Shares of JTL Industries, which have delivered multibagger returns to investors in the longer run, extended its gains on Friday (June 30) as the small-cap company will consider issuance of bonus shares and results in the upcoming board meeting scheduled for July 29, 2023. At 2:40 pm, the scrip was trading 0.63 percent higher at Rs 360.90 apiece on the BSE.

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The stock rose 5 percent to Rs 365 apiece in Friday's trading session as against its last closing price of Rs 347.9. JTL Industries' shares have surged almost 2200 percent in the last three years from its Covid-19 lows of around Rs 16, while the stock has gained 73 percent in the last one year.

On a year-to-date basis, the multibagger stock has rallied 15 percent while the company's shares have gained about 97 percent from its 52-week low around Rs 185.7. The company was commanding a total market capitalisation close to Rs 3,056 crore.

"A meeting of the board of directors of the company will be held on Saturday, the 29th day of July, 2023, inter-alia to consider to approve issuance of fully paid bonus equity shares to the members of the company subject to such regulatory/ statutory approvals as may be required, including the approval of the shareholders of the company and other allied activities," the company had said in a BSE filing.

Analysts see more upside in this multibagger stock

Initiating a coverage on JTL Industries with a 'buy' tag and target price of Rs 470, analysts at domestic brokerage house Axis Securities have suggested a further upside of 30 percent in the counter from the current market levels.

The brokerage cited its wide distribution reach through strategically located plants, aggressive capacity expansion and value growth plans and stable operating profits and returns during the expansion phase.

With the volume expansion Capex going on, the company's Return on Equity (ROE) and Return on Capital Employed (ROCE) are expected to moderate but would remain decent near 20 percent, the brokerage said.

Given the company's healthy return ratios despite being in an aggressive growth Capex stage, Axis Securities see 22 times as a reasonable valuation for JTL. "We value the company at 22 times its FY25 EPS (earnings per share) to arrive at its one-year forward target price of Rs 470 per share," the note stated.