Stock to buy for long term: Experts see over 35% rally in JTL Industries share price. Buy or avoid?

Stocks to buy: Shares of JTL Industries are expected to surge by over 35 per cent, according to market experts, who see significant potential for the small-cap stock in the long term. With the steel sector rallying on the back of China’s stimulus efforts, JTL Industries is showing signs of a breakout. Investors are now weighing whether to buy into the stock or avoid it. Here’s what experts are saying about the stock’s prospects and why it may be a strong pick for long-term portfolios.

Experts are optimistic about JTL Industries Ltd., highlighting its potential for significant growth in the coming years. The company is on track to expand its production capacity from 0.59 million metric tons per annum (MTPA) to 1.0 MTPA by FY25, with plans to triple this capacity to 2.0 MTPA by FY28, driven by robust sectoral dynamics and a strategic focus on value-added products.

JTL Industries share price target

Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, noted, “JTL Industries shares are overbought. The small-cap stock has made a strong base at ₹80. As steel stocks are on an uptrend due to China’s stimulus buzz, the stock shows signs of a breakout from the consolidation phase.”

Brokerage firm SMIFS Limited has set a target price of ₹294 per share with a ‘BUY’ recommendation, indicating a potential 37.6% return from the current price of ₹214. The valuation is based on a P/E ratio of 28x the estimated earnings per share (EPS) for September 2026. Right now, the stock is trading at a P/E ratio of 33.3x for FY25 estimates, 25.2x for FY26 estimates, and 17.0x for FY27 estimates.

Ganesh Dongre of Anand Rathi advised investors to hold JTL Industries shares with short-to-medium-term targets of ₹240 and ₹260, maintaining a strict stop loss at ₹180. For new investors, he suggested buying at the current market price (CMP), with the same target of ₹40 to ₹260.

JTL Industries’ stock price history

JTL Industries share has given a negative return of 10 per cent reaching a level of ₹237 to closing at ₹212.30 on October.

On October 11, the board of directors of JTL Industries Ltd. approved a 1:1 stock split during their Thursday meeting while rejecting a proposal for a bonus share issue. The stock split will divide each equity share with a face value of ₹2 into two equity shares, each with a face value of ₹1. The company announced that the record date for the stock split will be shared with the stock exchanges at a later time, according to its filing.

JTL Industries overview

Founded in 1991 and based in Chandigarh, JTL Industries is a prominent manufacturer in the steel tubes and pipes sector. The company originally specialized in Electric Resistance Welded (ERW) Black Pipes, but has since broadened its product range to offer a diverse selection of high-quality, value-added products. These now include galvanized steel pipes, solar module mounting structures, and large-diameter steel tubes and pipes, catering to a wide variety of industrial applications.

The report indicated that JTL has recorded an impressive 58.0% compound annual growth rate (CAGR) in sales volume from FY21 to FY24, which is expected to continue at a 30.5% CAGR through FY27, supported by strong demand and improved distribution capabilities14. Furthermore, the company has achieved one of the highest EBITDA per ton metrics in the industry, with expectations for further improvement as it enhances its product mix and expands its offerings14.

The report further added, “We possess a strong belief in the long-term business potential, supported by strong industry demand, the expansion in capacity, healthy revenue visibility, enhancing EBITDA/ton, a streamlined balance sheet and efficient working capital days.”

According to a report by SMIFS Limited, “JTL Industries Ltd is well-positioned for long-term growth, with significant potential for share price appreciation driven by strategic capacity expansion and strong market demand.”

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.