Nuvama initiates buy rating on this FII-backed stock - Check targets

Brokerage form Nuvama has initiated BUY rating on FII-backed JTL Industries. This comes after the steel pipes manufacturer shared a strong Q2 business update. 

The brokerage said that the steel pipes maker's volume growth in the September quarter was driven by strong demand for heavy structures.  

"The key is exports, which clocked > 200% growth on the back of the recent commissioning of the Maharashtra galvanised unit, which being closer to the port attracts higher exports. YoY growth of 15% in the domestic market was also strong despite falling HRC prices leading to destocking," the brokerage said.

The brokerage has set the target price of Rs 325. The counter had closed at Rs 239.45 in the last trading session. From here, the scrip can give a return of around 35 per cent in 12 months.

Incorporated in 1991, JTL Industries Limited is a small-cap company, having a market cap of Rs 4,456.59 crore. The company has expanded its offering by including value-added products such as hot-dipped galvanised steel tubes and pipes, solar module mounting structures and large-diameter steel tubes and pipes.