Corporate Feature     

Published: Feb 15, 2023
Updated: Feb 15, 2023

Hi-Tech Pipes

Multi-bagger for investors

Hi-Tech Pipes Limited (HTPL), one of India’s leading ERW pipe manufacturers and suppliers, has reported the highest- ever sales in the quarter ended December 2023. Meanwhile, the company has allotted Rs 383 crore worth of share warrants. Its board of directors was scheduled to meet on January 28 to discuss the stock split and announce the Q3FY23 results.

On the bourses
BSE: 543411
NSE: HITECH
CMP: Rs 958
Analyst projections
Short term: Rs 1,200
Positional: Rs 1,600

Incorporated in 1985, Hi-Tech Pipes is engaged in the manufacturing of a wide range of steel tubes and pipes. The company last paid a dividend of Rs 0.50 in September 2022. Its products find application in a wide range of industries such as infrastructure, telecom, defence, power distribution, railways, airports, real estate, automobiles and agriculture.

TECH-DRIVEN

Being a research-driven piping company, its transformation into a research-led piping solutions provider is an example of how investing in the technology of tomorrow is being done. This research-based approach helped in periodically introducing innovative product lines, enabled it to shrink process time, improve process predictability and strengthen cost efficiency – the basis of business sustainability.

The company manufactures diverse products like pipes, coils, sheets & strips and engineered products across its five facilities. It derives this ability from a core competence covering the management of diverse processes.

Hi-Tech Pipes has modern R&D facilities with the latest equipment which helps it manufacture worldclass products. The company has strengthened the quality of its products through prudent investments to improve procedural discipline, acquire best-in-class certifications and implement mission-critical technologies. Its clients include leading blue chip corporates like the Adani group, the Tatsa, NTPC, AFCONS and Ashok Leyland.

Record sales

According to a filing by the company, it has recorded the highest sales volumes of 91,232 thousand tonnes in the third quarter of the current fiscal, registering a 40 per cent rise on a yoy basis. The figure stood at 65,088 thousand tonnes in the corresponding period of the last fiscal.

Rs 383 crore in equity warrants

The board of Hi-Tech Pipes allotted 55.40 lakh fully convertible equity warrants at Rs 692 each, aggregating Rs 383.36 crore, to the promoter group and the nonpromoter group.

The company said the warrants will be converted into fully paid-up equity shares within 18 months from the date of allotment of the warrants.