Multibagger stock engaged in manufacturing and distribution of electric resistance welding (ERW) Steel Round & Section Pipes, cold Rolled Strips & Engineering Products jumped 5 percent in the day’s trade upon receiving a work order of Rs. 105 Crores and declaring QIP of Rs. 600 Crores
Price Action
With a market capitalization of Rs. 2,832 Crores, the shares of Hi-Tech Pipes (NS:HITC) Limited were trading at Rs. 187.95 per equity share, up 3 percent from its previous day’s close price of Rs. 182.95. It has delivered multibagger returns of 145 percent in a year.
Is Hi-Tech Pipes a buy or sell? What is its Fair Value? What are the company's health parameters? What are the positive and negative factors driving the company -- ProTips? Know all the answers on the company's overview page here.
What Happened
Hi-Tech Pipes Limited has received a new work order from its key customers in the renewable energy sector for supplying electric resistance welding (ERW) Steel Pipes for a consideration of Rs. 105 Crores. Over the next three months, this work order will be executed from its New state-of-the-art manufacturing facility located in Sanand Unit II Phase I.
Chairman’s Message
Commenting on the occasion, Mr. Ajay Kumar Bansal, Chairman, of Hi-Tech Pipes Ltd, said “We are thrilled to be chosen as a preferred supplier of ERW Steel pipes for such a pivotal sector. Our Sanand unit represents a major investment in both our capabilities and our commitment to sustainability. These contracts not only demonstrate the confidence our clients place in us but also highlight our role in advancing renewable energy infrastructure.”
The steel pipes will be utilized in various applications within the renewable energy sector, including wind farms, solar installations, and other green energy projects. Hi-Tech Pipes is dedicated to providing products that not only meet but exceed industry standards, ensuring durability and performance in the most demanding environments.
With this new contract, we continue to strengthen our position as a leader in the steel pipes manufacturing industry and a key player in the transition to renewable energy.”
Fund Raise
In Addition, the board of directors of the company has considered and approved raising funds not exceeding Rs. 600 Crores by way of the issue of Equity Shares or any other equity-linked instruments or securities, through private placement or through one or more qualified institutions placements (QIPs) or further public issues or a rights issue.
About the Company
Hi-Tech Pipes Limited is engaged in the business of manufacturing and distribution of electric resistance welding (ERW) Steel Round & Section Pipes, cold Rolled Strips & Engineering Products across India.
Its products are used in multiple sectors, including infrastructure, construction, automobiles, energy, agriculture, defense, engineering, telecom and many others. Its product brands include JalShakti, Organic Pipes, FireFighter, Bahubali, Pre-Gal, Casewell, Shakti, Flatmax, Crashguard, and many more.
It has a strong customer base with well-known players like TATA, Reliance (NS:RELI), Adani, Gail (NS:GAIL), Indian Oil (NS:IOC), Hindustan Petroleum (NS:HPCL), Larsen & Toubro, EIL, Afcons, BHEL, NTPC (NS:NTPC), DLF (NS:DLF), and many others.
Financials and Ratios
Its Revenue from operations grew by 35 percent from Rs. 642 Crores in Q1FY24 to Rs. 867 Crores in Q1FY25, accompanied by profits of Rs. 8 Crores to Rs. 18 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 9.68 percent, and a return on capital employed (ROCE) of 13 percent. It has reported a debt-to-equity ratio of 0.63.
Written by: Bharath K.SDisclaimer
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