Mehabe score: 2 G Factor: 5 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 6.
Description
Hi-Tech Pipes business of manufacturing of ERW Steel Round & Section Pipes, cold Rolled Strips & Engineering Products and distribution of the same across india.
Main Points
Capacity at multiple locations
The Company operates state-of-the-art integrated manufacturing facilities at Sikandrabad (UP), Sanand (Gujarat), Hindupur (AP) and Khopoli (Maharashtra), with an installed capacity of almost 5,80,000 MTPA, on a consolidated basis. The Company has direct marketing presence in over 17 states with more than 300 distributors across India.Site:HITECH
Market Cap:
Rs 483 cr
Price:
431.0
Trading pe:
21.2x
Book-value:
155/share
Div yield:
0.06 %
Earning yield:
8.15%
Face-value:
10.0/share
52week high:
445.85
52week low:
76.55
Technical Analysis
Stock trades at 431.0, above its 50dma 381.17. It also trades above its 200dma 278.92. The stock remains bullish on techicals
The 52 week high is at 445.85 and the 52week low is at 76.55
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Stock is trading at 2.78 times its book value
– has low interest coverage ratio.
-Dividend payout has been low at 0.77% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 16.1x. Apollo Tricoat trades at the industry’s max P/E of 37.17x. HITECH trades at a P/E of 21.2x
– Industry’s mean G-Factor is 4.8 while the mean Piotski score is 8.0. HITECH has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 2.7%. The max 1- month return was given by Hi-Tech Pipes: a return of 17.17 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 391.51 cr compared to Rs 299.78 cr for period ended Mar 2020, a rise of 30.6%
Operating Profits reported at Rs 19.3 cr for period ended Mar 2021 vis-vis 14.47 for period ended Mar 2020 .
Operating Margins expanded 10.3 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 5.82 compared to Rs 8.48 for previous quarter ended Dec 2020 and Rs 3.85 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1341.0 cr for period ended Mar 2021 vis-vis sales of Rs 1210.0 cr for the period ended Mar 2020, a growth of 9.8%. The 3 year sales cagr stood at 9.7%.
Net Profit reported at Rs 23.0 cr for period ended Mar 2021 vis-vis sales of Rs 20.0 cr for the period ended Mar 2020, rising 13.0%.
Company recorded a Net Profit CAGR of 3.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 440% on a 1 Year basis vis-vis a return of 5% over the last 3 Years. – The compounded sales growth on a TTM bassis is 11% vis-vis a compounded sales growth of 10% over the last 3 Years. – The compounded profit growth on a TTM basis is 12% vis-vis a compounded profit growth of 3% over the last 3 Years.
Ratios
Conclusion
– – Stock is trading at 2.78 times its book value
– has low interest coverage ratio.
-Dividend payout has been low at 0.77% of profits over last 3 years
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 381.17 and is trading at 431.0, thus bullish price action wise.
