JTL Industries Shares Rally To Four-Month High As It Plans New Pipe Manufacturing Facility

JTL Industries Ltd.'s share price advanced for five days in a row and hit the highest level in over four months as the company informed the exchanges about setting up a new pipe manufacturing facility. JTL Industries intends to complete the setting up of pipe manufacturing facility in 12 months.

The new facility will be of Electric Resistance Welded pipe manufacturing line, which is specifically targeted to serve the ASTM/API-grad pipe market. It will add a capacity of 3 lakh million ton per annum.

ASTM stands for American Society for Testing and Materials, while API stands for American Petroleum Institute. Both these institutes set standards for pipes used in various industries.

The new facility will strengthen JTL Industries' position in the value-added and high-strength steel pipe segments, the company said in the exchange filing.

JTL Industries' share price jumped 6.26% to Rs 85.96 apiece, the highest level since March 6. The share price was trading 3.65% higher at Rs 83.74 apiece as of 2:07 p.m., as compared to a 0.21% decline in the NSE Nifty 50.

The stock declined 23.13% in 12 months, and 13.03% year-to-date. Total traded volume so far in the day stood at 6.3 times its 30-day average. The relative strength index was at 67.42.

Five analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 30%.