Nuvama has upgraded its target price for JTL Industries, highlighting the company’s capacity growth, strategic move into higher-margin products, and improving financial metrics, sparking investor optimism.
JTL Industries has drawn fresh market attention after Nuvama reiterated a bullish view on the steel pipe maker, with the brokerage pointing to capacity expansion, a richer mix of value-added products and tighter control over working capital. Trade Brains reported that the stock rose as much as 1% in early trade, with investors digesting the latest target revision and the company’s improving operating profile.
According to the Trade Brains summary, Nuvama lifted its target price to ₹121 from ₹109, implying roughly 57% upside from the previous close of ₹76.91. The report said the broker believes JTL is better placed to serve demand from infrastructure, construction and industrial customers as its manufacturing base grows, while a greater share of higher-margin products should support earnings quality and reduce reliance on commodity-linked pricing.
The company’s recent numbers have also helped underpin the case. Trade Brains said revenue in the quarter rose 32.7% year-on-year to ₹722 crore, while net profit more than doubled to ₹35 crore. Return on capital employed stood at 9.57% and return on equity at 7.28%, with debt-to-equity at 0.16, suggesting a relatively conservative balance sheet. Nuvama’s longer-term case, as summarised in the report, centres on a working-capital cycle that has already improved from 90 days to 75 days and is targeted to fall to 35-40 days, alongside management’s FY27 goal of about 30% volume growth and EBITDA of ₹4,500 per tonne.
The broker’s optimism comes as JTL continues to expand across pipes, tubes, hollow sections and solar structures from six plants in Punjab, Maharashtra, Chhattisgarh and Himachal Pradesh. The company says it has a structural steel tube capacity of 1.0 million tonnes a year and exports to more than 20 countries. A separate Business Standard report said Nuvama had initiated coverage with a much higher target of ₹303 and expected a 38% compound annual growth rate in profit after tax through FY27, while Axis Securities has also assigned a Buy rating with a ₹115 target. That range of views suggests strong analyst interest, even if price targets vary widely.
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