Hariom Pipe
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Hariom Pipe Industries is strategically positioned to leverage India's robust infrastructure demand, with management emphasizing a shift towards higher-margin products and diversification into renewable energy. The company's focus on operational efficiency and disciplined capital allocation supports its forecast of stable revenue growth and margins. Recent developments, including the commissioning of a 5 MW solar project and plans to scale it to 60 MW, align with government initiatives and enhance long-term cash flow stability. However, execution risks related to regulatory compliance and commodity price fluctuations remain pertinent. Vista's financial outlook anticipates continued revenue growth consistent with historical performance, supported by a stable balance sheet and a focus on value-added products. The expected upside of 8.14% reflects cautious investor sentiment amid a mixed macroeconomic backdrop, characterized by improving government capex but rising inflationary pressures. Over the next 12-24 months, key opportunities include expanding market share in the thin steel segment and capitalizing on infrastructure spending, while headwinds may arise from regulatory challenges and competition from alternative materials
Why We Like This Stock
- Strategic focus on higher-margin, value-added products enhances revenue potential
- Successful commissioning of renewable energy projects provides stable cash flows and aligns with sustainability goals
- Strong domestic market position and alignment with government infrastructure initiatives support growth
Things To Watch Out For
- Execution risks related to regulatory compliance could impact production and revenue
- Volatility in raw material prices poses a threat to margin stability
- Competition from larger players in the steel industry may pressure market share
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,360 | 1,604 | 1,667 | 1,565 | 1,836 |
| Profit Before Tax (Cr.) | 77 | 83 | 104 | 95 | 112 |
| PBT Margin | 5.7% | 5.2% | 6.2% | 6.1% | 6.1% |
| Net Profit (Cr.) | 62 | 64 | 76 | 69 | 82 |
| Earnings Per Share | 19.9 | 20.7 | 24.5 | 22.4 | 26.5 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Hariom Pipe Industries Limited manufactures and sells iron and steel products in India. It offers mild steel pipes, tubes, and billets; hot and cold rolled square, rectangular, and circular pipes and tubes; hot dipped galvanized pipes; pre galvanized pipes; and cold rolled full hard, pre galvanized, hot rolled pickled and oiled, and cold rolled closed annealed slit coils. The company also provides scaffolding solutions, such as cuplocks, telescopic props/adjustable props/jacks, spans/acro spans/telescopic spans/adjustable spans, H frame systems, fixed base plates, adjustable base plates, stirrup head/universal jacks, spigot/joint pins, jalli/plank/platform products, and clamps/ couplers. It offers its products for various applications, including chemical, construction, automotive, manufacturing, infrastructure, steel manufacturing, ferroalloy production, powder metallurgy, furniture and interior design, fabrication, maintenance, events, metal fabrication, automotive parts manufacturing, industrial, irrigation, plumbing systems, agricultural machinery, roofing, industrial equipment, and transportation. Hariom Pipe Industries Limited was incorporated in 2007 and is based in Hyderabad, India.