Mumbai : Three lesser-known small-cap and one leading mid-cap pipe makers have generated stupendous returns in the past one year, outperforming the broader market indices they are not a part of.
Among small caps, Rama Steel Tubes has generated the highest return of 167% followed by Hi-Tech Pipes (71%) and JTL Industries (45%), while midcap stock APL Apollo Tubes has gained nearly 25% during the same period. % return given. Nifty Small Cap 100 has given negative returns of 12% in the last one year, which has been followed by strong returns from small caps. The returns of APL Apollo are higher than the modest 6.4% return of Nifty Midcap 100.
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Jyotivardhan Jaipuria, MD, Valentis Advisors, said, “These companies have shown strong fundamental performance and have benefited immensely from the Prime Minister’s pet project Har Ghar Jal and the government’s infrastructure spending across the country.” across the industry. “His outlook remains strong after a strong performance.”
SK Joshi, ED, Khambatta Securities says, “These companies are benefiting from the thrust on infra development and have the promise of generating strong investor returns in terms of performance.”
In fact, some of these companies have attracted institutional interest over the past year, thanks to their index-beating performance. Kotak Life Insurance Company bought over 9,00,000 shares approx. 24 cr in JTL Industries while Quant MF buys 2,00,000 shares in Hi-Tech Pipes in bulk deal on BSE on Nov 18 17.6 crore in bulk deal on NSE.
“We have a positive outlook on Hi-Tech Pipes with an upside of 20% (market value was then 606) Sharekhan by BNP Paribas said in a note on November 16 following the company’s Q2 performance, “carry forward our valuation multiple to September 2024 earnings.”
“Consolidated revenue beat estimates in Q2FY2023 due to solid volume growth. The EBITDA/tonne was marginally ahead of estimates. Adjusting for the one-time provision, net profit exceeded estimates.
Brokerage Dhanky Securities said in a note, “Despite near-term challenges to margins due to fall in input prices, we remain constructive on the medium to long-term growth prospects of APAT, given its market leadership, strong distribution reach, product innovation Continued attention is being paid to it.” After APL Apollo’s Q2 numbers in November.
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