FIIs bought 99,77,902 shares & DIIs bought 1,72,71,679 shares: Multibagger Steel Pipe Stock In Focus As Company Achieved Ever Highest Sales Volume
The stock is up by 60 per cent from its 52-week low of Rs 102.45 per share and gave multibagger returns of 899 per cent in 5 years.
On Thursday, shares of Hi-Tech Pipes Ltd gained 3.60 per cent to Rs 153.85 per share from its previous closing of Rs 158.15 per share. The stock’s 52-week high is Rs 210.75 per share and its 52-week low is Rs 102.45 per share.
Hi-Tech Pipes Limited, a leading manufacturer of steel tubes and pipes in India, announced its outstanding sales performance for the third quarter and nine months ended FY25. The company achieved an unprecedented sales volume of 1,24,233 MT in Q3 FY25, marking a robust 26.10% year-on-year (YoY) growth. This impressive momentum continued throughout the year, with sales volumes for the nine months ended FY25 reaching 3,69,415 MT, reflecting a significant 30.33% YoY increase.
A key driver of this remarkable growth was the strong demand for the company's solar torque tubes. These high-quality products are essential components in the rapidly expanding solar energy sector in India. Recognized for their durability, precision, and adherence to stringent industry standards, Hi-Tech Pipes' solar torque tubes have become the preferred choice for numerous large-scale solar power projects. This robust performance in the renewable energy sector, coupled with substantial growth in other key sectors like infrastructure and construction, underscores the company's strong market position and its ability to capitalize on diverse growth opportunities.
Hi-Tech Pipes Limited is a prominent Indian steel processing company with a 40-year legacy of innovation. They offer a diverse range of high-quality products, including 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 various galvanized products. With six cutting-edge manufacturing facilities strategically located across India, Hi-Tech Pipes boasts an impressive installed capacity of 750,000 MTPA, poised to reach 1 million tons by FY25. The company maintains a strong market presence through a vast network of over 450 dealers and distributors across the nation.
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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.
The company has a market cap of over Rs 3,000 crore. The stock is up by 60 per cent from its 52-week low of Rs 102.45 per share and gave multibagger returns of 899 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.