Nuvama initiates coverage on this steel tube manufacturer

Nuvama Institutional Equities has initiated its coverage of JTL Industries. The brokerage firm has given a 'Buy' call to the steel tube manufacturer.

"JTL Industries (JTL) is among the fastest-growing steel tube manufacturers in India. With capacity addition underway (mainly value-added), JTL has been consolidating its position via volume and margin expansion," it said 

The brokerage firm has set the target price of the company's stock at Rs 303. 

Meanwhile, JTL Industries has reported a 21 per cent rise in its net profit at Rs 30.70 crore for the quarter ended June 30.

The company had posted a profit of Rs 25.36 crore in the April-June period of the preceding 2023-24 fiscal.

Its revenue from operations rose to Rs 515.37 crore from Rs 504.80 crore in the year-ago quarter. 

Earlier, JTL Industries informed exchanges that its board of directors has approved the raising of funds by way of the issue of equity shares, through a QIP with a floor price of Rs 221.57 per equity share for the issue.