FIIs bought 99,77,902 shares & DIIs bought 1,72,71,679 shares: Multibagger Steel Pipe Stock Jumps Over 50 Per Cent In Just 1 Year; Do You Have It?

The stock is up by 57.85 per cent from its 52-week low of Rs 97.60 per share and gave multibagger returns of over 1,000 per cent in 5 years.

On Tuesday, shares of Hi-Tech Pipes Ltd gained 4.13 per cent to Rs 158.80 per share from its previous closing of Rs 152.55 per share. The stock’s 52-week high is Rs 210.75 per share and its 52-week low is Rs 100.60 per share. 

One of India’s leading steel processing companies, providing world-class innovative products for nearly four decades with a strong presence in steel pipes, hollow sections, tubes, Solar Torque Tubes, cold rolled coils & strips, road crash barriers, solar mounting structures, GP/GC Sheets, Colour Coated Coils and a variety of other galvanised products. The Company operates Six (6) state-of-the-art integrated manufacturing facilities located at Sikandrabad (UP), Sanand (Gujarat), Hindupur (AP) - near Bangalore, and Khopoli (Maharashtra), with an installed capacity of 7,50,000 MTPA, on a consolidated basis and is on its way to reaching 1 million Tones Capacity in FY25. The company has a direct marketing presence in over 20 states with more than 450+ Dealers & distributors across India.

FIIs & DIIs Purchase Stake: In October 2024, FIIs bought 99,77,902 shares and increased their stake to 12.98 per cent and DIIs bought 1,72,71,679 shares and increased their stake to 17.22 per cent compared to September 2024. In December 2024, Manoj Kumar Gupta Trustee Hi-Tech Pipes Employees Welfare Trust bought 65,000 at Rs 170 per share aggregating to Rs 110 lakh.

Results: In Q2FY25, the company experienced a significant boost in total sales volume, rising by 22.50 per cent to 1.23 lakh tonnes compared to the previous year's 1 lakh tonnes. This growth was primarily driven by increased demand for steel tubes, structural steel products, and value-added products. Despite this positive trend, revenue from operations declined by 5.3 per cent to Rs 705.89 crore due to a steep decrease in raw material prices. However, the company's profitability improved significantly, with PAT increasing by 72 per cent.

In the first half of FY25, the company witnessed significant growth across various key financial metrics. Revenue from operations surged by 13.31 per cent to Rs. 1572.88 crore, primarily driven by higher sales volumes. This growth was accompanied by a substantial increase in profitability, with PAT rising by 95 per cent to Rs 36.16 crore. Total sales volumes also experienced a remarkable 32.55 per cent increase to 2.45 lakh tonnes, fuelled by robust demand for steel tubes and structural steel products.

Credit Rating Update: Hi-Tech Pipes Limited's credit ratings have been upgraded by India Ratings & Research. The company's Fund-Based Working Capital Limit has been upgraded to IND A+/STABLE, while its Non-Fund Based Working Capital Limit has been elevated to IND A1+. This positive rating action reflects Hi-Tech Pipes' robust financial performance and strategic growth initiatives.

Partnership: The company announced its partnership with global superstar Hrithik Roshan as its brand ambassador. This strategic collaboration aims to elevate the brand's global reach and reinforce its commitment to innovation, quality, and strength. With his exceptional talent and charisma, Hrithik Roshan perfectly embodies these values. The partnership will involve multi-channel promotions, including print, electronic media, outdoor advertising, digital marketing, and radio. This milestone underscores Hi-Tech Pipes Limited's continued growth and dedication to providing world-class solutions.

The company has a market cap of over Rs 3,000 crore. The stock is up by 57.85 per cent from its 52-week low of Rs 97.60 per share and gave multibagger returns of over 1,000 per cent in 5 years. Investors should keep an eye on this small-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.