1,000 Per Cent Multibagger Returns: Steel Pipes Manufacturer Bags Rs 105 Crore Worth Order from Renewable Energy Sector
The stock gave multibagger returns of 159 per cent from its 52-week low of Rs 74.47 per share and a whopping 1,000 per cent in 5 years.
Hi-Tech Pipes Ltd has secured a substantial order worth Rs 105 crore from key players in India's renewable energy sector. The order, comprising the supply of ERW Steel Pipes, underscores the company's position as a leading manufacturer of steel tubes and pipes in the country. This significant development highlights the increasing reliance on renewable energy sources and the crucial role of high-quality steel components in supporting this growth.
To fulfil this substantial order, Hi-Tech Pipes will leverage its newly established, cutting-edge manufacturing facility in Sanand Unit II Phase I. Equipped with advanced technology and optimized production processes, this plant is specifically designed to cater to the stringent quality requirements of the renewable energy industry. The company expects to complete the order within the next three months, demonstrating its efficiency and commitment to meeting customer demands on time.
Additionally, the company intends to raise additional capital through the issuance of new securities. These securities may consist of equity shares or other eligible financial instruments, such as convertible securities. The exact type of security or combination of securities will be determined following applicable laws. The company plans to offer these securities to the public, institutional investors, or existing shareholders, or through a combination of these methods. The total amount to be raised through this issuance is capped at Rs 600 crore, inclusive of any premium over the face value of the securities. The final price of the securities will be determined as permitted by law.
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Today, shares of Hi-Tech Pipes Ltd gained 5.35 per cent and made a fresh new 52-week high of Rs 192.75 per share from its previous closing of Rs 182.95 per share.
Hi-Tech Pipes Ltd is a dominant player in India's steel industry, producing and distributing a vast array of steel products through an expansive network of over 5,000 retail outlets. Catering to a diverse clientele, the company's influence spans critical sectors including infrastructure, construction, automotive, energy and defence. Built on a strong foundation of branding and manufacturing excellence, Hi-Tech Pipes has experienced substantial growth, operating from six advanced manufacturing facilities with a combined capacity of 7,50,000 MTPA. The company's strategic expansion plans aim to elevate production to 1 million tons by the end of FY25, solidifying its market leadership position through popular brands like Alshakti, Organic, Shakti and Casewell.
According to Quarterly Results, revenue increased by 35 per cent to Rs 867.51 crore and net profit increased by 125 per cent to Rs 18.05 crore in Q1FY25 compared to Q1FY24. The total sales volume was 1,22,155 tonnes in Q1FY25 as compared to 84,489 tonnes in Q1FY24. an increase of 45 per cent YOY. In its annual results, the company reported net sales of Rs 2,699 crore and net profit of Rs 44 crore in FY24.
The company has a market cap of over Rs 3,300 crore. In July 2024, FIIs bought FIIs bought 1,24,80,000 shares and increased their stake to 8.72 per cent compared to 1.82 per cent in June 2024. The stock gave multibagger returns of 159 per cent from its 52-week low of Rs 74.47 per share and a whopping 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.