JTL Industries, a smallcap iron and steel products maker, is recommended to BUY after its Q3 results for FY25. JTL has a strong record of dividends, stock splits and bonus issues in the past two years. Currently, the stock price is below Rs 100 apiece level on BSE, while it has surged by more than 2.5% year-to-date. The all-time gains of JTL Industries are about 1,503% as of now.
JTL Industries Share Price:
Last week, on February 1, JTL stock price stood at Rs 96.52 apiece, with a market cap of Rs 3,687.47 crore on BSE. The stock's 52-week high and low are at Rs 138.30 apiece and Rs 83.55 apiece respectively.
Since 2021, JTL has delivered two dividends, two stock splits and one bonus issue.
Stock Split: At the latest is the stock split of 1:2 ratio which took place on November 14, 2024, where face value of Rs 2 was trimmed to Re 1 each. The first stock split by JTL was of a 1:5 ratio in October 2021, where the face value of Rs 10 was cut to Rs 2.
Dividends: The company paid a final dividend of Rs 0.25 per share for FY24 in August 2024, which was higher than final dividend of Rs 0.20 per share for FY23 that took place in August 2023.
Bonus Issue: The company has rewarded investors with a 1:1 bonus ratio and the record date was in September 2023.
Should You BUY JTL Industries Stock Price?
As per Antique Stock Broking, JTL Industries' 3QFY25 consolidated revenue at ~INR 4.5 bn declined by 20.4% YoY and 5.9% QoQ, impacted by lower volume and realization. The company reported a quarterly sales volume of 87.7 KT (excluding Nabha volumes of 9.8 KT) which declined by 13.1% YoY and 3.0% QoQ. EBITDA at INR 351 mn was 14% below our estimate, it shrunk by 17.4% YoY and improved 17.7% sequentially with a decline in blended realization. Blended realization at INR 51,467 per ton declined by 8.5% YoY and 3.0% QoQ due to lower steel prices. EBITDA per ton came in at INR 4,005, lower by 4.9% YoY and 21.4% higher QoQ; 2QFY25 was impacted by inventory loss to the tune of INR 900-930 per ton.
On the valuation, Antique's note said, "Capacity expansion to 1 mtpa by FY25 and 2 mtpa by FY27 would drive volume growth and product portfolio improvement with higher value-added products would lead to margin expansion with comfortable leverage levels. We factor in lower volume and softer realization leading to 16%/ 12%/ 8% reduction in FY25/ 26/ 27 EPS. We maintain BUY rating with a TP of INR 121 (earlier INR 131) at a target P/E multiple of 20x FY27 earnings."
About JTL Industries:
JTL Industries Limited (formerly known as JTL Infra Limited) is the flagship company of the Jagan Group of Companies, with its corporate office located in Chandigarh and four plants located pan - India.
Since its inception in 1991, JTL Industries Limited has grown from a manufacturer of ERW Black Pipes to a producer of value-added products such as galvanized steel pipes, solar module mounting structures, and large diameter steel tubes & pipes.
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