850% rally in five years! Multibagger small-cap stock jumps after Q3 business update

Stock Market Today: Small-cap multibagger stock Hi-Tech Pipes, a manufacturer and supplier of steel pipes and tubes, witnessed a 3 per cent increase following a robust update for the third quarter of financial year 2024-2025 (Q3FY25).

Hi-Tech Pipes, in an exchange filing on Thursday, said it achieved a 26.10 per cent year-on-year (YoY) growth in its sales volume to 1,24,233 MT in Q3FY25, its highest ever. Meanwhile, for the first nine months of the ongoing fiscal, sales volumes grew to 3,69,415 MT, recording a 30.33% YoY increase.

The company's solar torque tubes were a significant contributor to this growth as these products are in high demand due to the rapid expansion of the solar energy sector in India. Additionally, Hi-Tech Pipes also witnessed substantial growth in other key sectors, including infrastructure and construction.

Commenting on the performance, Ajay Kumar Bansal, Chairman, Hi-Tech Pipes Ltd, said: "We are happy with the strong sales momentum witnessed in Q3 and the first nine months of FY25. This performance underscores our commitment to innovation, quality, and meeting the dynamic needs of the market. Hi-Tech Pipes’ continued focus on expanding product portfolio and optimising production capacity has further reinforced our leadership position in the steel tubes and pipes sector."

Hi-Tech Stock Price Trend

The strong Q3 business update sparked a 2.7 per cent rise in Hi-Tech Pipes share price to ₹161.79 apiece.

Hi-Tech Pipes share price today opened at ₹159, slightly higher than ₹157.56 apiece and extended gains to ₹161.79 on the NSE.

The small-cap stock, with a market capitalisation of ₹3,257 crore, has rallied 34 per cent in the last one year. On a longer-term horizon of five years, Hi-Tech Pipes stock has surged from ₹16.52 on January 3, 2020, to ₹161.50 apiece today, recording a whopping 877 per cent gains, thus giving multibagger returns to its investors.

Hi-tech Pipes has been in business for over 40 years, specialising in products like steel pipes, hollow sections, tubes, solar torque tubes, cold rolled coils and strips, road crash barriers, solar mounting structures, GP/GC sheets, color-coated coils, and other galvanized products. It operates six advanced manufacturing facilities in Sikandrabad (UP), Sanand (Gujarat), Hindupur (AP) near Bangalore, and Khopoli (Maharashtra), with a total production capacity of 7,50,000 metric tons per year.

The company aims to reach a capacity of 1 million tons by FY25. It has a strong marketing presence in over 20 states and works with more than 450 dealers and distributors across India.