March 2024 results are about to be reported in full swing, and, before the same, various Brokerages are coming up with stock price targets discounting for their financial results and many other associated factors.
Listed below is a stock of a Steel company under the ‘small-cap’ category that one should consider adding to their portfolio after a well-known Domestic Brokerage provided a target price of the company’s stock with a potential upside of up to 35 percent.
JTL Industries Limited
With a market capitalization of Rs 3,511.25 crores, the stocks of JTL Industries Limited started their trading session on Friday at Rs 204 and currently trade at Rs 205.20, gaining around 0.40 percent compared to the previous close of Rs 204.45 apiece.
Axis Securities, one of the renowned Domestic Equity Brokerages, gave a ‘Buy’ recommendation on the stocks of JTL Industries Limited. It provided a target price of Rs 275 with a potential upside of approximately 34 percent.
The Brokerage gave such an aggressive recommendation on the company’s stock based on strong sales volumes during Q3FY24, ahead of the earlier growth guidance of 30 percent YoY.
In addition, the Brokerage, in Q4FY24, expects the share of value-added products to bounce back to 40 percent from 20 percent in Q3FY24, as the maintenance of the galvanizing pot is over.
Having a glance at the financial performance, the company’s prime indicators of business, viz, its operating revenues as well as after-tax profits, showed a stellar performance with the former increasing from Rs 502 crores during Q2FY24 to Rs 567 crores during Q3FY24, and the latter, during the same period, rose marginally from Rs 28 crores to Rs 30 crores.
Moreover, the company reported decent return ratios during FY23 with a return on equity (RoE) of 22.13 percent and a return on capital employed (RoCE) of 30.80 percent.
JTL Industries Limited is an India-based metal company engaged in the business of manufacturing galvanized ERW steel pipes and tubes, structural steel, and hollow sections extensively used in construction and engineering projects. The company has a pan-India presence across continents such as Africa, Asia, Australia, Europe, and North America.
Written by Amit Madnani
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