Multibagger Steel Pipe Stock Jumps After Announcing Credit Rating Upgrade by India Ratings & Research to IND A+/STABLE/ IND A1+
The stock is up by 76 per cent from its 52-week low of Rs 97.60 per share and gave multibagger returns of over 1,100 per cent in 5 years.
On Monday, shares of Hi-Tech Pipes Ltd gained 4.47 per cent to Rs 171.75 per share from its previous closing of Rs 164.40 per share. The stock’s 52-week high is Rs 210.75 and its 52-week low is Rs 97.60.
Hi-Tech Pipes Limited, a leading manufacturer of premium-quality steel pipes, has achieved a significant milestone with a credit rating upgrade from India Ratings & Research (a Fitch Group company). 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. The company's strong revenue and volume growth, particularly driven by the successful commercialization of its Sanand-II facility, has been instrumental in this achievement. Additionally, the company's diversified product portfolio, operational efficiency, and focus on value-added products have contributed to its improved EBITDA per tonne.
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.
Earlier, 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. Hrithik Roshan, with his exceptional talent and charisma, 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.
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About Hi-Tech Pipes Limited.:
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.
The company has a market cap of over Rs 3,400 crore. In October 2024, FIIs bought 99,77,902 shares and increased their stake to 12.98 per cent compared to 9.31 per cent in September 2024. The stock is up by 76 per cent from its 52-week low of Rs 97.60 per share and gave multibagger returns of over 1,100 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.