Hi-Tech pipes has mammoth growth prospects & can be multibagger

[Pee Vee]

We believe, Hi-Tech pipes has mammoth growth prospects in the structural steel tubes space given its (a) Capacity expansion from 0.58 MTPA in FY23, 0.75 MTPA in FY24 to 1 MTPA in FY25E, (b) Transition from generic products to value-added products, (c) Product portfolio enhancement on back of Solar torque tubes, color coated roofing sheets and (d) Healthy demand for structural steel tube over medium and long term (Budgeted Allocation for Jal Jeevan Mission of Rs 70,163 cr in Budget 24-25). At the CMP of Rs 175.3, the stock is currently trading at a P/E of 45.4x/26.1x/18.0 of its FY25E/FY26E/FY27E EPS of Rs 3.9/Rs 6.7/Rs 9.8 respectively. We assign a higher P/E multiple of 22x and retain our BUY rating on the stock with price target of Rs 215 thus providing an upside potential of 22.5%.