Small-cap stock under ₹200: Sharekhan sees 25% upside in Hi-Tech Pipes shares after 60% rally in YTD

  • Small Cap Stocks: Hi-Tech Pipes share price has given Multibagger returns to Investors having risen 142% over a year. Sharekhan sees 25% upside in Hi-Tech Pipes shares after 60% rally in YTD. Here are 4 key reasons

Ujjval Jauhari
Published4 Sep 2024, 12:52 PM IST
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Small-cap stock under  <span class='webrupee'>₹</span>200: Sharekhan sees 25% upside in Multibagger Hi-Tech Pipes shares
Small-cap stock under ₹200: Sharekhan sees 25% upside in Multibagger Hi-Tech Pipes shares(Pixabay)

Small Cap Stocks: Hi-Tech Pipes share price has given Multibagger returns to Investors having risen 142% over a year. Sharekhan sees 25% upside in Hi-Tech Pipes shares after 61% rally in YTD for Hi-Tech Pipes share price. Here' are 4 key reasons

Also Read | Paint stocks surge on sharp drop in crude prices; Asian Paints hits 8-month high

4 key reasons why Sharekhan expects 25% gains for Multibagger small-cap Hi-Tech Pipes share price

  1. Supportive Valuations; Sharekhan analysts stay Positive on Hi-Tech Pipes and they expect a 25% upside in the Hi-Tech Pipes share price, increasing their valuations multiple considering its strong net earnings growth outlook over FY2024-FY2027 estimated.

Also Read | Tata Motors, Ashok Leyland share price : Improved CV sales outlook to help gains

2. Decline in steel prices to accrue positive- The anticipated decline in steel prices that began in Q2FY2025 has eliminated the pricing difference with secondary pipe players . Average NCDEX steel futures corrected by ~6% in Q2FY2025 till date versus Q1FY2025, which has nullified price spread (Rs. 3000-4000 per tonne during Q1FY2025) with secondary pipe manufacturers. Robust tailwinds for volume growth in H2 will aid in achieving the targeted 30% year-over-year rise in volume for FY2025, highlighted Sharekhan.

 

Also Read | Multibagger Ethos share price gains 5%: Remains pick of the week for Axis.

3. Capacity Expansions- A long-term, sustainable demand trend prompts the development of plans for growth that will double capacity to 2 MTPA from FY2025 estimated, in the next three to four years with a planned equity issue of up to Rs. 600 crore for which it has already received Board’s approval. Incremental capacities would involve new product segments and geographies providing a fillip to sustainable healthy volume growth and improvement in operational profitability (led by increased value added product share).

4. Early-mover advantage in solar projects: the freshly commissioned Sanand facility will generate incremental volumes and improved operational profitability.

Sharekhan analyst say that since August 24, 2021, when they initiated coverage, the value of hi-tech has increased by almost 260%. With its robust net earnings growth expectation during FY2024–FY2027 estimated, they remain positive on the company and project a 25% upside, raising their valuation multiple.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions

 

 

 

 

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First Published:4 Sep 2024, 12:52 PM IST
Business NewsMarketsStock MarketsSmall-cap stock under ₹200: Sharekhan sees 25% upside in Hi-Tech Pipes shares after 60% rally in YTD

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