Infrastructure spending helps small pipe makers generate big returns

Among small-caps, Rama Steel Tubes generated the highest return of 167%, followed by Hi-Tech Pipes (71%) and JTL Industries (45%), while mid-cap APL Apollo Tubes returned almost 25% over the same period. is raising the return of Strong small-cap returns came as the Nifty Small Cap 100 delivered a negative 12% return over the past year. APL Apollo’s return beats the Nifty Midcap 100’s return of just 6.4%.

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“These companies have shown strong fundamental performance and have benefited greatly from the prime minister’s favorite project, Har Ghar Jal, and government infrastructure spending across the country.” The outlook remains strong.”

Khambatta Securities ED SK Joshi added:

In fact, some of these companies have attracted institutional interest thanks to their outperformance over the index over the past year. Kotak Life Insurance Co bought over 9,00,000 shares worth nearly ¥JTL Industries for $24 million and Quant MF for 200,000 shares in Hi–Tech Pipes in bulk BSE transaction on November 18 ¥17.6 billion in bulk NSE transactions.

“We remain positive on tech pipe with a 20% upside (market price at the time was ¥606) We carry forward our valuation multiples to the September 2024 results,” Sharekhan said in a November 16 memo after BNP Paribas’ second quarter results.

“Consolidated sales in the second quarter of 2023 exceeded expectations, driven by strong volume growth. EBITDA/tonne slightly exceeded estimates. Profits exceeded expectations.”

In a memo, brokerage firm Danki Securities said, “Given its market leadership, strong distribution reach, and relentless focus on product innovation, APAT will continue to grow despite near-term margin challenges from declining input prices. We remain positive about our medium- to long-term growth prospects.” In November he will post APL Apollo’s second quarter numbers.