NSEI:HITECH

Stock Analysis Report

Executive Summary

Hi-Tech Pipes Limited manufactures and sells steel products for infrastructure, construction, agriculture, and other industries in India.

Rewards

PE ratio (6.9x) is below the Indian market (13.8x)

Earnings grew by 9.7% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap (₹2B)



Snowflake Analysis

Proven track record with mediocre balance sheet.


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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

Stable Share Price: HITECH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.6%

HITECH

0.8%

IN Metals and Mining

1.9%

IN Market


1 Year Return

-5.8%

HITECH

-5.8%

IN Metals and Mining

8.1%

IN Market

Return vs Industry: HITECH matched the Indian Metals and Mining industry which returned -5.5% over the past year.

Return vs Market: HITECH underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

HITECHIndustryMarket
7 Day9.6%0.8%1.9%
30 Day30.2%7.9%3.3%
90 Day12.2%16.8%6.5%
1 Year-5.7%-5.8%-4.2%-5.8%10.1%8.1%
3 Yearn/a6.3%-5.7%35.1%28.0%
5 Yearn/a35.3%13.4%36.6%24.2%

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 compared to its fair value and its price relative to the market?

7.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HITECH (₹166.65) is trading above our estimate of fair value (₹162.26)

Significantly Below Fair Value: HITECH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HITECH is good value based on its PE Ratio (6.9x) compared to the Metals and Mining industry average (10.2x).

PE vs Market: HITECH is good value based on its PE Ratio (6.9x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HITECH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HITECH is overvalued based on its PB Ratio (1.1x) compared to the IN Metals and Mining industry average (0.9x).


Next Steps

Future Growth

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

21.3%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hi-Tech Pipes has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

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

29.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HITECH has high quality earnings.

Growing Profit Margin: HITECH's current net profit margins (2%) are higher than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: HITECH's earnings have grown significantly by 29.5% per year over the past 5 years.

Accelerating Growth: HITECH's earnings growth over the past year (9.7%) is below its 5-year average (29.5% per year).

Earnings vs Industry: HITECH earnings growth over the past year (9.7%) exceeded the Metals and Mining industry 1.7%.


Return on Equity

High ROE: HITECH's Return on Equity (15.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hi-Tech Pipes's financial position?


Financial Position Analysis

Short Term Liabilities: HITECH's short term assets (₹3.5B) exceed its short term liabilities (₹2.9B).

Long Term Liabilities: HITECH's short term assets (₹3.5B) exceed its long term liabilities (₹845.9M).


Debt to Equity History and Analysis

Debt Level: HITECH's debt to equity ratio (173.4%) is considered high.

Reducing Debt: HITECH's debt to equity ratio has reduced from 265.6% to 173.4% over the past 5 years.

Debt Coverage: HITECH's debt is not well covered by operating cash flow (18.8%).

Interest Coverage: HITECH's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet

Inventory Level: HITECH has a high level of physical assets or inventory.

Debt Coverage by Assets: HITECH's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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

0.14%

Current Dividend Yield


Dividend Yield vs Market

company0.1%marketbottom25%0.6%markettop25%2.2%industryaverage3.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: HITECH's dividend (0.15%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: HITECH's dividend (0.15%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

Stable Dividend: HITECH is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: HITECH is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: HITECH is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HITECH's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


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?

3.4yrs

Average board tenure


CEO

Ajay Bansal (62yo)

7.3yrs

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

Compensation vs Market: Ajay's total compensation ($USD84.67K) is above average for companies of similar size in the Indian market ($USD50.75K).

Compensation vs Earnings: Ajay's compensation has been consistent with company performance over the past year.


Board Age and Tenure

3.4yrs

Average Tenure

35yo

Average Age

Experienced Board: HITECH's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹1,779,47926 Sep 19
Ajay Bansal
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares10,000
Max Price₹177.95
Buy₹6,012,67620 Mar 19
Ajay Bansal
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares34,103
Max Price₹198.22

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Management Team

  • Anish Bansal (35yo)

    Whole-Time Director

    • Tenure: 10.9yrs
    • Compensation: ₹3.60m
  • Ajay Bansal (62yo)

    Chairman & MD

    • Tenure: 7.3yrs
    • Compensation: ₹6.00m
  • Arun Sharma

    Company Secretary & Compliance Officer

    • Ashok Aggarwal

      Head of Commercial

      • Arvind Bansal

        Chief Financial Officer

        • Tenure: 2yrs
      • Ravindar Tiwari

        Head of Sales & Marketing

        • Anand Amin

          Head of Projects

          • Santosh Rai

            Head of Accounts & Finance


            Board Members

            • Tanvi Kumar (31yo)

              Non-Executive Independent Director

              • Tenure: 4.8yrs
            • Anish Bansal (35yo)

              Whole-Time Director

              • Tenure: 10.9yrs
              • Compensation: ₹3.60m
            • Ajay Bansal (62yo)

              Chairman & MD

              • Tenure: 7.3yrs
              • Compensation: ₹6.00m
            • Vivek Goyal

              Non-Executive Independent Director

              • Tenure: 1.9yrs
              • Compensation: ₹100.00k
            • Prashant Saxena

              Non-Executive Independent Director

              • Tenure: 1.9yrs
              • Compensation: ₹100.00k

            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: ₹1.925b
            • Shares outstanding: 10.70m
            • Website: https://www.hitechpipes.in

            Number of Employees


            Location

            • Hi-Tech Pipes Limited
            • 505, Pearls 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 for infrastructure, construction, agriculture, and other industries in India. The company offers steel pipes and tubes, rectangular and hollow sections, galvanized steel pipes and tubes, metal beam crash barriers, cold rolled sheets and strips, and cold formed sections, as well as solar mounting structures and various other galvanized products. It operates a network of dealers and distributors. Hi-Tech Pipes Limited also exports its products. The company was formerly known as Ram Lal Harbans Lal Limited and changed its name to Hi-Tech Pipes Limited in October 1986. Hi-Tech Pipes Limited was incorporated in 1985 and is headquartered in New Delhi, India. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/18 12:53
            End of Day Share Price2020/01/17 00:00
            Earnings2019/09/30
            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.