JTL Industries, a Chandigarh-based manufacturer of steel pipes and tubes, has fixed September 7, 2023, as the record date for its 1:1 bonus share issue. The company announced the bonus issue plan last month, which has enthused investors and sent the stock soaring over 100% from 52-week lows.
In a regulatory filing on Monday, JTL Industries announced that it has set September 7th as the record date for its 1:1 bonus issue. This means that shareholders owning JTL shares as of September 7th will be eligible to receive one bonus share for each share held.
The bonus issue is subject to shareholder approval at the company’s upcoming 32nd Annual General Meeting on August 30th.
The proposal to reward shareholders through a bonus issue in the 1:1 ratio was announced by JTL Industries last month. The generous bonus issue appears to have excited investors, evident in the stock’s stellar run since then.
JTL Stock Zooms Over 100% From 52-Week Lows
JTL Industries’ stock has delivered outstanding returns of over 100% from its 52-week lows, highlighting the positive market sentiment.
The small-cap stock hit a 52-week low of Rs 185.70 in September 2022 but has surged spectacularly since then. It went on to hit a 52-week high of Rs 412.60 in early August before moderating to current levels.
At Tuesday’s price of around Rs 388, JTL stock was still trading about 109% higher compared to its yearly low point. The impending bonus issue has acted as a key catalyst for the uptrend.
The stock got additional impetus from strong Q1 FY24 results announced earlier this month. JTL Industries reported a 38% revenue growth and a 110% jump in net profit for the June quarter.
About JTL Industries
Incorporated in 1991, JTL Industries is one of India’s leading manufacturers of steel tubes and pipes. Its products include ERW black pipes, galvanized pipes, solar module structures, and large-diameter tubes.
The company has a total manufacturing capacity of 5.86 Lakhs MTPA across four plants in Sikandrabad, Malanpur, Hindupur, and Hosur. JTL caters to both domestic and overseas markets across five continents.
It is the flagship company of the Jagan Group which is headed by managing director Rakesh Garg. JTL Industries competes against players like APL Apollo, Prakash Steelage, and Goodluck India in the pipes and tubes segment.
Strong Q1 Performance
JTL Industries reported robust Q1 FY24 results earlier in August, reflecting strong demand amid commodities upcycle.
The JTL industries net profit jumped 110% year-on-year to Rs 25.37 crore in the June quarter compared to Rs 12.07 crore profit last year.
Total revenue from operations witnessed a 38% growth to Rs 504.80 crore against Rs 368.04 crore in Q1 FY23.
The robust performance underscores JTL’s growing scale and profitability in recent quarters. The company’s expected capacity expansion and new product launches also make the future outlook promising.
Bonus Issue Highlights Growth Confidence
The bonus issue highlights JTL management’s confidence in continuing the company’s growth momentum and sharing prosperity with shareholders.
Bonus issues are one way for companies to reward shareholders without straining liquidity as dividends do. The 1:1 ratio makes the bonus issue even more attractive for JTL shareholders.
With strong tailwinds supporting both JTL’s operational performance and stock price, the company aims to enhance shareholder wealth via the liberal bonus issue.
As India’s infrastructure and construction activity expands, the demand outlook for steel pipes and tubes appears positive. JTL seems poised to capitalize on the favorable industry dynamics with its strong track record and production capacities.
