JTL Industries share price: Axis Securities sees 10% upside in this LIC-owned stock

JTL Industries, a company specialising in the production of ERW pipes, GI pipes, MS black pipes, hollow sections, and solar structures, has received a ‘buy’ rating from Axis Securities.

Axis Securities has set a target price of ₹111 per share, suggesting a 10 per cent upside from its current market price of ₹101. The brokerage firm anticipates this growth over a 6–9 month tenure, citing the company’s strategic expansion plans and resilient performance in a challenging market.

Notably, LIC Mutual Fund Large Cap Fund has a significant holding in JTL Industries, with 30.21 lakh shares, accounting for a 1.54% stake, as per the September quarter shareholding pattern.

Based in Chandigarh, JTL Industries is recognised as one of India’s fastest-growing steel tube manufacturers, with a current manufacturing capacity of 686 KTPA (thousand tonnes per annum) spread across facilities in Punjab, Maharashtra, and Chhattisgarh. 

Axis Securities’ report, released on December 11, 2024, cited JTL's ambitious plans to significantly boost production in the coming years. By the end of 2025, the company aims to increase its capacity to one million tonnes per year, and by 2027, it plans to double that figure to two million tonnes.

Rating Rationale

Much of this growth will come from high-value products like pre-galvanised and colour-coated pipes, which are expected to make up nearly half of its offerings by 2026, said the brokerage. These premium products not only meet growing demand but also bring higher profit margins, signalling a bright financial future for the company, as per Axis Securities report.

Despite challenges like declining steel prices, JTL has managed to hold its ground. In the second quarter of FY25, the company reported a solid operating profit of ₹3,300 per tonne. This resilience is partly due to its smart sourcing strategy, which includes using both primary and secondary HR coils, making it less vulnerable to market fluctuations. Additionally, exports have become a growing part of JTL's business, jumping to 14% of total sales in the latest quarter, compared to just 5% a year ago, the report added.

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