This small-cap stock engaged in the manufacture and supplier of steel tubes, pipes, and allied products, jumped 2 percent after receiving approval to operate RCI Industries & Technologies Limited’s plant in Baddi for copper and brass alloy production.
Stock Price Movement:
With a market capitalization of Rs. 3,525.86 crores, the share of JTL Industries Limited has reached an intraday high of Rs. 92.59 per equity share, rising nearly around 2.10 percent from its previous day’s close price of Rs. 90.69. Since then, the stock has retreated and is currently trading at Rs. 92.29 per equity share.
What Happened:
JTL Industries has received approval from the NCLT to commence operations at RCI Industries & Technologies Limited’s plant in Baddi, Himachal Pradesh. Under an MoU, JTL will produce up to 200 MT per month of copper and brass alloys.
This strategic move aligns with JTL’s expansion into defence supplies, supporting India’s “Make in India” initiative. Upon final NCLT approval, JTL will fully own the plant, enhancing its topline growth by FY27.
Management Guidance:
JTL has raised Rs. 675 crore through a preferential allotment by promoters, strengthening its capacity expansion plans. The company is on track to increase its manufacturing capacity to 1 million MTPA by the end of FY25.
Additionally, the company anticipates a 20–25 percent rise in sales volume from FY24 to FY25, driven by a higher contribution of value-added products, further strengthening its market position.
Products Offering:
JTL Industries manufactures a wide range of steel products, including ERW pipes, structural steel, and specialized solutions like solar module mounting structures. Their offerings serve multiple industries, including agriculture, water, energy, construction, and infrastructure.
Clientele:
The company has a vast client base and an extensive distribution network. It directly serves major companies like Tata Power, Avaada, Sterling & Wilson, Susten, and ThyssenKrupp. Additionally, its distribution partners include top industry leaders such as TRF, ABB, Suzlon, PowerGrid, HP, L&T, TRF, and Siemens.
Manufacturing Capacity:
JTL Industries operates manufacturing units across key locations in India. The company’s Unit I in Derabassi, Punjab, has a capacity of 1,00,000 MTPA, while Unit II in Mangaon, Maharashtra, can produce 2,00,000 MTPA. Unit III in Mandi, Punjab, has a 2,00,000 MTPA capacity, with 1,86,000 MTPA already operational and the remaining 14,000 MTPA set to commence soon.
Additionally, the company’s Unit IV in Raipur, Chhattisgarh, also holds 2,00,000 MTPA capacity, with half dedicated to value-added products. These strategically located plants enhance JTL’s backward integration, cost efficiency, and proximity to raw materials, ensuring competitive procurement.
Recent quarter results:
JTL Industries Limited’s revenue has decreased from Rs. 567 crore in Q3 FY24 to Rs. 451 crore in Q3 FY25, which is down by 25.72 percent. The net profit has also dropped by 16.67 percent from Rs. 30 crore in Q3 FY24 to Rs. 25 crore in Q3 FY25.
Written By – Nikhil Naik
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