The company recently announced plans to establish a mega capacity augmentation project in Maharashtra through its wholly-owned subsidiary JTL Tubes Limited.
Stock Market News: JTL Industries’ shares jumped over 2.3 per cent on Friday amid reports of capacity expansion plans and fundraising processes. The company recently announced plans to establish a mega capacity augmentation project in Maharashtra through its wholly-owned subsidiary JTL Tubes Limited.
“JTL Industries recently announced plans to raise INR 13.1 bn to fund a mega expansion project in Maharashtra (through JTL tubes Ltd., a subsidiary company), which would propel it to become one of the key steel pipe makers in India. This would enable it to be able to cater to the huge demand upsurge in the Indian structural tube market (expected to grow 70% from CY23 size of 13 MT to 22 MT by CY30),” Antique Stock Broking said.
The brokerage has maintained a buy rating and given a target price of Rs 286.
“Their current total installed capacity stands at 586 ktpa with a strong network of 800 distributors and retailers and 1,000+ SKUs. It had earlier raised Rs 340 crore through fully convertible warrants to fund its expansion to reach 750 ktpa by FY24 end and 1 mtpa by FY25. We like the company’s growth prospects and maintain ‘buy’ and arrive at a target price Rs 286,” it added.
The had earlier raised Rs 3.4 bn through fully convertible warrants to fund its expansion to reach 750 ktpa by FY24 end and 1 mtpa by FY25. Management is targeting 30 per cent YoY sales volume growth in FY24 and product mix improvement, to eventually reach 50% contribution from higher-margin Value Added Products (VAPs) by FY25.
Disclaimer: The article is for informational purposes only and not investment advice.