NSEI:HITECH

Stock Analysis Report

Executive Summary

Hi-Tech Pipes Limited manufactures and sells steel products in India.

Snowflake

Fundamentals

Proven track record with mediocre balance sheet.

Risks

  • Hi-Tech Pipes has significant price volatility in the past 3 months.
  • Hi-Tech Pipes is not covered by any analysts.

Similar Companies

Share Price & News

How has Hi-Tech Pipes's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.3%

NSEI:HITECH

-0.2%

IN Metals and Mining

0.4%

IN Market


1 Year Return

-39.7%

NSEI:HITECH

-33.5%

IN Metals and Mining

-13.4%

IN Market

HITECH underperformed the Metals and Mining industry which returned -32.4% over the past year.

HITECH underperformed the Market in India which returned -12.8% over the past year.


Share holder returns

HITECHIndustryMarket
7 Day-3.3%-0.2%0.4%
30 Day-21.7%-13.0%-3.7%
90 Day-40.2%-18.1%-7.4%
1 Year-39.7%-39.7%-30.8%-33.5%-11.7%-13.4%
3 Yearn/a4.0%-7.2%18.7%12.4%
5 Yearn/a-9.2%-24.0%37.5%24.5%

Price Volatility Vs. Market

How volatile is Hi-Tech Pipes's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hi-Tech Pipes undervalued based on future cash flows and its price relative to the stock market?

6.72x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Hi-Tech Pipes's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Hi-Tech Pipes's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Hi-Tech Pipes is good value based on earnings compared to the IN Metals and Mining industry average.

Hi-Tech Pipes is good value based on earnings compared to the India market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Hi-Tech Pipes, we can't assess if its growth is good value.


Price Based on Value of Assets

Hi-Tech Pipes is overvalued based on assets compared to the IN Metals and Mining industry average.


Next Steps

Future Growth

How is Hi-Tech Pipes expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

0.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Hi-Tech Pipes is high growth as no revenue estimate data is available.

Hi-Tech Pipes's earnings are expected to grow by 0.9% yearly, however this is not considered high growth (20% yearly).

Unable to compare Hi-Tech Pipes's revenue growth to the India market average as no estimate data is available.

Hi-Tech Pipes's earnings growth is positive but not above the India market average.

Hi-Tech Pipes's earnings growth is positive but not above the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Hi-Tech Pipes will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Hi-Tech Pipes performed over the past 5 years?

32.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Hi-Tech Pipes has delivered over 20% year on year earnings growth in the past 5 years.

Hi-Tech Pipes's 1-year earnings growth is less than its 5-year average (19.7% vs 32.1%)

Hi-Tech Pipes's earnings growth has exceeded the IN Metals and Mining industry average in the past year (19.7% vs 10.1%).


Return on Equity

Hi-Tech Pipes has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Hi-Tech Pipes used its assets more efficiently than the IN Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

Hi-Tech Pipes has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Hi-Tech Pipes's financial position?


Financial Position Analysis

Hi-Tech Pipes is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Hi-Tech Pipes's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Hi-Tech Pipes's level of debt (175.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (284.9% vs 175.9% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are not well covered by earnings (EBIT is 2.4x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.3x debt.


Next Steps

Dividend

What is Hi-Tech Pipes's current dividend yield, its reliability and sustainability?

0.14%

Current Dividend Yield


Dividend Yield and Payments Analysis

Hi-Tech Pipes's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.63%).

Hi-Tech Pipes's dividend is below the markets top 25% of dividend payers in India (2.51%).

Hi-Tech Pipes is not paying a notable dividend for India, therefore no need to check if the payments are stable.

Hi-Tech Pipes is not paying a notable dividend for India, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Hi-Tech Pipes's dividends as it is not paying a notable one for India.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Hi-Tech Pipes's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average board tenure


CEO

Ajay Bansal (62yo)

6.8yrs

Tenure

₹6,000,000

Compensation

Mr. Ajay Kumar Bansal serves as the Chairman of Hi-Tech Pipes Limited and has been its Managing Director since October 1, 2012. Mr. Bansal has more than 35 years of experience in manufacturing of Steel Pip ...


CEO Compensation Analysis

Ajay's remuneration is higher than average for companies of similar size in India.

Ajay's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Board Age and Tenure

1.5yrs

Average Tenure

35yo

Average Age

The average tenure for the Hi-Tech Pipes board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Buy₹6,012,67620 Mar 19
Ajay Bansal
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares34,103
Max Price₹198.22
Buy₹1,127,65109 Oct 18
Ajay Bansal
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares4,674
Max Price₹241.26
Buy₹2,727,70004 Sep 18
Anish Bansal
EntityIndividual
Role
Member of the Board of Directors
Whole-Time Executive Director
Shares10,000
Max Price₹272.77
Buy₹2,727,67904 Sep 18
Ajay Bansal
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares10,000
Max Price₹272.77

Ownership Breakdown


Management Team

  • Anish Bansal (35yo)

    Whole-Time Executive Director

    • Tenure: 10.5yrs
    • Compensation: ₹4.45m
  • Ajay Bansal (62yo)

    Chairman & MD

    • Tenure: 6.8yrs
    • Compensation: ₹6.00m
  • Arun Sharma

    Company Secretary & Compliance Officer

    • Tenure: 0.0yrs
  • Ashok Aggarwal

    Head of Commercial

    • Tenure: 0.0yrs
  • Arvind Bansal

    Chief Financial Officer

    • Tenure: 1.6yrs
  • Ravindar Tiwari

    Head of Sales & Marketing

    • Tenure: 0.0yrs
  • Anand Amin

    Head of Projects

    • Tenure: 0.0yrs
  • Santosh Rai

    Head of Accounts & Finance

    • Tenure: 0.0yrs

Board Members

  • Tanvi Kumar (31yo)

    Non-Executive & Independent Director

    • Tenure: 4.4yrs
  • Anish Bansal (35yo)

    Whole-Time Executive Director

    • Tenure: 10.5yrs
    • Compensation: ₹4.45m
  • Ajay Bansal (62yo)

    Chairman & MD

    • Tenure: 6.8yrs
    • Compensation: ₹6.00m
  • Ajay Sahay

    Non-Executive Independent Director

    • Tenure: 1.5yrs
    • Compensation: ₹40.00k
  • Vivek Goyal

    Non-Executive Independent Director

    • Tenure: 1.5yrs
    • Compensation: ₹40.00k
  • Prashant Saxena

    Non-Executive Independent Director

    • Tenure: 1.5yrs
    • Compensation: ₹20.00k

Company Information

Hi-Tech Pipes Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hi-Tech Pipes Limited
  • Ticker: HITECH
  • Exchange: NSEI
  • Founded: 1985
  • Industry: Steel
  • Sector: Materials
  • Market Cap: ₹1.852b
  • Shares outstanding: 10.30m
  • Website: https://www.hitechpipes.in

Number of Employees


Location

  • Hi-Tech Pipes Limited
  • 505, Pearl Omaxe Tower
  • Netaji Subhash Place
  • New Delhi
  • Delhi
  • 110034
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HITECHNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2016

Biography

Hi-Tech Pipes Limited manufactures and sells steel products in India. It offers steel pipes and tubes, hollow sections, cold rolled sheets and strips, galvanized coils, metal crush barriers, and cold forme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 12:55
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.