BSE CODE 504959
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.