Low PE Stock Hi Tech Pipes Clocks 80% PAT Growth, Sales Up 24% In Q1

Hi-Tech Pipes has reported a 79.16 per cent increase in its net profit in Q1 of FY2024. The company in a filing said that it clocked a net profit of Rs 8.02 crore, showing an increase of 80 per cent YoY.

The firm reported a profit of Rs 4.48 crore for the quarter that ended June 2022.

Revenue from operations was up by 24 per cent to Rs 642.17 crore in Q1FY24 as compared to Rs 516.17 crore in Q1FY23,

Total sales volumes increased by 21 per cent to 84.5k tonnes in Q1FY24 as compared to 70k tonnes in Q1FY23.

EBITDA increased by 19 per cent to Rs 21.20 crore as compared to Rs 17.83 crore a year ago.

"The Sales of the coated products of the company like GP Coils, GC Sheets, COlour Coated COils, Color Profile Sheets are picking up well," the company said in the filing.

"The company has registered volume growth of 21%. This volume growth has been majorly contributed by increased Sales Volume of Value Added Products viz. GP Coils, Color Coated Coils & Sheets. Now the Company is well positioned in this market segment," Ajay Kumar Bansal, Chairman and Managing, Director, Hi-Tech Pipes, said.

"Greenfield facility of Large Dia. Pipes at Makhiyav, Sanand Gujarat is on the verge of commissioning with commercial production set to commence from Q3FY24 onwards. This facility, in conjunction with our color coating line will not only help us to increase the volumes but also improve the margins and strengthen the company's reach into different territories," he added.

On Friday, the shares of Hi-Tech Pipes ended on the NSE at Rs 76 apiece down by 3.86% over the previous close of Rs 79.05. The stock made a 52-week-high of Rs 98.97 on (23-Jan-2023) and a 52-week-low of Rs 50.24 on (12-Aug-2022). The company has a price-to-earning ratio of 23.6, lower than its sector PE ratio of 33.2, as per the data of Trendlyne.