Broker’s call: Hi-Tech Pipes (Buy)


Target: ₹138

CMP: ₹102.97

Hi-Tech Pipes reported Revenue/EBITDA/PAT of ₹733.7 crore/₹34.9 crore/₹17.6 crore, respectively. Revenue/PAT increased 7.7/58.5 per cent y-o-y, while EBITDA was down 1.2 per cent y-o-y. The total sales volume for Q4-FY25/FY25 increased by 7.7/24.1 per cent y-o-y to 0.1/0.5 MTPA, in line with our estimates, led by robust demand in the infrastructure and construction sectors.

We believe Hi-Tech pipes has strong growth prospects in the structural steel tubes space, given its Capacity expansion from 0.6 MTPA in FY23 and 0.8 MTPA in FY24 to 1 MTPA in FY26E, the transition from generic products to value-added products, product portfolio enhancement on the back of Solar torque tubes and colour-coated roofing sheets, and Healthy demand for structural steel tubes over the medium and long term.

The Sikandrabad and Sanand Unit-2 (Phase 2) facilities are currently in the advanced stages of commissioning and are expected to come on stream during FY26. In FY27, the company aims to increase its capacity by another 25-30 per cent, for which the groundwork at the Sri City project near Chennai and Phase-3 of the Sanand unit-2 is already in progress.

We value the stock at a P/E of 18x on FY27E EPS of ₹7.6 to arrive at our TP of ₹138.

Published on June 6, 2025

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