries Ltd surged 4.71 per cent to Rs 102.65 per share from its previous closing of Rs 98.03 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.