Analysis for the stock buying

176
PE 26, ROE 19

In previous chart price didn't close above the level.

✅ JTL Industries Limited, with over 30 years in steel tube manufacturing, produces ERW black steel tubes, galvanized pipes, large-diameter tubes, solar structures, and hollow sections across five facilities in India. The acquisition of Nabha Steel boosts its capabilities.

✅ Total income grew from ₹86 Cr in FY13 to ₹2,039 Cr in FY24, a CAGR of ~33%, with a notable spike from FY21 (₹435 Cr) to FY22 (₹1,355 Cr). TTM at ₹1,912 Cr suggests a slight dip from FY24.

✅ Secured a ₹265 crore order for the Jal Jeevan Mission, expanded Raipur Plant capacity to 200,000 MT/year (50% for value-added products), and is installing Direct Forming Technology (DFT) for enhanced product offerings.

✅ Operating Profit rose from ₹2 Cr (2% OPM) in FY13 to ₹152 Cr (7% OPM) in FY24. PAT increased from ₹1 Cr to ₹113 Cr over the same period, with EPS rising from ₹0.03 to ₹3.28. Margins: OPM stabilized at 7–8% since FY19, peaking at 9% in FY18. TTM OPM remains at 7%, aligning with Q3 FY25’s 7.78% from concall notes.

✅ Dividend payout began in FY21 (11%), dropped to 0% in FY22, and rose to 4% in FY24, indicating a cautious approach to shareholder returns.

Current PE is fair given JTL’s historical range (10–32), industry norms (15–35), and However, the "best" P/E to buy is 22–25.

Happy Investing.
Girish Anchan
W.M.A

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