700 Per Cent Multibagger Returns: Steel Tube Manufacturer Ramps Up Green Power with 5 MW Solar & Hydrogen Project
The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 74 per share and a whopping 700 per cent in 5 years.
Hi-Tech Pipes Ltd, a leading Indian manufacturer of steel tubes and pipes, has made significant strides towards decarbonizing its manufacturing facilities. This ambitious plan aligns with the Government of India's goal of achieving net-zero carbon emissions by 2070, with an interim target of 30 per cent to 35 per cent reduction by 2030.
Boosting Green Power and Embracing Hydrogen Technology
The company has outlined a multi-pronged approach to achieve its decarbonization targets. Here's a breakdown of the key initiatives:
- Green Power Generation: Hi-Tech Pipes is committed to increasing its green power portfolio. They already have 8.5 MW of existing solar capacity through rooftop installations and group captive open-access projects. Additionally, they are planning to install 2.0 MW more by December 2024 and have signed a Power Purchase Agreement (PPA) for another 3.0 MW, bringing the total green power sourcing to an impressive 13.5 MW. This signifies nearly 30 per cent of the company's total power needs being met by renewable sources.
- Green Hydrogen Gas Generation: Hi-Tech Pipes has partnered with a leading renewable energy supplier to explore the generation and captive use of green hydrogen gas. Green hydrogen is a clean-burning fuel produced by splitting water using renewable energy. This partnership will leverage the supplier's expertise in green hydrogen technology and expedite project development. While currently, they have no existing capacity for green hydrogen generation, the proposed capacity stands at 2.4 lakh cubic meters.
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Earlier, Hi-Tech Pipes Ltd, one of the leading steel tubes and pipes manufacturers in India, announced that it has achieved the highest sales volume in its history for Q1FY25. This remarkable milestone is a testament to the company's commitment to excellence, innovation and customer satisfaction. In Q1, Hi-Tech Pipes recorded a significant increase of 45 per cent with a total sales volume of 1,22,155-MT compared to the same period last year from 84,489-MT and 13 per cent on Q-o-Q compared to the sales volume of 1,07,721-MT in Q4FY24. This achievement is attributed to the company's strategic initiatives, including expansion of product lines, enhanced marketing efforts and process optimizations.
Today, shares of Hi-Tech Pipes Ltd gained 4.72 per cent to an intraday high of Rs 149.70 per share from its previous closing of Rs 142.95 per share. The stock’s 52-week high is Rs 170.25 while its 52-week low is Rs 74.
The company has a market cap of over Rs 2,200 crore and promoters have increased their stake in Q1FY25. In its Quarterly Results (Q4FY24) and annual results (FY24), the company reported positive numbers with compounded sales growth of 26 per cent and compounded profit growth of 24 per cent for the last 3 years.
The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 74 per share and a whopping 700 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.
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