JTL Industries - Fast Grower at an inflexion point

Where is the source for this purchase,

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3lakh shares bought by JTL

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I was just randomly trying to find some high growth stocks at reasonable valuations using :-
YOY Quarterly sales growth > 20 AND
YOY Quarterly profit growth > 20 AND
Profit growth 3Years > 20% AND
Market Cap to Sales < 2 AND
Market Capitalization < 5000 AND
Change in promoter holding > Change in promoter holding 3Years AND
Change in FII holding > 0 AND
Price to Earning < 35 AND
Average return on capital employed 3Years >30

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The stock is exhibiting weakness again, vulnerable to 170 levels, in a strong rising market.

I’ve taken a closer look at the numbers on screener. Given that since 2012 the company has grown it’s buziness, profitability and balance sheet without diluting key metrics like NPM, ROCE, ROE, revenue run rate etc., the company has demonstrated a “sustainable” track record.

Apart from that one event, is there any other overhang on the stock? The company’s clarification or insider share purchase don’t seem to help.

Plz comment.

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I can not understand either. Everything except for that event seem to be favorable. I can not get more info about promoters, like thier background in other businesses, any integrity issues, etc… in other words, can no understand why price is still trading at lower band.

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cash flows are poor and the event which happened has caused a huge overhang which may last for months, its nearly impossible that someone buys such a huge quantity of shares and company isnt aware of the buyer

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What is this event you are referring to?

Promoter bought 0.17% on 3/18/2024

Isn’t that a big positive? Why will there be an overhang in price?

I think @Akash_Lalwani is referring to Zenith company being allocated a large number of shares during the preferential issue. Thats definitely a concern.

My only counter argument is that (1) Preferential shares are allocated at 300rs per share so minority shareholders were not short changed. (2) Management gave a clarification that they do not know Zenith (3) To re iterate their commitment, Promoter bought shares during the downfall although thats considerably a low number of shares.

At this stage, there do not seem to be any more clarification other than share price continue to be down. Market may know something that not all shareholders are privy to. I sincerely hope that there is no issue. I am invested and holding it.

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I feel low cash flow issues could be partially explained by high growth. Their inventory and receivables are eating into the net profits… not great but i did not think it caused a major concern given the growth.

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CFO upto FY 21 was in the negative due to high debtors ageing. Starting FY22 and including H1 of FY24, CFOs have turned positive and showing improving trend along with drastically reduced debtors ageing.

Now that the financial year is effectively over, the Q4 financials will be a deciding factor.

Zenith was allocated warrants in 2022 and shares allocation prior to ED action was the legal norm. The timing of the events seems unfortunate.

Weakness in a rising market only raises questions of any possible surprises to retail investors.

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In the annual report it’s shown that they have given out loans worth approx 52 crores without any interest income but they took loans worth 52 crores from the promoters.
Is there any possibility of directors taking money from the company and giving it back as loans to earn interest


P.S. I am new to investing, not an expert in reading balance sheet

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JTL has just reported annual volume performance. 9M volume growth was excellent but the Q4 growth was merely 2% YOY. APL Apollo reported 4% q4 growth YOY and ~15% YOY growth for the whole year.

Wonder what the Q4 financials would look like and whether that’s the reason for the stock price fall apart from other factors

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JTL Achieves Highest Ever Annual Sales Volume

FY 24 Volume - 341,846 MT (43% Growth YoY)

Q4FY 24 Volume Growth - 20% YoY; Flat QoQ15605:49 PM

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How did you arrive at 20% YOY growth for Q4? I’ve taken the 12 month figs and reduced the 9 month figs to arrive at Q4.

Looks like market likes their recent Annual performance report.

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From April 24 JTL will also implement same tech.

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Recently I got a call from there IR stating that there is being investor survey going on as they have on boarded gensol as there new client but idk why they are trying to sell the story so much I believe that the company is fundamentally strong the. Why they are selling this all?

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