BSE CODE 504959

Dalal Street Investment Journal - - CONTENTS -

We had rec­om­mended Hi Tech Pipes in is­sue no. 9 dated April 3- April 16, 2017 un­der “Choice Scrip” section when the scrip was trad­ing at ₹133. Our rec­om­men­da­tion was backed by pos­i­tive macroe­co­nomic growth fac­tors, ex­pan­sion plans and at­trac­tive val­u­a­tions.

Hi-tech pipes is amongst lead­ing steel pro­cess­ing com­pa­nies in In­dia. It is en­gaged in the busi­ness of man­u­fac­tur­ing and sup­ply­ing steel pipes, hol­low sec­tions, tubes, cold rolled coils and strips and a range of other gal­va­nized prod­ucts. The com­pany de­signs and sup­plies steel pipes for var­i­ous wa­ter, air and gas trans­port ap­pli­ca­tions. The com­pany has tran­si­tioned and di­ver­si­fied its busi­ness from Tubu­lar seg­ment to In­te­grated cold rolling com­plexes and Con­ti­nous gal­va­niz­ing. Re­cently, HI- Tech Pipes suc­cess­fully com­pleted com­mis­sion­ing of the 72,000 MT4-HI cold Rolling mill at their Sikadarad plant which will in­crease op­er­a­tional ef­fi­cien­cies.

On the fi­nan­cial front, Hi-tech Pipes posted a 17.14 per cent hike in its rev­enue to ₹663.55 crore in the fis­cal year 2017 as com­pared to ₹566.47 crore in the pre­vi­ous fi­nan­cial year. The com­pany’s PBIDT in­creased by 14.31 per cent to ₹36.51 crore in FY17 on a year on year ba­sis. The profit after tax of the com­pany also rose by 35.23 per cent to ₹8.79 crore in FY17 as against ₹6.50 crore in the pre­vi­ous fi­nan­cial year.

The com­pany main­tained a TTM PE of 24.74x against an in­dus­try PE of 18.02x. While the com­pany’s peers, Aan­chal Is­pat and Nel­cast main­tained a TTM PE of 17.69x and 18.04x, re­spec­tively.

The stock is cur­rently trad­ing at₹. 220 on NSE. Since our rec­om­men­da­tion, the share price of Hi-tech Pipes has soared more than 69 per cent. Con­sid­er­ing the cur­rent mar­ket con­di­tions, we rec­om­mend our reader-in­vestors to BOOK PROFIT in the stock.

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