Hi-Tech Pipes Ltd. (HITECH) AI Stock Analysis

• Market Cap: ₹14.86B
• Dividend Yield: 0.03%
• Average Volume (3M): 333.05K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 1.81
• Revenue Growth: 9.05%
• EPS Growth: -4.65%
• Country: IN
• Employees: 525
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 1.15
• Shares Outstanding: 203,107,730
• 10 Day Avg. Volume: 115,504
• 30 Day Avg. Volume: 333,048
• PEG Ratio: 1.14
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.61
• P/FCF Ratio: -11.54
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹88.00 ▼(-7.36% Downside)

The score is led by solid financial performance (growth, improving margins, and better balance sheet leverage), but is held back by negative free cash flow from heavy capex. Technicals further pressure the rating with a clear downtrend versus key moving averages and negative MACD, while valuation is supportive but not compelling.

Positive Factors

Revenue growth and margin improvement

Sustained revenue expansion with improving gross and net margins indicates structural demand for its tubular products and operational discipline. That improves long-term earnings power and internal funding for capacity, reducing reliance on short-term market cycles.

Stronger balance sheet and leverage

Material equity growth and falling leverage materially increase financial flexibility. Better debt metrics lower refinancing risk and support sustained capex or working-capital needs without immediate external distress, strengthening resilience through cycles.

Improving operating cash generation

A clear lift in operating cash flow shows the core steel-tube business is generating more cash, a durable indicator of operational health. Strong OCF supports reinvestment and debt servicing even while capex program absorbs free cash flow temporarily.

Negative Factors

Negative free cash flow from heavy capex

Ongoing heavy capex driving negative FCF is a structural risk: it can force external financing, limit dividend or buyback optionality, and compress liquidity cushions. If returns on the capex take time to materialize, funding strain could persist over quarters.

Commodity input exposure

Business economics hinge on ability to pass steel price moves to customers. Prolonged steel price volatility or weaker demand can compress conversion margins. This structural commodity linkage makes margins cyclical and sensitive to upstream cost shocks.

Earnings growth and return profile modest

Modest ROE and negative EPS growth indicate profits are improving slowly relative to equity base. That limits excess cash generation and shareholder returns over the medium term, making sustained outperformance dependent on faster margin expansion or higher asset efficiency.

Hi-Tech Pipes Ltd. Business Overview & Revenue Model

Company Description

Hi-Tech Pipes Limited manufactures and sells steel products for infrastructure, constructions, automobiles, energy, agriculture, defense, engineering, and telecom industries in India. It offers ERW black steel pipes and tubes used in fencing, line pipes, scaffolding, water and gas conveyance, oil country tubular, hand pumps, collieries, thermal powers, telecom, automobiles, and agriculture sector; rectangular and hollow sections; galvanized and pre-galvanized steel pipes and tubes; metal beam crash barriers for applications, such as national highways, expressways, bridges and flyovers, embankments, mines, collieries, high density fast moving traffic areas in cities, motor racing/test drove tracks, village areas along highways, crash test sites, factory areas, traffic safety in airports, plants handling hazardous chemicals, and multi-story parking lots. The company also provides cold rolled sheets and strips used in precision tubes, containers, bicycles, furniture, color coating, galvanizing and tinning, and automobile industry to produce car body panels; and cold formed sections, as well as solar mounting structures and various other galvanized products. It operates through a network of approximately 200 distributors and 300 dealers. 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.

How the Company Makes Money

Hi-Tech Pipes Ltd. generates revenue primarily through the sale of its steel pipes and tubes, which are utilized in numerous applications across different industries. The company has established key revenue streams through direct sales to construction companies, distributors, and manufacturers, as well as long-term contracts with major clients in the infrastructure sector. Additionally, HITECH benefits from partnerships with construction firms and engineering companies, which often lead to bulk orders and repeat business. The company also explores opportunities in international markets, diversifying its revenue sources and enhancing its earnings potential.

Hi-Tech Pipes Ltd. Financial Statement Overview

Summary

Strong revenue growth and improving profitability support the score, with stable EBIT/EBITDA margins and better leverage management. The key drag is cash flow: free cash flow remains negative due to high capex despite improved operating cash flow, creating sustainability risk.

Income Statement

Hi-Tech Pipes Ltd. demonstrates strong revenue growth with a consistent increase in Total Revenue from 2021 to 2025. The Gross Profit Margin for 2025 is approximately 7.5%, and the company has shown an improving Net Profit Margin at 2.4% in 2025, up from previous years. EBIT and EBITDA margins are stable, indicating efficient operational management. Continued revenue growth and improving profitability are positive signs.

Balance Sheet

The company has shown a strong increase in Stockholders' Equity, reaching ₹12.57 billion in 2025. The Debt-to-Equity Ratio has improved significantly from previous years, reflecting better leverage management. The Return on Equity is healthy at 5.8% for 2025, supported by rising net income. The Equity Ratio is strong, indicating a solid financial position, although total debt levels require careful monitoring.

Cash Flow

Operating Cash Flow has improved significantly in 2025, but Free Cash Flow remains negative due to high capital expenditures, indicating potential cash flow risks. However, the Free Cash Flow to Net Income Ratio has improved over time, and the company's ability to generate cash from operations is a positive indicator despite the need for continued investment.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	29.92B	30.68B	26.99B	23.86B	18.77B	13.39B
Gross Profit	2.69B	2.30B	2.37B	2.12B	1.30B	1.29B
EBITDA	1.61B	1.62B	1.13B	989.57M	977.34M	675.64M
Net Income	758.13M	729.49M	439.31M	376.81M	403.26M	228.03M
Balance Sheet
Total Assets	0.00	17.56B	11.79B	9.16B	7.69B	5.99B
Cash, Cash Equivalents and Short-Term Investments	1.83B	1.83B	23.33M	18.89M	9.03M	6.34M
Total Debt	0.00	1.79B	4.02B	2.73B	3.93B	3.17B
Total Liabilities	-12.57B	4.98B	6.02B	4.97B	5.11B	3.94B
Stockholders Equity	12.57B	12.57B	5.76B	4.18B	2.59B	2.05B
Cash Flow
Free Cash Flow	0.00	-1.61B	-2.04B	644.02M	-477.37M	232.14M
Operating Cash Flow	0.00	284.23M	-951.90M	1.34B	-10.64M	641.19M
Investing Cash Flow	0.00	-3.92B	-1.17B	-1.01B	-460.88M	-396.31M
Financing Cash Flow	0.00	3.97B	2.13B	53.82M	640.33M	-245.80M

Hi-Tech Pipes Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 94.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HITECH, the sentiment is Neutral. The current price of 94.99 is above the 20-day moving average (MA) of 80.82, above the 50-day MA of 89.01, and below the 200-day MA of 97.53, indicating a neutral trend. The MACD of -3.80 indicates Negative momentum. The RSI at 49.62 is Neutral, neither overbought nor oversold. The STOCH value of 70.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:HITECH.

Hi-Tech Pipes Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VENUSPIPES	70 Outperform	₹20.93B	22.36	―	0.08%	17.45%	-7.82%
GOODLUCK	69 Neutral	₹35.45B	21.30	―	0.38%	9.57%	3.24%
HITECH	66 Neutral	₹14.86B	18.40	―	0.03%	9.05%	-4.65%
HARIOMPIPE	66 Neutral	₹12.36B	19.79	―	0.17%	17.98%	-0.62%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
RAMASTEEL	55 Neutral	₹12.58B	63.21	―	―	14.51%	-30.02%
ZENITHSTL	43 Neutral	₹765.47M	18.10	―	―	-36.62%	-37.94%

Hi-Tech Pipes Ltd. Corporate Events

Hi-Tech Pipes Schedules Conference Call to Discuss Financial Performance

Hi-Tech Pipes Ltd. has announced a conference call scheduled for November 12, 2025, to discuss its financial and operational performance for the quarter and half-year ending September 30, 2025. This call will provide stakeholders with insights into the company’s financial health and strategic direction, potentially impacting investor confidence and market positioning.