FIIs bought 1,24,80,000 shares: Multibagger steel tube manufacturing stock jumps 6.4 per cent; PAT jumps 125 per cent in Q1 FY25
The stock gave multibagger returns of 122 per cent from its 52-week low of Rs 74 per share and a whopping 815 per cent in 5 years.
Today, shares of Hi-Tech Pipes Ltd gained 6.5 per cent to an intraday high of Rs 164.05 per share from its previous closing of Rs 154.15 per share. The stock’s 52-week high is Rs 170.25 while its 52-week low is Rs 74.
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 is 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.
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On October 1, 2023, the company allotted 55,40,000 fully convertible equity warrants on a preferential basis to individuals belonging to the Promoter, Promoter Group, and Non-Promoter Group. According to the terms of the Warrant Allotment and Chapter V of the SEBI ICDR Regulations, 2018 (Chapter VII of SEBI ICDR Regulations, 2009), warrant holders had the right to convert the warrants into equity shares within eighteen months of the allotment date. Out of the total 55,40,000 fully convertible equity warrants, 53,40,000 have been converted into equity shares. However, 2,00,000 warrants held by one allottee have lapsed due to the non-exercise of the conversion option, resulting in the forfeiture of the 25 per cent consideration received by the Company for these warrants, as per the allotment terms.
The company has a market cap of over Rs 2,400 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 122 per cent from its 52-week low of Rs 74 per share and a whopping 815 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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