Multibagger Steel Pipes Stock To Keep Under Radar As Company Announces Commencement Of 5 Mw Captive Green Power Utilisation
The stock gave multibagger returns of 120 per cent from its 52-week low of Rs 91.03 per share and a whopping 1,280 per cent in 5 years.
Hi-Tech Pipes Limited has successfully raised Rs 500 crore through a qualified institutional placement (QIP), demonstrating strong investor confidence in the company's growth prospects. The offering was met with overwhelming demand, attracting bids exceeding Rs 800 crore from a diverse range of domestic and foreign investors. Notable participants included prominent mutual funds, foreign institutions, and treasuries, reflecting a strong belief in Hi-Tech Pipes Limited's ability to navigate industry challenges and capitalize on the expanding market for electric resistance welding (ERW) steel tubes and pipes.
The successful completion of the QIP provides Hi-Tech Pipes Limited with a significant capital infusion to support its growth initiatives, expand its operations and strengthen its market position in the ERW steel tubes and pipes segment. Additionally, the company reported strong sales volume growth for the second quarter and first half of fiscal year 2025. The company reported a 22.50 per cent year-on-year increase in sales volumes for Q2FY25, reaching 1,23,027 MT. For the first half of FY25, sales volumes surged by 32.55 per cent to 245,182 MT. This impressive growth is primarily attributed to increased demand across key sectors such as infrastructure, water transportation, and solar energy. Despite the challenges of the monsoon season, Hi-Tech has effectively capitalized on opportunities presented by government spending on critical infrastructure projects and private investment in renewable energy initiatives.
The company has a market cap of over Rs 3,500 crore. In July 2024, 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 120 per cent from its 52-week low of Rs 91.03 per share and a whopping 1,280 per cent in 5 years.
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About Hi-Tech Pipes Limited.:
One of India’s leading steel processing companies, providing world-class innovative products for nearly four decades with a strong presence in 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 a variety of other galvanised products. The Company operates Six (6) state-of-the-art integrated manufacturing facilities located at Sikandrabad (UP), Sanand (Gujarat), Hindupur (AP) - near Bangalore, and Khopoli (Maharashtra), with an installed capacity of 7,50,000 MTPA, on a consolidated basis and is on its way to reaching 1million Tones Capacity in FY25. The company has a direct marketing presence in over 20 states with more than 450+ Dealers & distributors across India
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. In its annual results, the company reported net sales of Rs 2,699 crore and net profit of Rs 44 crore in FY24. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.