Hariom Pipe Industries Ltd - Stock Valuation and Financial Performance

BSE: 543517 | NSE: HARIOMPIPE | Steel & Iron Products | Small Cap

Hariom Pipe Inds. Share Price

459.55 1.85 0.40%
as on 28-Mar'24 14:22

DeciZen - make an informed investing decision on Hariom Pipe Inds.

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Hariom Pipe Industries stock performance -

mw4me loader
P/E Ratio (SA):
23.07
Market Cap:
1,321.2 Cr.
52-wk low:
441.1
52-wk high:
740

Is Hariom Pipe Industries Ltd an attractive stock to invest in?

1. Is Hariom Pipe Industries Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Hariom Pipe Industries Ltd is a below average quality company.

2. Is Hariom Pipe Industries Ltd undervalued or overvalued?

The key valuation ratios of Hariom Pipe Industries Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Hariom Pipe Industries Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Hariom Pipe Industries Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Hariom Pipe Inds.:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Hariom Pipe Industries Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 3.9%5%0.4%8.7%19.9%15.4%12.5%15.3%22.2%12.4%-
Value Creation
Index
-0.7-0.6-1.0-0.40.40.1-0.10.10.6-0.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 84.469.473.887.21051341612544316441,074
Sales YoY Gr.--17.7%6.3%18.1%20.6%27.1%20.3%58.1%69.4%49.5%-
Adj EPS 0.10.1-1.71.75.96.168.918.816.719.8
YoY Gr.-160%-1407.7%NA255.7%2%-1.5%49.4%111%-11.1%-
BVPS (₹) 000000041.759.5125.3158.7
Adj Net
Profit
0.10.1-1.61.66.587.915.13246.257
Cash Flow from Ops. -1.70.1-1.646.63.20.510.43.7-101-
Debt/CF from Ops. -11.2164.4-14.95.93.317.3132.17.723.5-2.9-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 25.3%43.7%58.8%49.5%
Adj EPS 90.8%23%41%-11.1%
BVPSNANANA110.7%
Share Price - - - -5.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
0.40.9-11.19.832.727.218.725.437.219.414
Op. Profit
Mgn %
47.53.47.714.512.814.613.51312.711.9
Net Profit
Mgn %
0.10.2-2.21.86.264.967.47.25.3
Debt to
Equity
1.41.71.61.411.61.41.10.90.9-
Working Cap
Days
661001341281191181391177911274
Cash Conv.
Cycle
44728573918710195678733

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 58.79%

Net Profit is growing at healthy rate in last 3 years 40.99%

Debt to equity has declined versus last 3 years average to 0.86

Sales growth is good in last 4 quarters at 109.25%

Return on Equity has declined versus last 3 years average to 14.00%

Latest Financials - Hariom Pipe Industries Ltd.

Standalone Consolidated
TTM EPS (₹) 19.8 -
TTM Sales (₹ Cr.) 1,074 -
BVPS (₹.) 158.7 -
Reserves (₹ Cr.) 429 -
P/BV 2.88 -
PE 23.07 -
From the Market
52 Week Low / High (₹) 441.05 / 740.00
All Time Low / High (₹) 169.35 / 740.00
Market Cap (₹ Cr.) 1,321
Equity (₹ Cr.) 28.9
Face Value (₹) 10
Industry PE 24.8

Management X-Ray of Hariom Pipe Inds.:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Hariom Pipe Inds.

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales84697487105134161254431644
Operating Expenses 8164718090117137220374562
Manufacturing Costs0000262537407182
Material Costs60435959608491168279451
Employee Cost 112226861819
Other Costs 201910201125710
Operating Profit 3527151723345682
Operating Profit Margin (%) 4.0%7.5%3.4%7.7%14.5%12.7%14.6%13.5%13.0%12.7%
Other Income 0001000131
Interest 22233478810
Depreciation 2332325689
Exceptional Items 0000000000
Profit Before Tax 00-22101211214363
Tax 00-1144361117
Profit After Tax 00-22688153246
PAT Margin (%) 0.1%0.2%-2.1%1.8%6.2%6.0%4.9%6.0%7.4%7.2%
Adjusted EPS (₹)0.10.1-1.71.76.06.16.08.918.816.7
Dividend Payout Ratio (%)0%0%0%0%10%12%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 1313151723364871101346
Share Capital 4477141313171728
Reserves 1010810923355484319
Minority Interest0000000000
Debt182224232250606676274
Long Term Debt6886732273434125
Short Term Debt121415161519333241149
Trade Payables23104581541016
Others Liabilities 22238917332973
Total Liabilities 3641504758103140174216709

Fixed Assets

Gross Block242930313466789497187
Accumulated Depreciation11141719212429354352
Net Fixed Assets121513121243495954135
CWIP 4000100810103
Investments 0000000000
Inventories1118212732396080115212
Trade Receivables66106101023202786
Cash Equivalents 001004210105
Others Assets215337661068
Total Assets 3641504758103140174216709

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity -20-24731104-101
PBT 00-22101211214363
Adjustment 45555512131419
Changes in Working Capital -5-5-4-3-5-9-21-20-46-165
Tax Paid 0000-4-4-2-4-7-18
Cash Flow From Investing Activity -2-2-1-1-4-32-12-23-4-222
Capex -2-2-1-1-4-32-12-16-3-129
Net Investments 0000000000
Others 0000000-8-1-92
Cash Flow From Financing Activity 413-4-3329120426
Net Proceeds from Shares 0030070130204
Net Proceeds from Borrowing 0000000171104
Interest Paid -2-2-2-3-3-3-7-7-8-11
Dividend Paid 0000-10-1000
Others 642-112917-117129
Net Cash Flow 000004-2-1-1104
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)0.421.07-14.8314.941.9828.8618.7425.4137.220.67
ROCE (%)5.517.190.5912.6830.2522.217.9421.4729.8917.03
Asset Turnover Ratio2.782.121.852.092.351.951.561.933.061.83
PAT to CFO Conversion(x)-INFNANN/A21.170.380.130.670.13-2.2
Working Capital Days
Receivable Days19253327232432261424
Inventory Days36668686868295846071
Payable Days12234044292846211011

Hariom Pipe Industries Ltd Stock News

Hariom Pipe Industries Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Hariom Pipe Inds. on 28-Mar-2024 14:22 is ₹459.6.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 14:22 the market cap of Hariom Pipe Inds. stood at ₹1,321.2.
The latest P/E ratio of Hariom Pipe Inds. as of 28-Mar-2024 14:22 is 23.07.
The latest P/B ratio of Hariom Pipe Inds. as of 28-Mar-2024 14:22 is 2.88.
The 52-week high of Hariom Pipe Inds. is ₹740.0 and the 52-week low is ₹441.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Hariom Pipe Inds. is ₹1,074 ( Cr.) .

About Hariom Pipe Industries Ltd

Hariom Pipe Industries is an integrated manufacturer of Mild Steel (MS) Pipes, Scaffolding, HR Strips, MS Billets, and Sponge Iron. It uses iron ore to produce Sponge Iron which is then processed across various stages to manufacture its final products viz. MS Pipes and Scaffolding making its manufacturing process cost-effective.’ The company caters to the southern and western Indian markets for its products. The company’s MS Pipes are marketed and sold in these geographies under the brand name “Hariom Pipes”. Substantial portion of the Sponge Iron, MS Billets and HR Strips produced by the company is used for captive consumption in the manufacturing MS Pipes and Scaffolding.

The company manufactures MS Pipes and Scaffoldings of different specifications and cater, directly and indirectly, to customer requirements in various sectors such as housing, infrastructure, agriculture, automotive, power, cement, mining, solar power and engineering. Its integrated plant at Mahabubnagar District in Telangana (Unit I) manufactures finished steel products from iron scrap and Sponge Iron and its other plant at Anantapur District, Andhra Pradesh (Unit II) exclusively manufactures Sponge Iron. Unit II is located near Bellary, which is one of the hubs in South India for iron ore production. The iron ore required to produce Sponge Iron at Unit II is mostly procured through the online bidding process. Most of the Sponge Iron produced at the Unit II is transported to the Unit I and used as a raw material for manufacturing MS Billets, HR Strips, MS Pipes and Scaffolding. The manufacturing of Sponge Iron at its Unit II has reduced its dependence on external sources for raw materials since its acquisition in September, 2020.

The integration of Unit I and II has optimized its operations and profitability through backward integration which helps with efficient logistics, inventory management, procurement, energy savings and quality control. The company’s quality control team led by qualified chemists and engineers ensure that its raw materials as well as end products are tested on all quality parameters to ensure that it is compliant with the required market standards. It mainly sells MS Pipes through more than two hundred (200) distributors and dealers. It also sells MS Pipes and Scaffoldings to certain developers and contractors directly as B2B sales. Its key differentiator is its range of product specifications in terms of thickness, length, quality, availability and customised products.

Business area of the company

The company is a premium manufacturer of iron and steel products. The company has gone from strength to strength, evolving into an integrated steel manufacturer with a stronghold in the South Indian market. With a diverse product portfolio consisting of Mild Steel (MS) Billets, Pipes and Tubes, Hot Rolled (HR) Coils and Scaffolding Systems, its top-quality products cater to a variety of industrial applications across multiple sectors.

Products:

  • Sponge Iron
  • MS Billets
  • HR Strips
  • MS Pipes
  • Scaffolding, Tube Accessories and Fittings

Major Events and Milestones

  • 2007: Incorporation of Company.
  • 2010: Commencement of production of HR Strips and MS Tubes at our Unit I.
  • 2011: Commencement of production of Scaffolding at our Unit I.
  • 2013: Commencement of production of HR Slit Coil & MS Tubes at our Unit I.
  • 2018: Conversion of Company from private limited to public limited.
  • 2018: Achieved Turnover of Rs 10,000 lakh.
  • 2020: Acquisition of Unit II at Anantapur.
  • 2021: Receipt of ISO 9001:2015 (Quality Management System) in respect of manufacturing of MS Billets, HR Strips, MS Pipes, MS Sections, GP Pipes and Scaffoldings.
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