Up 115% from 52-week-low, metal stock sets record date for 10:1 stock split
With a market worth of ₹1,074 Cr, Hi-Tech Pipes Ltd. is a small-cap company with operations in the metal industry. With its headquarters in New Delhi, India, Hi-Tech Pipes is one of the country’s top suppliers and manufacturers of ERW pipes. It produces a broad variety of steel tubes and pipes. The corporation declared a 10:1 stock split while announcing its Q3 results. The corporation has established a record date for the purpose of an announced corporate action in order to determine the shareholders’ eligibility.
On Friday, the company said in a stock exchange filing that “This is to inform you that members of the Company through postal ballot have approved sub-division of Equity Shares of the Company from one (1) equity share of face value of Rs. 10/- each to ten (10) equity shares of face value of Re. 1/- each. Therefore, Pursuant to Regulation 42 (2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has fixed Friday, i.e. March 17, 2023 as the Record Date, to ascertain the names of shareholders entitled for sub-division (split) of each of the equity share of the Company having a face value of Rs. 10/- each sub-divided into 10 (Ten) Equity Shares having a face value of Re. 1/- each.”
In the third quarter of fiscal year 23 or Q3FY23, the firm recorded revenue from operations of Rs. 569.29 crore, up 29% YoY from Rs. 440.02 crore in the third quarter of fiscal year 22. The company reported its highest-ever net sales volumes in Q3FY23, climbing by 40% to 91,232 tonnes from 65,088 tonnes in Q3FY22.
During Q3FY23, Hi Tech Pipes recorded its highest-ever net profit as PAT jumped by 28% YoY to Rs. 13.02 crore from Rs. 10.17 crore in Q3FY22, EBITDA grew by 14% to Rs. 28.58 crore from Rs. 25.09 crore recorded in the same quarter of FY22.
Hi Tech Pipes launched commercial production of a color coating line in Sikandrabad, Uttar Pradesh, during the quarter that ended in December 2022 or Q3FY23. According to the statement made by management, this will assist in markedly lowering the cost element in the manufacturing process of the company.
On Friday, the shares of Hi-Tech Pipes closed on the NSE at ₹849.00 apiece level, up by 0.81% from the previous close of ₹842.15. The stock has climbed 65.19% over the past year, but it has dropped 0.64% YTD in 2023. The stock has appreciated 44.33% over the past six months while losing 4.41% over the past month. The stock touched a 52-week–high of ₹989.65 on (23-Jan-2023) and a 52-week-low of ₹393.20 on (20-June-2022), indicating that at the current market price, the stock is trading 14.21% below the 1 year high and 115.92% above the 1 year low. During Q3FY23, the company recorded a promoter shareholding of 59.32%, FIIs stake of 0.57% and a public stake of 40.12%.
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