One of the small-cap stocks engaged in the manufacture and supplier of steel tubes, pipes, and allied products. The stock is in focus after announcing a joint venture agreement with M/s Singla Constructions Limited for a railway tender jointly.
Stock Movement:
In Thursday’s trading session, JTL Industries Limited‘s share has jumped by 0.80% from the previous close of Rs. 94.20. The stock opened and is currently trading at Rs. 94.95 with a high of Rs. 95 and a low of Rs. 91.55. The market capitalization now stands at approximately Rs. 3,532.51 crore.
What Happened:
JTL Industries Limited has partnered with M/s Singla Constructions Limited through a special purpose joint venture agreement to bid for a railway tender jointly. This collaboration leverages the strengths of both companies to execute the contract effectively, should the tender be awarded to the joint venture.
Products Offering:
JTL Industries produces a diverse range of steel products, including ERW pipes, structural steel, and value-added offerings like solar module mounting structures. Their products cater to various sectors, such as agriculture, water, energy, construction, and infrastructure, demonstrating their ability to meet diverse market demands.
Manufacturing Capacity:
JTL Industries Limited has a manufacturing capacity across its strategic locations in India. The company’s Unit I in Derabassi, Punjab has a capacity of 1,00,000 MTPA, while its Unit II in Mangaon, Maharashtra, has a capacity of 2,00,000 MTPA.
Additionally, the company’s Unit III in Mandi, Punjab has a capacity of around 2,00,000 MTPA, of which 1,86,000 MTPA is commercialized, and the remaining 14,000 MTPA is expected to be commenced in the upcoming quarters.
The company’s Unit IV in Raipur, Chhattisgarh, also has a capacity of 2,00,000 MTPA, with 50% dedicated towards producing value-added products. The strategic locations of these plants offer JTL Industries an advantage in terms of backward integration, cost synergies, and greater proximity to raw materials, enabling the company to procure raw materials at competitive prices.
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Clientele:
The company’s extensive client base and distribution network. On the direct clientele side, it works with prominent names like Tata Power, Avaada, and ThyssenKrupp. Its distribution
channel includes leading industry players such as TRF, ABB, and Siemens, reflecting the company’s wide market reach and strong industry partnerships.
Recent quarter results and ratios:
JTL Industries Limited’s revenue has decreased from Rs. 502 crore in Q2 FY24 to Rs. 480 crore in Q2 FY25, which has down by 4.38 percent YOY. The net profit of JTL Industries Limited has also been down by 7.14 percent, from Rs. 28 crore in Q2 FY24 to Rs. 26 crore in Q2 FY25.
JTL Industries Limited’s revenue and net profit have grown at a CAGR of 44.65 percent and 51.84 percent, respectively, over the last four years.
In terms of return ratios, the company’s ROCE and ROE should be 23.4 percent and 18.8 percent, respectively. The debt-to-equity ratio of the company is to be 0.04x. JTL Industries Limited’s EPS is to be Rs. 3.31.
Company Overview:
JTL Industries Limited specializes in manufacturing electric resistance welded (ERW) steel pipes and tubes across diverse industrial segments. The company operates four manufacturing facilities in Punjab, Chhattisgarh, and Maharashtra, producing versatile steel products. The company exports to multiple international markets, serving agriculture, infrastructure, and engineering sectors with innovative steel solutions.
Written By – Nikhil Naik
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