JTL Industries - Fast Grower at an inflexion point

About the Company

JTL is engaged in the manufacturing and export of black and galvanised electric resistance welded (ERW) steel pipes and tubes through its four manufacturing units located at Derabassi (Punjab), Mangaon (Maharashtra), Mandi (Punjab), and Raipur (Chhattisgarh) with aggregate installed capacity of 600,000 MTPA as on March 31, 2023 (PY: 400,000 MTPA).

JTL has plants located at strategic locations that allow company to source raw materials at competitive prices and expand their sales and footprint in domestic and international markets.

  • Derabassi (Punjab) – 1L MTPA
  • Mangaon (Maharashtra) – 2L MTPA : Presence near port boosting ecports – will go up to 4L MTPA
  • Mandi (Punjab) – 2L MTPA (1.86L MTPA commercialised) – 14k MTPA to commence by end of FY24
  • Raipur (Chattisgarh) – 1L MTPA : 50% is dedicated to value added products – strategic location of the plant has offered an advantage of backward integration to ensure cost synergies and greater proximity to raw materials facilitating JTL to procure RM at competitive prices – will go up to 4L MTPA

Geographical Mix: 95% of the Sales is domestic; 5% is exports

Industries Catered: Agriculture, Water Distribution, Solar Projects, Energy & Engineering, Heavy Vehicles, Construction & Building Material, Core Infra


Industry is expected to grow at high single digits till CY30E

JTL is a fast-growing dynamic steel tube manufacturing company which specializes in producing ERW Black Pipes, PreGalvanized and Galvanized Steel Pipes, Large Diameter steel tubes & pipes, and hollow structure is planning to set up a mega project in Maharashtra

Growth Opportunities in various themes:

  • Warehousing
  • Infrastructure
  • Green Growth & Water Sanitisation
  • Affordable Housing
  • Oil Industry
  • Railways

Growth Triggers:

  • Significant capacity expansion plans with a total outlay of close to â‚ą500-550 crore increasing the capacity from 600,000 metric tonnes per annum (MTPA) as on March 31, 2023 to 1,000,000 MTPA over a period of next three years through FY26 and addition of value-added products
  • Raised Rs. 384 crores through the allotment of fully convertible warrants to fund the expansion
  • During FY23, the merger of Chetan Industries Limited into JTL was completed vide NCLT order dated March 30, 2023, and has been effective from April 01, 2021. JTL is amongst the fastest growing steel tube manufacturers.
  • Aims to double market share with the upcoming capacity expansion
  • Target of reaching a total manufacturing capacity of 2 million tonnes in the future
  • Aims to increase share of international sales to 15% from the current 9%
  • Anticipates a 30% increase in volume growth for the full year FY24 compared to the previous year
  • Expects third and fourth quarters to be better, with no demand slowdown foreseen
  • Expects EBITDA per tonne to increase with the introduction of DFT technology and an increase in the share of value-added products.
  • Within the next two years, JTL has set a goal to raise its proportion of value-added products to over 50%, as a part of its strategic plan to enhance the business and margins generated out of its product offerings
  • Mega Expansion Plan announced: JTL, through its wholly owned subsidiary JTL Tubes Limited, is embarking on a groundbreaking journey with the establishment of a mega capacity augmentation project in Maharashtra.

To finance this ambitious project, JTL is set to raise Rs. 13,100 Mn through various routes, including but not limited to Qualified Institutional Placement (QIP). This infusion of funds will be orchestrated from both promoter and non-promoter groups

Of the overall fundraising, the promoter and promoter group is committed to contributing Rs. 5,400 Mn, while the public, non-promoter group will play a pivotal role with the contribution of Rs. 2,700 Mn. The remaining Rs. 5,000 Mn will be garnered through the QIP route. This strategic initiative serves as a testament to the Company’s resolute dedication to expansion and diversification, reflecting its proactive approach in shaping the future of the Company marked by dynamic growth and success


  • Installed Capacity: 5,86,000 MTPA
  • 100+ Acres land bank area
  • 4 Manufacturing Facilities
  • Expanding current facility with DFT Tech, aiming for 10L MTPA
  • Pan-India presence + Global Presence (5 Continents, 20+ Countries)
  • 600+ employees
  • 800+ distributors and retailers
  • 1000+ SKUs
  • 5 Yr Revenue Growth: 56%
  • 5 Yr PAT Growth: 62%
  • H1FY24: Revenues up by 37% YoY, EBITDA up 53.5% YoY and PAT up 61.6% YoY
  • ROE: 30%+, ROCE: 35%
  • Stable operating margins at 7-8%
  • Institutions increasing stake
  • Debt going down: Negligible long term debt – D/E at 0.12
  • Improving WC Cycle from 71 days in FY23 to 57 days in H1FY24
  • PEG at 0.6

Quick Comparison with the giant APL Apollo

JTL Industries Ltd APL Apollo Tubes Ltd
Market Cap 4,234 44,403
Current Price 249 1,600
Stock P/E 38.3 57.9
ROCE 34.60% 26.90%
ROE 30.10% 23.50%
Price to book value 8.86 13.5
Debt to equity 0.12 0.36
Profit growth 5Years 62.50% 32.40%
Sales growth 5Years 55.60% 24.80%
PEG Ratio 0.61 1.79
Price to Sales 2.32 2.48
Return on invested capital 22.40% 20.20%
Interest Coverage Ratio 27.8 11.6
EVEBITDA 26.5 34.6
OPM 8% 6%

Disc: Invested and biased


@DeveshKedia thanks for the nice comparison with APL Apollo. It would be great if you could also share product overlap.

One reason why APL Apollo gets a better valuation is because even is such in the commodity market they try some innovation in products, Do you see the same with JTL?


APL Apollo-4817
JTL- 4580
APL uses DFT technology which is a value added product


Thanks for the great level of details! Something to keep an eye on - huge amounts stuck in investories and receivables. To some extent important for a fast growing company, yet, conversion needs to be tracked?


I think the company already had juice out . Last 5 yr profit grth and share price cagr huge difference between.

1 Like

Jtl Industries -237
Last 5 year profit growth is over 60%
Sector- Structural steel tubes
Trigger -Recent announcement of preferential issue in which promoters will be investing Rs 500 cr at Rs 270/, which itself is atleast 10% argitrage…
Company recently announced Rs 1300 cr of expansion in structural steel tubes in which apl Apollo is Market leader and now jtl is getting very aggressive and valuations wise is cheaper than apl Apollo. Promoters have huge skin in the game and with this mega expansion it opens new growth paths and recently in an interview Amit jeswani of stallion asset bought shares near 196 he’ s superb investor and promoter also bought from open market at 201…volumes are huge nowadays…compare to Apl Apollo they are so small and they are the best candidate who can give a great fight…so that’s a huge opportunity.
Investor and biased


Rough Financial Model

JTL Industries Ltd JTLIND
Current Market Cap 4,106.36
2023 2024 2025 2026
Capacity 586,000.00 600,000.00 800,000.00 1,000,000.00
Capacity Utilisation 60% 60% 65% 70%
Sales (tonnes) 351,600.00 360,000.00 520,000.00 700,000.00
EBITDA/tn 5100.00 5200.00 5300.00
EBITDA 129.00 183.60 270.40 371.00
Depreciation 4 7 10 16
EBIT 125.00 176.60 260.40 355.00
Interest 6 6.5 7 7.5
PBT 119.00 170.10 253.40 347.50
Tax Rate 26% 26% 26% 26%
TAX 30.94 44.23 65.88 90.35
PAT 88.06 125.87 187.52 257.15
P/E 46.63 32.62 21.90 15.97
PE on FY26 Exit Basis Market Cap Price 2.5yr CAGR Case
25 6,428.75 375.95 25% Bear
30 7,714.50 451.14 37% Base
35 9,000.25 526.33 48% Base
40 10,286.00 601.52 58% Bull
45 11,571.75 676.71 68% Bull

Key Risks:

  1. Delay in execution of expansion projects
  2. Volatility in steel raw marerial prices
  3. Government capex cycle has been a massive boost to the confidence of the sector in general and company in specific - any negative developments here will reduce the growth visibility - although the company says that the demand is much higher than thew supply across companies at the moment
  4. Starting valuations are not cheap but if the company delivers close to what it has guided, things could be interesting

Looking at the company for the first time, few questions:

  1. What happened to the company in 2018, that the gross margins suddenly expanded from 6% to 13%
  2. Anything change in the strategy of the company which led the AR days suddenly collapsing from 50-60 days to 30 days? and is it sustainable?

Promoter holding decreasing.
Public holding increasing.
Promoter holding is Main issue.

1 Like

Promoters are putting in Rs 500 cr through preferential that would increase their holding quite a lot and they recently bought 18cr shares even from open Market…promoters are super aggressive and have huge skin in the game.


Sir ye information kaise check kre pls guid.

My bonus shares (issued in Sept’23) are not reflecting in my portfolio. Anyone holding this company in ICICI securities facing the same issue?


Business Update - Dec 2023

  1. JTL has recorded its highest ever quarterly sales volume of 1,00,905 MT, exhibiting a rigorous
    and robust growth of 76.05% over Q3 FY23 driven by healthy demand for its structural steel
    tubes and pipes finding application in infrastructure and industrial sectors in both domestic and international markets.

  2. JTL recorded decent growth in volumes of value-added products which stood at 19,789 MT for
    Q3FY24. This underscores a remarkable YoY growth rate of 35.39%, surpassing the sales volume
    of 14,616 MT recorded during Q3 FY23. During the current quarter, the Galvanization facility was
    slightly impacted due to scheduled maintenance of Galvanization pot, a necessary measure taken
    periodically by The Company to uphold product quality and standards. This reduced overall
    operating capacity and in turn impacted the overall volumes for said segment. The Company,
    however, has swiftly addressed the maintenance requirements, and JTL aims to recover the lost
    volumes in upcoming quarters.

  3. In terms of 9MFY24 performance, The Company continues to scale significant milestone and has
    recorded highest ever 9M sales volume reaching an unprecedented 2,59,933 MT, surpassing FY23 sales volume of 2,40,316 MT and demonstrating a robust growth of 62.32% compared to 9M FY23. JTL witnessed a remarkable increase in sales of value-added products, with a substantial 46.79% growth, rising from 54,837 MT in 9M FY23 to 80,497 MT in 9M FY24

Source: Company Update

Disc: Invested


Source : A Safer Way to Make 12% Returns - Shankar Nath’s Substack


I had few questions regarding the JTL Industries if anyone can answer them.

Q1. Company currently has a capacity of 5.86L MTPA and is planning to increase it to 10L MTPA in next 2 years. But in FY23 their sales volume was 2.5L MT which is ~50% of the current capacity.
Why company is expanding its capacity rather than first trying to achieve 100% utilisation on the current capacity?

Q2. To whom will they cater this capacity?

Q3. Promoter (Madan Mohan) brother Vijay Singla got arrested by CBI in 2013 who held a 6.71% stake in the company in June and which has been reduced as of sept to 0%. Is he completely out of the business now?

In 2020-21, the company conducted a private placement. Who are these individuals (Kusum Bansal, Shilpa Bansal, Mukesh Kumar, Mohinder Pal, Laxmi Kant, Aakarshan Tracom) and are they related to the promoters?

Are the mentioned Kusum Bansal and Shilpa Bansal related to Vijay Singla?

Q5. What are company’s future plans and roadmap to increase their utilisation with the increase in capacity?


Hey can you please tell how have u prepared this financial model what are your assumptions