Steel Stock Under Rs 100 Turns Green After Company Incorporates a New Subsidiary as a Part of Business Expansion

The stock gave multibagger returns of 1,260 per cent in 5 years and a whopping 2,600 per cent in a decade.

JTL Industries Limited has successfully incorporated JTL Engineering Limited as a subsidiary, formerly known as Nabha Steels & Metals. This strategic move aims to improve operational efficiency and scalability by integrating the partnership firm into the company's structure. The transition will streamline financial reporting, as all sales and revenues from JTL Engineering Limited will now be included in JTL's consolidated financials, enhancing transparency. The first phase of JTL Engineering's expansion has already shown positive results, achieving a production rate of 5,000 metric tons of HR coils per month, with further expansion planned. The subsidiary's performance is evident in its 9M FY25 sales volume of 33,277 metric tons, which demonstrates consistent performance and aligns with the company's expectations.

Commenting on the successful incorporation, the management of the Company said:

“The incorporation of JTL Engineering Limited (formerly Nabha Steels & Metals) as a subsidiary represents a crucial step in our long- term strategy to strengthen our core operations and maximize synergies. This transition enhances our corporate structure, improves financial transparency, and positions us for sustainable growth. JTL Engineering Limited (formerly Nabha Steels & Metals) will continue to focus on its core business, ensuring a seamless transition for existing clients, partners, and stakeholders. This move aligns with JTL Industries Limited’s long- term vision to strengthen its market position and drive future growth. This transition solidifies JTL Industries’ position as a leading player in the steel industry, enhancing its backward integration capabilities and expanding its market reach. The company remains committed to delivering high-quality steel solutions and exploring new growth opportunities to reinforce its leadership in the sector.”

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.

Talking about the financials, the company has a market cap of Rs 2,900 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 jumped 5.44 per cent to Rs 79 per share from its previous closing of Rs 74.92 per share. The stock’s 52-week high is Rs 123.50 per share while its 52-week low is Rs 74 per share. The stock gave multibagger returns of 1,260 per cent in 5 years and a whopping 2,600 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.