Stocks to Watch: JTL Industries has been in a steady phase for the past four months but is showing signs of breaking out of its sideways trend. The stock has moved from ₹197 to ₹215 per share in just a week. Global brokerage firm Nuvama has initiated coverage on JTL Industries, predicting that the stock could reach ₹303 per share within the next 12 months—a potential upside of around 40%.
Why Nuvama is Bullish on JTL Industries:
- Strong Growth: JTL Industries is one of the fastest-growing steel tube manufacturers in India. The company has been expanding its production capacity, which has led to significant growth in sales, profit margins, and overall profitability.
- Future Potential: Nuvama expects JTL’s profit to grow by 38% annually over the next few years (FY24–27). With India’s demand for structural tubes increasing, JTL is well-positioned to capture more market share.
- Strategic Investments: The company is focusing on value-added products (VAP), which not only boosts profitability but also helps attract a broader customer base globally. JTL is also investing in new technology to increase production efficiency and improve margins.
Investor Takeaway:
Nuvama believes that JTL Industries is on a strong growth path, with earnings expected to rise significantly due to capacity expansion and improved profit margins. They recommend buying the stock, setting a target price of ₹303 per share.
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