Techno Funda analysis of JTL Industries Limited
Techno Funda analysis of JTL Industries Limited
According to the company website this organization is one the largest producer of Electric Resistance Welded (ERW) steel pipes including one of the largest section pipe & tube manufacturers in India, with a capacity to produce more than 6 Lakh Metric Tones per annum. It caters extensively to the region and exports to various countries globally. The company’s vast distribution network is spread across India, having branch offices in Delhi, Mumbai & Chandigarh, making it one of the leading GI pipe manufacturers in India.
Fundamental Analysis This stock is currently trading at 213, with all time high at 229. PE- 34.8, Book Value- 24.1, ROCE-34.6 and ROE 30.1. Providing a proper CAGR of nearly 62% over last 5 years, and medium sales growth of 19% in last 10 years.
Comparing to it’s peer’s PE is some extant in higher side, with lower dividend yield. Sectorial PE is 22.19 and PB 2.95, which is lower compare to this counter.
Net cash flow is incremental, and promoter holding is increasing in last three quarters, with 56.2 % promoter holding, .72 and .7 % with FII and DII, and rest with retailers.
So fundamentally this stock is okey to start investing, with lower quantities with a scope of accumulation later on after price correction.
Technical analysis- On monthly time frame- RSI is at 80, which is alarming, and a proper correction can be expected which reflects in lower time frame, where it started showing some corrective nature. And obviously stock is trading way above its standard medians.
Proper price for buying- For investing purpose- we can start adding this stock to our portfolio, with a very limited quantity, with no hope of profit in recent future, later on we may accumulate it further at 197, 180 and later at 153 if price touches these levels, after of course proper verification of the reason of fall.
*Personal opinion, not an advice*
According to the company website this organization is one the largest producer of Electric Resistance Welded (ERW) steel pipes including one of the largest section pipe & tube manufacturers in India, with a capacity to produce more than 6 Lakh Metric Tones per annum. It caters extensively to the region and exports to various countries globally. The company’s vast distribution network is spread across India, having branch offices in Delhi, Mumbai & Chandigarh, making it one of the leading GI pipe manufacturers in India.
Fundamental Analysis This stock is currently trading at 213, with all time high at 229. PE- 34.8, Book Value- 24.1, ROCE-34.6 and ROE 30.1. Providing a proper CAGR of nearly 62% over last 5 years, and medium sales growth of 19% in last 10 years.
Comparing to it’s peer’s PE is some extant in higher side, with lower dividend yield. Sectorial PE is 22.19 and PB 2.95, which is lower compare to this counter.
Net cash flow is incremental, and promoter holding is increasing in last three quarters, with 56.2 % promoter holding, .72 and .7 % with FII and DII, and rest with retailers.
So fundamentally this stock is okey to start investing, with lower quantities with a scope of accumulation later on after price correction.
Technical analysis- On monthly time frame- RSI is at 80, which is alarming, and a proper correction can be expected which reflects in lower time frame, where it started showing some corrective nature. And obviously stock is trading way above its standard medians.
Proper price for buying- For investing purpose- we can start adding this stock to our portfolio, with a very limited quantity, with no hope of profit in recent future, later on we may accumulate it further at 197, 180 and later at 153 if price touches these levels, after of course proper verification of the reason of fall.
*Personal opinion, not an advice*