JTL Industries Limited

Basic Materials — Steel · NSE

₹87.15+₹3.96 (+4.76%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of JTL Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

JTL Industries Limited manufactures and sells iron and steel products in India and internationally.

IndustrySteel

SectorBasic Materials

Employees906

Annual revenue₹2,136 Cr

How does it make money?

Turns over ₹2,136 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 906 employees supports ₹2.36 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin7.8%

Net margin4.8%

Revenue / employee₹2.36 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

JINDAL STEEL LIMITEDP/E 39.1x · ROE 5.3%

STEEL AUTHORITY OF INDIAP/E 16.5x · ROE 7.1%

What is its competitive advantage?Little sign of one

Returns on capital of 9.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE9.1%

ROE6.9%

Peer median ROE10.8%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 31.3% and earnings to grow about 39.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+31.3%

Est. earnings growth+39.0%

Analysts3

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +38% while net margin moved -17% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+38%

Margin effect-17%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 9.1% is below 10% — capital is not working hard
✗ ROCE has fallen by 21.1 points — returns are eroding
✗ EBITDA margin of 7.8% is thin — little cushion if costs rise
✗ Net margin of 5.0% is slim
• Revenue has compounded at 11.3% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

44/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

41/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

28.2x

3Y Median

33.3x

40 monthly readings · mean 34.9x · range 17.7x–58.2x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 15% below its 3y median of 33.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 55% above the peer median of 18.2x.

vs. its own history

Fair

33.3x median over 40 months · -15%

vs. sector peers

Expensive

18.2x median of 4 peers · +55%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

28.2x

P/B

2.10x

EV/EBITDA

21.8x

PEG

6.17

Dividend Yield

0.15%

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.16x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Debt is rising
Total debt is up 129% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 22.1% to 6.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 30.2% to 9.1% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 193% against revenue growth of 38% — customers are taking longer to pay.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 129% over 3 years, from ₹107 Cr to ₹244 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 193% against revenue up 38% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 193% against revenue up 38%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 55% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 22.1% to 6.9%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 8% a year✓ 11.3% CAGR
Latest reported year was 32.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 7.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹213 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 9.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹3,426 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

28.2x

Fair

Fairly valued against the generic band

P/B Ratio

2.10x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹3.09

Profitable

Profitable on a per-share basis

ROE

6.9%

Weak

Weak capital efficiency

ROCE

9.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

32.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

143.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.15%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹213 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹87.15

P/E (Forward)

15.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

6.8%

Average

Average margins

Net Margin

5.0%

Average

Average bottom-line conversion

Current Ratio

3.22

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.98

Market-like

Moves roughly in line with the market

52W Range Position

87%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

86.9 / 84.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

42.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,550 Cr	₹2,041 Cr	₹1,916 Cr	₹2,136 Cr	+11.3%
EBITDA	₹133 Cr	₹158 Cr	₹143 Cr	₹167 Cr	+7.9%
EBITDA Margin	8.6%	7.7%	7.5%	7.8%	—
PAT (Net Profit)	₹90 Cr	₹113 Cr	₹99 Cr	₹103 Cr	+4.6%
EPS	₹2.32	₹3.26	₹2.3	₹2.62	+4.1%
ROE	22.1%	14.6%	8.1%	6.9%	—
ROCE	30.2%	19.8%	11.0%	9.1%	—
Total Debt	₹107 Cr	₹20 Cr	₹76 Cr	₹244 Cr	+31.7%
Free Cash Flow	-₹15 Cr	-₹125 Cr	-₹424 Cr	-₹213 Cr	—

🟢 Revenue has grown at 11.3% a year over 3 years.

🟢 EBITDA has grown at 7.9% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 7.8% over 3 years.

🟢 PAT (Net Profit) has grown at 4.6% a year over 3 years.

🟢 EPS has grown at 4.1% a year over 3 years.

🔴 ROE has fallen from 22.1% to 6.9% over 3 years (-15.2 pts).

🔴 ROCE has fallen from 30.2% to 9.1% over 3 years (-21.1 pts).

🔴 Total Debt has grown at 31.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,996 Cr

Total Liabilities

₹475 Cr

Total Debt

₹244 Cr

Cash & Equivalents

₹35 Cr

Operating Cash Flow

-₹67 Cr

Capex

-₹146 Cr

Shareholding (proxy)

Institutional Holding

0.3%

Insider Holding

56.2%

Corporate Actions

Dividend Rate

₹0.13

Ex-Dividend Date

11 Sept 2026

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹116.33

+33.5% vs CMP

Target Range

₹94 – ₹134

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

3 mixed3 general

Half Yearly Results, Half yearly Earnings for JTL Infra

The Economic Times, 16 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

JTL Industries (NSEI:JTLIND) Stock Forecast & Analyst Predictions

Simply Wall Street, 24 SeptAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Metal Stock Under Rs 100: JTL Industries To Invest Rs 15 Crore To Double HR Coil Capacity | Check Info

Goodreturns, 24 Aug

JTL INDUSTRIES Share Price Target 2026: Rs 97.5 Analyst Forecast

Univest, 23 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

JTL Industries hosts one-to-one investor meet in Mumbai next week

scanx.trade, 21 Aug

Goldman Sachs buys 0.5% stake in JTL Industries, sells 0.59% in AceVector

Moneycontrol.com, 07 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak5.9/20

🟢Financial HealthStrong13/20

🟡GrowthModest9.3/20

🔴ProfitabilityWeak4.6/15

🟡ValuationFair8.1/15

🟡RiskModerate4.8/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 8% a year11.3% CAGR
✓EBITDA margin holds above 6%7.8%
✗Free cash flow remains positive-₹213 Cr
✓Debt / EBITDA stays below 2x1.5x
✓ROCE stays above 8%9.1%