4,000 per cent returns & FIIs increase stake: Multibagger stock in green after announcing Rs 1,300 crore business expansion and allocating 2,40,300 warrants!

The stock gave multibagger returns of 1,380 per cent in 3 years and a whopping 4,000 per cent in a decade.

Today, shares of JTL Industries Limited surged 4.32 per cent to Rs 238.85 per share from its previous closing of Rs 228.95. The stock’s 52-week high is Rs 252.75 and its 52-week low is Rs 141.28.  

The Securities Issue and Allotment Committee of the company allotted 2,40,300 equity shares to a non-promoter/public category allottee upon receiving the remaining 75 per cent of the issue price. This conversion of warrants also entitled the allottee to 2,40,300 bonus shares, bringing the total number of allotted shares to 4,80,600. Consequently, the company's issued, subscribed, and paid-up equity share capital increased to Rs. 34,22,27,440. These new shares rank equally with the existing equity shares.

This allotment is part of a larger process that began on March 3, 2023, when warrants were issued to warrant holders at Rs. 300 per warrant. The recent conversion and bonus share allotment signify the completion of this process and the increase in the company's share capital.

Earlier, JTL Industries was poised for a transformative leap, securing a robust Rs 1,310 crore for its mega Maharashtra expansion via a multi-pronged strategy. This includes hefty contributions from promoters and the public alike, totalling Rs 810 crore, alongside a strategic Rs 500 crore Qualified Institutional Placement, showcasing JTL's unwavering commitment to explosive growth and market diversification.

The company offers electric resistance welded steel pipes, tubes, hollow sections, and structural steel products. JTL Industries serves customers worldwide. The company's product offerings include Electric Resistance Welding (ERW) pipes, galvanized pipes, solar structures, etc. The company has a market cap of over Rs 3,600 crore. The stock has an ROE of 30.1 per cent and a ROCE of 34.6 per cent.

The company achieved significant growth in both its quarterly and half-yearly results for FY24. Net sales and net profit rose substantially, driven by record-breaking sales volume of structural steel tubes and pipes. Notably, the half-yearly net profit more than doubled compared to the previous year, highlighting the company's strong performance. Overall, FY24 has been a year of robust growth and record-breaking sales for the company.

Foreign investors (FIIs) significantly boosted their ownership in the company during Q2FY24, nearly quadrupling their stake from 0.72 per cent to 2.67 per cent. Notably, BNP Paribas Arbitrage-ODI holds a significant 1.40 per cent stake. The company also rewarded shareholders with a 1:1 bonus share issue and a final dividend of Rs 0.2 per share, distributed on September 7, 2023 and August 4, 2023, respectively.

The stock gave multibagger returns of 1,380 per cent in 3 years and a whopping 4,000 per cent in a decade. Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.