Hariom Pipe Industries Ltd: Share Price Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 18, 2024, 8:11 pm

Market Cap	1,753 Cr.
Current Price	565
High / Low	889/440
Stock P/E	29.3
Book Value	178
Dividend Yield	0.11 %
ROCE	14.6 %
ROE	13.5 %
Face Value	10.0
PEG Ratio	1.63

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

View Share Price Target for Hariom Pipe Industries Ltd

Competitors of Hariom Pipe Industries Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Mukat Pipes Ltd	24.2 Cr.	20.4	26.0/9.54	173	5.76	0.00 %	%	%	5.00
Hariom Pipe Industries Ltd	1,753 Cr.	565	889/440	29.3	178	0.11 %	14.6 %	13.5 %	10.0
Earthstahl & Alloys Ltd	51.4 Cr.	42.0	66.0/0.00	34.0	30.7	0.00 %	8.22 %	5.21 %	10.0
Crimson Metal Engineering Company Ltd	4.57 Cr.	10.3	10.3/9.38		12.5	0.00 %	7.27 %	21.7 %	10.0
Welspun Corp Ltd	20,664 Cr.	788	824/440	18.8	230	0.63 %	20.2 %	19.8 %	5.00
Industry Average	9,803.23 Cr	611.43		50.85	145.94	0.33%	16.71%	14.57%	4.69

All Competitor Stocks of Hariom Pipe Industries Ltd

Quarterly Result

Month	Jun 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Sales	87	106	124	142	127	123	252	240	302	280	331	343	314
Expenses	76	92	107	126	111	104	220	212	266	247	289	299	272
Operating Profit	11	13	17	16	16	18	31	28	36	33	42	45	42
OPM %	13%	13%	14%	11%	13%	15%	12%	12%	12%	12%	13%	13%	13%
Other Income	0	2	0	0	0	0	0	1	1	2	1	1	1
Interest	2	2	2	2	2	2	5	4	7	11	10	11	10
Depreciation	2	2	2	2	2	2	3	5	9	10	10	12	12
Profit before tax	8	12	13	13	12	14	24	20	20	14	24	23	22
Tax %	25%	20%	25%	25%	25%	28%	27%	22%	27%	29%	29%	23%	27%
Net Profit	6	9	10	10	9	10	17	15	15	10	17	18	16
EPS in Rs	3.35	5.49	5.76	3.74	3.64	3.98	6.25	5.59	5.35	3.55	5.81	5.66	5.09

Last Updated: November 6, 2024, 6:34 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

Month	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	87	105	134	161	254	431	644	1,153	1,256
Expenses	80	90	117	137	220	374	562	1,015	1,101
Operating Profit	7	15	17	23	34	56	82	139	155
OPM %	8%	14%	13%	15%	13%	13%	13%	12%	12%
Other Income	1	0	0	0	1	3	1	5	5
Interest	3	3	3	7	8	8	10	33	39
Depreciation	2	3	2	5	6	8	9	34	41
Profit before tax	2	10	12	11	21	43	63	77	80
Tax %	33%	36%	31%	30%	29%	25%	26%	27%
Net Profit	2	6	8	8	15	32	46	57	59
EPS in Rs	9.47	5.94	6.21	5.98	8.92	18.83	16.73	19.68	20.37
Dividend Payout %	0%	0%	10%	0%	0%	0%	0%	3%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	200.00%	33.33%	0.00%	87.50%	113.33%	43.75%	23.91%
Change in YoY Net Profit Growth (%)	0.00%	-166.67%	-33.33%	87.50%	25.83%	-69.58%	-19.84%

Hariom Pipe Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 7 years from 2017-2018 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	%
5 Years:	54%
3 Years:	66%
TTM:	38%

Compounded Profit Growth
10 Years:	%
5 Years:	47%
3 Years:	56%
TTM:	4%

Stock Price CAGR
10 Years:	%
5 Years:	%
3 Years:	%
1 Year:	-14%

Return on Equity
10 Years:	%
5 Years:	18%
3 Years:	18%
Last Year:	14%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 1:32 pm

Month	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	2	11	13	13	17	17	28	29	31
Reserves	10	9	21	35	54	84	348	435	519
Borrowings	29	25	56	68	80	87	297	372	336
Other Liabilities	7	13	14	23	23	27	37	44	140
Total Liabilities	47	58	105	140	174	216	709	880	1,025
Fixed Assets	12	12	43	50	59	54	135	366	352
CWIP	0	1	0	0	8	10	103	13	31
Investments	0	0	0	0	0	0	0	0	0
Other Assets	36	46	62	90	107	152	471	501	642
Total Assets	47	58	105	140	174	216	709	880	1,025

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	4	7	6	1	10	4	-101	5
Cash from Investing Activity +	-0	-4	-32	-12	-23	-4	-222	-182
Cash from Financing Activity +	-4	-3	30	9	12	-0	426	74
Net Cash Flow	-0	-0	4	-2	-1	-1	104	-102

Free Cash Flow

Month	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-22.00	-10.00	-39.00	-45.00	-46.00	-31.00	-215.00	-233.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	23	36	29	52	28	23	49	39
Inventory Days	165	196	169	251	174	150	172	124
Days Payable	28	31	21	63	9	14	13	8
Cash Conversion Cycle	161	201	177	240	193	159	207	155
Working Capital Days	121	111	116	133	123	107	166	131
ROCE %		30%	22%	18%	21%	28%	18%	15%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoters	66.03%	66.03%	66.03%	60.92%	60.91%	60.91%	60.91%	58.28%	57.16%	57.15%
FIIs	2.18%	2.70%	2.11%	2.52%	2.22%	2.81%	2.58%	6.51%	10.10%	9.55%
DIIs	0.43%	0.37%	0.37%	0.18%	0.00%	0.00%	0.00%	0.00%	0.16%	0.38%
Public	31.35%	30.90%	31.51%	36.38%	36.86%	36.28%	36.52%	35.21%	32.59%	32.93%
No. of Shareholders	38,508	33,471	32,856	30,703	35,945	37,850	39,806	43,563	44,373	45,720

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE / ROE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	20.34	18.30	18.83	10.64	5.98
Diluted EPS (Rs.)	18.34	18.29	18.83	9.80	5.93
Cash EPS (Rs.)	31.41	20.15	23.60	12.61	9.88
Book Value[Excl.RevalReserv]/Share (Rs.)	160.79	135.85	59.50	41.18	31.18
Book Value[Incl.RevalReserv]/Share (Rs.)	160.79	135.85	59.50	41.18	31.18
Dividend / Share (Rs.)	0.00	0.00	0.00	0.00	0.60
Revenue From Operations / Share (Rs.)	399.51	233.10	253.63	149.84	121.49
PBDIT / Share (Rs.)	49.81	29.92	34.66	20.61	18.03
PBIT / Share (Rs.)	38.08	26.51	29.88	16.93	14.13
PBT / Share (Rs.)	26.80	22.75	25.06	12.50	8.56
Net Profit / Share (Rs.)	19.68	16.73	18.82	8.92	5.98
PBDIT Margin (%)	12.46	12.83	13.66	13.75	14.83
PBIT Margin (%)	9.53	11.37	11.78	11.29	11.62
PBT Margin (%)	6.70	9.76	9.88	8.34	7.04
Net Profit Margin (%)	4.92	7.17	7.42	5.95	4.91
Return on Networth / Equity (%)	12.23	12.31	31.63	21.66	19.16
Return on Capital Employeed (%)	18.51	14.46	36.48	26.45	24.01
Return On Assets (%)	6.45	6.51	14.80	8.70	5.66
Long Term Debt / Equity (X)	0.25	0.33	0.34	0.48	0.58
Total Debt / Equity (X)	0.79	0.78	0.86	0.94	1.37
Asset Turnover Ratio (%)	1.45	1.39	2.21	1.62	0.00
Current Ratio (X)	1.68	2.12	1.97	1.62	1.45
Quick Ratio (X)	0.64	1.07	0.47	0.39	0.48
Inventory Turnover Ratio (X)	3.72	3.03	3.19	2.58	0.00
Dividend Payout Ratio (NP) (%)	0.00	0.00	0.00	0.00	10.04
Dividend Payout Ratio (CP) (%)	0.00	0.00	0.00	0.00	6.07
Earning Retention Ratio (%)	0.00	0.00	0.00	0.00	89.96
Cash Earning Retention Ratio (%)	0.00	0.00	0.00	0.00	93.93
Interest Coverage Ratio (X)	4.42	7.96	7.19	4.65	3.24
Interest Coverage Ratio (Post Tax) (X)	2.74	5.45	4.90	3.01	2.07
Enterprise Value (Cr.)	1644.52	1500.00	0.00	0.00	0.00
EV / Net Operating Revenue (X)	1.43	2.33	0.00	0.00	0.00
EV / EBITDA (X)	11.44	18.15	0.00	0.00	0.00
MarketCap / Net Operating Revenue (X)	1.13	2.03	0.00	0.00	0.00
Retention Ratios (%)	0.00	0.00	0.00	0.00	89.95
Price / BV (X)	2.81	3.49	0.00	0.00	0.00
Price / Net Operating Revenue (X)	1.13	2.03	0.00	0.00	0.00
EarningsYield	0.04	0.03	0.00	0.00	0.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Hariom Pipe Industries Ltd as of December 18, 2024 is: 704.85

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 18, 2024, Hariom Pipe Industries Ltd is Undervalued by 24.75% compared to the current share price 565.00

Intrinsic Value of Hariom Pipe Industries Ltd as of December 18, 2024 is: 831.42

Calculation basis:

Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 18, 2024, Hariom Pipe Industries Ltd is Undervalued by 47.15% compared to the current share price 565.00

Last 5 Year EPS CAGR: 17.96%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a high average ROCE of 19.00%, which is a positive sign. The company has higher reserves (168.33 cr) compared to borrowings (150.00 cr), indicating strong financial stability. The company has shown consistent growth in sales (202.00 cr) and profit (35.44 cr) over the years.	The stock has a high average Working Capital Days of 126.00, which may not be favorable. The stock has a high average Cash Conversion Cycle of 186.63, which may not be favorable.

Stock Analysis

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Hariom Pipe Industries Ltd:
1. Net Profit Margin: 4.92%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 18.51% (Industry Average ROCE: 14.62%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 12.23% (Industry Average ROE: 12.75%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 2.74
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 0.64
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 29.3 (Industry average Stock P/E: 47.67)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0.79
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

Hariom Pipe Industries Ltd. is a Public Limited Listed company incorporated on 21/06/2007 and has its registered office in the State of Telangana, India. Company’s Corporate Identification Number(CIN) is U27100TG2007PLC054564 and registration number is 054564. Currently company belongs to the Industry of Steel - Tubes/Pipes. Company’s Total Operating Revenue is Rs. 430.57 Cr. and Equity Capital is Rs. 16.98 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Steel - Tubes/Pipes	3-4-174/12/2, 1st Floor, Samarpan Lane, Besides Spencer�s, Hyderabad Telangana 500048	cs@hariompipes.com http://www.hariompipes.com

Management
Name	Position Held
Mr. Pramod Kumar Kapoor	Chairman & Ind.Director
Mr. Rupesh Kumar Gupta	Managing Director
Mr. Sailesh Gupta	Whole Time Director
Mrs. Sunita Gupta	Non Executive Director
Mr. Soumen Bose	Non Executive Director
Mr. Rajender Reddy Gankidi	Independent Director
Mrs. Sneha Sankla	Independent Director

FAQ

What is the latest intrinsic value of Hariom Pipe Industries Ltd?

The latest intrinsic value of Hariom Pipe Industries Ltd as on 18 December 2024 is ₹704.85, which is 24.75% higher than the current market price of ₹565.00. The stock has a market capitalization of 1,753 Cr. and recorded a high/low of ₹889/440 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹519 Cr and total liabilities of ₹1,025 Cr.

What is the Market Cap of Hariom Pipe Industries Ltd?

The Market Cap of Hariom Pipe Industries Ltd is 1,753 Cr..

What is the current Stock Price of Hariom Pipe Industries Ltd as on 18 December 2024?

The current stock price of Hariom Pipe Industries Ltd as on 18 December 2024 is 565.

What is the High / Low of Hariom Pipe Industries Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Hariom Pipe Industries Ltd stocks is 889/440.

What is the Stock P/E of Hariom Pipe Industries Ltd?

The Stock P/E of Hariom Pipe Industries Ltd is 29.3.

What is the Book Value of Hariom Pipe Industries Ltd?

The Book Value of Hariom Pipe Industries Ltd is 178.

What is the Dividend Yield of Hariom Pipe Industries Ltd?

The Dividend Yield of Hariom Pipe Industries Ltd is 0.11 %.

What is the ROCE of Hariom Pipe Industries Ltd?

The ROCE of Hariom Pipe Industries Ltd is 14.6 %.

What is the ROE of Hariom Pipe Industries Ltd?

The ROE of Hariom Pipe Industries Ltd is 13.5 %.

What is the Face Value of Hariom Pipe Industries Ltd?

The Face Value of Hariom Pipe Industries Ltd is 10.0.