Stocks to Consider: JTL Industries has been gaining attention in the stock market, with experts projecting an impressive surge of over 35% in its share price over the long term. The small-cap company is poised for growth, particularly as the steel sector experiences a rally driven by China’s economic stimulus efforts. This article delves into why JTL Industries may be a strong candidate for long-term investment, backing up its potential with insights from market experts.
Market analysts are largely optimistic about the future of JTL Industries Ltd. The company is set to significantly expand its production capacity from 0.59 million metric tons per annum (MTPA) to 1.0 MTPA by FY25, with ambitious plans to triple this capacity to 2.0 MTPA by FY28. This growth will be fueled by favorable sector dynamics and a commitment to enhancing its product line with value-added offerings.
JTL Industries Share Price Target
Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, stated, “JTL Industries shares currently appear overbought. The stock has established a robust support base at ₹80. Given the uptrend in steel stocks attributed to China’s stimulus strategies, JTL Industries is on the cusp of a breakout from its consolidation phase.”
Brokerage firm SMIFS Limited has placed a target price of ₹294 per share on JTL Industries, accompanied by a ‘BUY’ recommendation. This price target suggests a potential return of 37.6% from the current trading price of ₹214. The valuation is anchored on a P/E ratio of 28x the estimated earnings per share (EPS) for September 2026. Presently, the stock trades at a P/E ratio of 33.3x for FY25 estimates, 25.2x for FY26 estimates, and 17.0x for FY27 estimates.
Ganesh Dongre of Anand Rathi further recommended that investors hold onto their shares of JTL Industries while setting short-to-medium-term targets of ₹240 and ₹260. He advised maintaining a strict stop loss at ₹180. For prospective investors, he suggested purchasing at the current market price (CMP), with the same target range of ₹240 to ₹260.
Historical Stock Performance of JTL Industries
JTL Industries has recently seen a decline, posting a negative return of 10%, with the stock dropping from a level of ₹237 to a closing price of ₹212.30 in early October.
On October 11, the board of directors of JTL Industries Ltd. approved a 1:1 stock split, a strategic move aimed at increasing liquidity. Each equity share with a face value of ₹2 will be split into two shares, each with a face value of ₹1. Additional information regarding the record date for the stock split will be issued to the stock exchanges in due course.
Overview of JTL Industries
Established in 1991 and headquartered in Chandigarh, JTL Industries is a key player in the steel tubes and pipes manufacturing sector. Initially focused on Electric Resistance Welded (ERW) Black Pipes, the company has diversified its product offerings to include galvanized steel pipes, solar module mounting structures, and large-diameter steel tubes and pipes, catering to a wide range of industrial applications.
According to a performance report, JTL Industries recorded an impressive compound annual growth rate (CAGR) of 58% in sales volume from FY21 to FY24, a trend expected to continue with a forecasted CAGR of 30.5% through FY27, bolstered by strong demand and enhanced distribution strategies. Moreover, the company boasts one of the highest EBITDA per ton metrics in the industry, with prospects for further improvement as it refines its product mix and expands its portfolio.
The report concluded that there is a strong belief in the long-term business potential of JTL Industries, underscored by robust industry demand, strategic capacity expansion, solid revenue visibility, enhanced EBITDA per ton, a streamlined balance sheet, and effective working capital management.
In summary, JTL Industries Ltd is well-equipped for long-term growth, with significant potential for share price appreciation driven by strategic capacity expansion and increased market demand. Investors looking for growth opportunities in the small-cap sector may find JTL Industries to be a compelling option.
Disclaimer: The insights and recommendations presented in this article represent the views of individual analysts or brokerage firms and are not reflective of the stance of our publication. It is strongly advised that investors seek counsel from certified financial experts before making any investment decisions, as market conditions can fluctuate rapidly and individual circumstances may vary.
