1100% rally in 5 years! Multibagger small-cap stock jumps after Fitch rating upgrade

Multibagger Small-cap Stock: Shares of Hi-Tech Pipes Ltd., a prominent player in India’s steel tube and pipe industry, gained nearly 5 per cent on Monday, December 16 as India Ratings & Research, a Fitch Group company, upgraded the firm's credit ratings. This enhancement in rating underscores Hi-Tech Pipes' healthy revenue and volume growth, the company said in an exchange filing today.

India Ratings & Research upgraded the company's fund-based working capital limit to IND A+, with a stable outlook, and non-fund-based working capital limit to IND A1+.

Hi-Tech Pipes share price history

Hi-Tech Pipes share price gained 4.47 per cent to ₹171.75 in intra-day trade. Around 1 pm, the stock was trading at ₹167.75 on the BSE, up 2.04 per cent. The company enjoys a market capitalisation of ₹3,357.37 crore, as per BSE. 

Hi-Tech Pipes share price has risen by 68 per cent on a year-to-date (YTD) basis, rising from a level of ₹119.45 to ₹201.60, as per BSE. Hi-Tech Pipes share price has delivered an impressive 130 per cent return over the past year.

On a longer-term time frame, the stock price of Hi-Tech Pipes has shown an extraordinary surge, delivering a staggering 1,100 per cent return over the past five years, earning it a reputation as a multibagger in the small-cap space.

Rating Rationale

According to the India Ratings & Research, the company has demonstrated remarkable growth in revenue, sales volume, and operational efficiency. Key highlights include a 33 per cent year-on-year sales volume growth in the first half of FY25 and consistent improvement in EBITDA per tonne, driven by a focus on value-added products.

The company is ramping up its operations with new facilities in Gujarat and Uttar Pradesh, adding significant capacity to its existing portfolio. Hi-Tech Pipes is also exploring green energy initiatives, including captive solar power and green hydrogen, aimed at cost efficiency and sustainable growth, as per India Ratings & Research.

“India Ratings & Research upgrading our credit rating underscores our robust financial management, consistent operational excellence, and the trust the financial community places in our company,” said the company's chairman Ajay Kumar Bansal.

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