Steel stock under Rs 100 jumps as company unveils plans for 3 lakh MTPA ASTM/API-grade ERW line expansion to unlock Rs 7,000+ margins and 500+ SKUs

JTL Industries Limited, a leading steel tube manufacturer, has unveiled plans for a significant expansion with the commissioning of a new Electric Resistance Welded (ERW) pipe manufacturing line. This strategic move aims to cater to the growing demand in the ASTM/API-grade pipe market, enabling JTL to produce a wide range of pipes including round pipes from 6" to 20" OD, square sections from 130mm x 130mm to 400mm x 400mm, and rectangular sections from 100mm x 160mm to 300mm x 500mm, all with a thickness range of 4mm to 16mm. This new facility will add a substantial annual capacity of 300,000 MTPA, enhancing JTL's presence in value-added and high-strength steel pipe segments, with full installation and operation expected within the next 12 months.

Commenting on the development, the management of JTL Industries stated:

“This strategic investment reflects our commitment to diversifying our product portfolio and expanding our footprint in high-grade segments such as oil & gas, water transmission and city gas distribution (CGD)— markets that typically yield superior EBITDA margins of Rs 7,000 to Rs 8,000 per metric tonne, making this expansion significantly value-accretive. Our entry into higher-thickness, API-compliant products is a natural evolution as we scale both our technical depth and strategic reach. With this development, JTL will become one of the very few manufacturers in India with the capability to produce large-diameter, high-thickness API-grade ERW pipes, placing us in an exclusive league of technically advanced players. The new line will enable us to offer over 500 SKUs, vastly improving our ability to meet complex and customised infrastructure requirements across industries. Backed by a deeply entrenched distribution network and a proven execution track record, we are confident of scaling this segment efficiently upon commissioning. This move firmly positions JTL as a credible, future-ready force in the API-grade pipe market, both domestically and in select global geographies.”

About the Company

JTL Industries Limited is among the fastest-growing steel tube manufacturers, with its registered office situated in Chandigarh. The company operates manufacturing facilities in Punjab, Maharashtra and Chhattisgarh. Its cumulative capacity for pipe manufacturing is approximately 9,36,000 MTPA, with around 300,000 MTPA dedicated to backwards integration. The company is a recognised Star Export House and its product range includes GI Pipes, MS Black Pipes, Hollow Sections and Solar Structures, among others, catering to various industrial and infrastructural applications. All products are available in hot dip galvanised, pre-galvanised and uncoated (MS black) grades.

Talking about the financials, the company has a market cap of over Rs 3,300 crore. On Thursday, shares of JTL Industries Ltd jumped 6.36 per cent to Rs 86 per share from its previous closing of Rs 80.86 per share with a spurt in volume by more than 6 times on the BSE. The stock’s 52-week high is Rs 123.50 per share while its 52-week low is Rs 59.70 per share. The stock gave multibagger returns of 1,480 per cent in 5 years and a whopping 4,900 per cent in a decade.

Disclaimer: The article is for informational purposes only and not investment advice.