Stock to buy for long-term: SBI see large upside down in these small-cap stocks that are below £ 100 | Einsmark news

Domestic Brokerage House SBI Securities repeated its ‘buy’ rating on Hi-Tech pipes and awarded a revised target price of £ 138-an upward potential of 43.4 percent of the current market price of £ 96.2. According to the broker, the company delivered a strong performance in the quarter of 2025 in March 2025 and remains well placed for growth, supported by new capacity supplements and an increasing part of the value-added products. During the March quarter, Hi-Tech Pipes consolidated revenue of £ 733.7 crore, ebitda of £ 34.9 crore, and profit after tax (PAT) of £ 17.6 crore. SBI Securities said revenue and Pat grew by 7.7 percent and 55.8 percent respectively, while Ebitda fell slightly by 1.2 percent. Sales volumes rose 7.7 percent year-on-year to 2.14 lakh ton, driven by a strong demand from the infrastructure and construction sector. Capacity expansion to grow SBI Securities in the medium term has emphasized that the company’s Sikandraad and Sanand phase-2 units are in advanced stages of commissioning and are expected to start in FY26. Trial production at both facilities is likely to start soon. Once in effect, these units increase the total manufacturing capacity of Hi-Tech Pipes to 1 million tonnes per year (MTPA), higher than the current 0.75 MTPA. The broker further stated that it accepted FY26 and FY27 annual capacity supplements of 0.6 MTPA each, which amounts to a 23.9 percent composite annual growth rate (Cagr) in volumes. SBI Securities expects Ebitda per tonne to improve from £ 3,297 in FY25 to £ 3,639 in FY26 and £ 3,852 in FY27, aided by the higher contribution of value-added products (VAPs). Focus on value-adding products and Capeex plans according to SBI Securities, Hi-Tech Pipes is switching its portfolio of generic steel pipes to more value-added offers such as sun-wrapping tubes and color-covered roof sheets. The contribution of VAPs is expected to rise from 36 percent in FY25 to 42 percent in FY26 on a mixed basis, which improves the company’s total margin profile. In addition, SBI Securities pointed out that the company sets up fresh capital expenditure for FY27, with the aim of increasing the capacity by another 25-30 percent. This includes groundwork in the SRI City project in Chennai and the ongoing development of the Sanand phase-2 facility. The management’s long -term vision is to scale to a capacity of 2 MTPA through FY29. Valuation at the current market price trades the shares at a price-to-earnings (p/e) ratio of 18.1x and 12.5x on FY26 and FY27 EPS estimates of £ 5.3 and £ 7.6 respectively. SBI Securities appreciates the share at 18x ​​FY27 earnings to get to the target price of £ 138. Share price trend The Smallcap shares have lost by more than 14 percent over the past 1 year. In June so far, the share has advanced almost 2 percent after a 5.6 percent strike in May. For that, it was in the red in the red between September 2024 and April 2025. It is currently more than 64 percent of its 52 -week peak of £ 210.75, which was hit in September 2024. Meanwhile, it is trading closer to its 52 -week low of £ 81.53, which was hit last month. Finally, SBI Securities believes that Hi-Tech pipes are well positioned to take advantage of a strong demand in the structural steel tube segment, rising vap contribution and continued expansion of capacity. The broker maintained his positive prospects, highlighting a strong long-term growth visibility and an attractive valuation, offering investors a potential return of 44.2 percent from current levels. Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, and not of currency. We advise investors to check with certified experts before making investment decisions.