FIIs bought 1,24,80,000 shares: Multibagger steel tube manufacturer's capacity expansion to 1 million tonnes by FY25; Complete details inside!
The stock gave multibagger returns of 112 per cent from its 52-week low of Rs 74 per share and a whopping 770 per cent in 5 years.
Hi-Tech Pipes Ltd is a prominent player in India's steel industry, specializing in the manufacturing and distribution of ERW steel round and section pipes, cold rolled strips, and engineering products. With a vast network of over 5,000 retail stores, the company caters to a diverse clientele across sectors such as infrastructure, construction, automobiles, energy, agriculture, defence, engineering and telecom.
A Strong Foundation and Growth Trajectory - The company's robust brand portfolio, including popular names like Alshakti, Organic, Shakti and Casewell, has contributed to its market leadership. Hi-Tech Pipes boasts six state-of-the-art manufacturing facilities strategically located across India, with a combined installed capacity of 750,000 MTPA. The company is aggressively expanding its operations and aims to achieve 1-million-ton capacity by the end of FY25.
Financial Performance and Market Dominance - Hi-Tech Pipes has showcased exceptional growth, achieving its highest-ever sales volume in Q1FY25. This impressive 45% year-on-year increase reflects the company's strong market position and ability to capitalize on industry trends. The company's strategic focus on product expansion, effective marketing and streamlined processes has been instrumental in driving this remarkable performance.
Commitment to Sustainability Aligned with India's ambitious climate goals, Hi-Tech Pipes is actively working towards decarbonizing its operations. The company has embarked on a comprehensive sustainability strategy, with key initiatives centered around green power generation and green hydrogen production.
- Green Power Adoption: Hi-Tech Pipes is rapidly increasing its reliance on renewable energy sources. With a current solar capacity of 8.5 MW and plans to add another 5.0 MW, the company is well on its way to achieving 30 per cent of its power needs from clean energy.
- Green Hydrogen Exploration: In partnership with a renewable energy leader, Hi-Tech Pipes is exploring the potential of green hydrogen as a clean fuel source. While currently in the development stage, the company aims to establish a 2.4 lakh cubic meter green hydrogen generation capacity.
These initiatives underscore Hi-Tech Pipes' commitment to environmental responsibility and sustainable growth.
DSIJ’s 'Tiny Treasure' service recommends researched Small-Cap stocks with Inherent Growth Potential. If this interests you, do download the service details here.
The company has a market cap of over Rs 2,200 crore. 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. 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.
Today, shares of Hi-Tech Pipes Ltd gained 1.95 per cent to an intraday high of Rs 157 per share from its previous closing of Rs 154 per share. The stock’s 52-week high is Rs 170.25 while its 52-week low is Rs 74. The stock gave multibagger returns of 112 per cent from its 52-week low of Rs 74 per share and a whopping 770 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.
Also Read: Back-to-back 52-week highs in this multibagger stock under Rs 130 after the company reported turnaround net profit in its quarterly results (Q1FY25)