📌 At a Glance
Hi-Tech Pipes Ltd (CMP ₹94.30) just dropped blockbuster FY25 results:

• 🔺 Revenue: ₹3,068 Cr (↑14%)
• 🔺 PAT: ₹72.95 Cr (↑66%)
• 🔺 EBITDA: ₹160.03 Cr (↑39%)
• 🔺 Sales Volume: 4.85 lakh MT (↑24%)
• 🔻 Stock: Down 2.92% today

They’ve cut working capital, expanded capacity, turned into a solar torque tube leader, and are supplying to projects like BSF fencing & Kavach anti-collision systems. So why isn’t the market cheering? Welcome to India’s favorite genre: “Infra Play Being Ignored by Dalal Street.”

🏢 About the Company

This is no longer just a pipe maker — it’s a full-blown infrastructure backbone stock with global ambition.

📊 FY25 Financials Summary

That 66% PAT jump on just 14% revenue growth is a clear sign of one thing: efficiency unlocked.

📅 Q4 FY25 Highlights

Margins were slightly compressed QoQ due to commodity price movement — but volume saved the day.

🛠️ Strategic Growth Moves

1. 🏭 Capacity Expansion

• Commissioned Sanand Unit 2 – Phase II
• Sikandrabad greenfield plant near completion
• Target: 1 million TPA capacity by FY26
• Vision: 2 million TPA by FY29

These aren’t vanity expansions — they’re aligned to infra demand across solar, construction, railway, and road segments.

2. ☀️ Global Leader in Solar Torque Tubes

• Exporting to North America, Europe, Middle East
• High-margin: Used in solar tracking systems
• Backbone of utility-scale solar projects
• Sanand facility dedicated to this vertical

Torque tubes are to solar what tracks are to trains. High volume, high replacement, recurring business.

3. 🇮🇳 Nation-Building Projects

• Supplied to Kavach anti-collision rail tech
• Pipes for BSF fencing
• Supplies for NHAI-approved crash barriers

Hi-Tech is increasingly playing the OEM + infra-component role in India’s public sector Capex engine.

🧠 EduInvesting Take

“This isn’t a pipe company. This is a B2G infra-tech stock disguised as metal sheets.”

Hi-Tech Pipes is quietly executing on:

• Capacity expansion ✔️
• Margin expansion ✔️
• Debt reduction ✔️
• Sectoral relevance ✔️
• Green energy positioning ✔️

Yet, the market trades it at ~10–12x FY25 earnings while junk SME stocks are running on “revamped hotel websites.”

🧮 Forward-Looking Fair Value Estimate

Assume:

• FY26 PAT = ₹90 Cr (conservative 22% growth)
• Shares = 7.5 Cr
• EPS = ₹12
• Assign P/E of 18x (due to improved margin, infra + solar exposure)

👉 Fair Value = ₹12 × 18 = ₹216
📍 CMP = ₹94.30
➡️ ~129% upside — if market wakes up.

✅ Positives

• 📈 Highest-ever revenue + volume
• 📉 Debt-to-equity crushed from 0.70x → 0.15x
• 🧾 Improved ROCE and working capital cycle
• ☀️ Solar torque tubes: global moat product
• 🛠️ Infra-heavy pipeline = 3–5 year demand certainty
• 📊 Credit rating upgrade → access to better borrowing

⚠️ Risks & Red Flags

• 🏗️ Infra slowdown risk in case of post-election policy shocks
• 🔧 Margin pressure in commoditized pipe segment
• 🏭 Execution delays at new plants = capex return drag
• 📉 Market continues to treat it as cyclical metal stock
• 💰 Requires strong working capital control to maintain momentum

🏁 FY26 Outlook

• Sikandrabad unit = capacity & product diversification
• Solar segment likely to hit full throttle (exports + domestic)
• Margins likely to expand further on operating leverage
• Sales target: Likely to cross ₹3,500 Cr in FY26
• Stock re-rating possible post 2–3 quarters of delivery

🧾 Final Word

Hi-Tech Pipes isn’t a flashy stock. No buzzwords, no fintech collabs. Just pipes, solar tubes, and margin discipline.

It’s the kind of stock fund managers discover one year late, after it’s doubled — and then pretend they held it all along.

CMP ₹94.30 might just be the pre-capacity breakout zone.
If the market ever rewards execution, this one’s going to bend steel, not break.

🗓️ Published: May 26, 2025
✍️ By: Prashant Marathe
Tags: Hi-Tech Pipes FY25 results, torque tubes India, solar pipe manufacturers, BSF fencing supplier, NSE HITECH, Sanand Unit 2, Sikandrabad plant, infra capex, EduInvesting