Buy or sell stock: JTL Industries share price jumps 19% in two days after FY24 business update

Buy or sell stock: JTL Industries share price has been in an uptrend for the last two days in a row. JTL Industries shares attracted strong buying interest in the first trade session of the new financial year 2024-24 and hit the upper circuit. The scrip opened upside on Tuesday and went on to touch an intraday high of ₹218 apiece on NSE, logging around 19 percent rise against its weekend close of ₹183.25 per share. JTL Industries share price witnessed strong buying interest on Monday after the company declared strong business updates for the financial year 2023-24. In an exchange filing on Monday, JTL Industries Ltd informed that the company has registered the highest-ever sales volume in the recently ended fiscal by logging over 42 percent annual growth. The company registered around 34.45 percent rise in sales volume of value-added products as well.

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JTL Industries FY24 business update

Sharing FY24 business performance with the Indian stock market exchanges, JTL Industries Ltd said, "JTL has achieved a remarkable milestone by attaining its highest-ever sales volume, reaching an unprecedented 341,846 MT. This surpasses the sales volume of the previous fiscal year, FY23, which stood at 240,316 MT, showcasing a robust growth rate of 42.25%. Additionally, JTL experienced a significant rise in sales of value-added products, with a notable increase of 34.45%, climbing from 74,243 MT in FY23 to 99,818 MT in FY24."

On Capex and EBITDA, JTL Industries said, "The company is on track with its announced capex plan with the initiation of the dispatch and timely delivery of DFT machines and commissioning of the same by Q1FY25. Through this commissioning of the DFT plant, we would be able to elevate plant capacity utilization, a testament to our commitment to operational efficiency. JTL will be able to manufacture higher diameter pipes which would increase our kitty by 300+ SKUs of Value Added products. This strategic move is anticipated to significantly boost our EBITDA margins, reflecting our commitment to innovation and profitability."

Commenting upon the FY24 business performance, JTL Industries management said, "Our strategic focus remains on enhancing operational efficiency, expanding our product portfolio, and capturing market opportunities. Our DFT plant will mark a pivotal advancement in our manufacturing capabilities and with its introduction, we anticipate a marked increase in plant capacity utilization and increase efficiency in production reflecting our commitment to operational excellence and meeting the escalating demands of our valued customers with the addition of 300+ Value Added SKUs."

JTL Industries share price target

Expecting more upside in JTL Industries share price, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi said, "JTL Industries shares are looking positive on chart pattern and it may go up to ₹248 apiece level in next one to two weeks. Those who have this scrip in their portfolio can further hold this stock for the above-mentioned short-term target. However, they are advised to upgrade their trailing stop loss to ₹190 after the strong rally in the last two successive sessions."

On the suggestion to the fresh investors, Ganesh Dongre of Anand Rathi said, "Fresh investors can buy JTL Industries shares at around ₹210 to ₹205 apiece level and keep on accumulating on every big dip. However, fresh investors are advised to hold the scrip maintaining stop loss at ₹180 per share level for the short-term target of ₹248 apiece."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.