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Last Updated on: 05 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 543517 | NSE: HARIOMPIPE

Hariom Pipe Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 4, 2024, 10:01 pm

Market Cap 2,207 Cr.
Current Price 714
High / Low889/440
Stock P/E37.5
Book Value 154
Dividend Yield0.08 %
ROCE15.0 %
ROE14.3 %
Face Value 10.0
PEG Ratio2.09

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

View Share Price Target for Hariom Pipe Industries Ltd

Competitors of Hariom Pipe Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hariom Pipe Industries Ltd 2,207 Cr. 714889/44037.5 1540.08 %15.0 %14.3 % 10.0
Earthstahl & Alloys Ltd 53.8 Cr. 44.066.0/0.0028.5 30.20.00 %8.22 %5.21 % 10.0
Crimson Metal Engineering Company Ltd 4.57 Cr. 10.310.3/9.38 12.30.00 %7.27 %21.7 % 10.0
Welspun Corp Ltd 18,896 Cr. 720795/37615.8 2140.69 %20.2 %19.8 % 5.00
Surya Roshni Ltd 7,909 Cr. 727842/46721.8 1990.34 %20.8 %16.2 % 5.00
Industry Average11,857.64 Cr691.8794.90138.760.23%15.64%14.02%4.92

All Competitor Stocks of Hariom Pipe Industries Ltd

Quarterly Result

MonthMar 2021Jun 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales9487106124142127123252240302280331343
Expenses817692107126111104220212266247289299
Operating Profit13111317161618312836334245
OPM %13%13%13%14%11%13%15%12%12%12%12%13%13%
Other Income0020000011211
Interest2222222547111011
Depreciation2222222359101012
Profit before tax981213131214242020142423
Tax %27%25%20%25%25%25%28%27%22%27%29%29%23%
Net Profit7691010910171515101718
EPS in Rs3.993.355.495.763.743.643.986.255.595.353.555.815.66

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales871051341612544316441,1531,256
Expenses80901171372203745621,0151,101
Operating Profit7151723345682139155
OPM %8%14%13%15%13%13%13%12%12%
Other Income100013155
Interest333788103339
Depreciation23256893441
Profit before tax21012112143637780
Tax %33%36%31%30%29%25%26%27%
Net Profit26881532465759
EPS in Rs9.475.946.215.988.9218.8316.7319.6820.37
Dividend Payout %0%0%10%0%0%0%0%3%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2017-20182018-20192019-20202020-20212021-20222022-20232023-2024
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:69%
Compounded Profit Growth
10 Years:%
5 Years:47%
3 Years:56%
TTM:13%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:%
1 Year:17%
Return on Equity
10 Years:%
5 Years:19%
3 Years:19%
Last Year:14%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital211131317172829
Reserves10921355484319417
Borrowings292556688087297372
Other Liabilities713142323276662
Total Liabilities4758105140174216709880
Fixed Assets121243505954135366
CWIP010081010313
Investments00000000
Other Assets36466290107152471501
Total Assets4758105140174216709880

Reserves and Borrowings Chart

Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 4761104-1015
Cash from Investing Activity -0-4-32-12-23-4-222-182
Cash from Financing Activity -4-330912-042674
Net Cash Flow-0-04-2-1-1104-102

Free Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 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

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days2336295228234939
Inventory Days165196169251174150172124
Days Payable28312163914138
Cash Conversion Cycle161201177240193159207155
Working Capital Days121111116133123107166131
ROCE %30%22%18%21%28%18%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters66.03%66.03%66.03%60.92%60.91%60.91%60.91%58.28%57.16%
FIIs2.18%2.70%2.11%2.52%2.22%2.81%2.58%6.51%10.10%
DIIs0.43%0.37%0.37%0.18%0.00%0.00%0.00%0.00%0.16%
Public31.35%30.90%31.51%36.38%36.86%36.28%36.52%35.21%32.59%
No. of Shareholders38,50833,47132,85630,70335,94537,85039,80643,56344,373

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE / ROE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)20.3418.3018.8310.645.98
Diluted EPS (Rs.)18.3418.2918.839.805.93
Cash EPS (Rs.)31.4120.1523.6012.619.88
Book Value[Excl.RevalReserv]/Share (Rs.)160.79135.8559.5041.1831.18
Book Value[Incl.RevalReserv]/Share (Rs.)160.79135.8559.5041.1831.18
Dividend / Share (Rs.)0.000.000.000.000.60
Revenue From Operations / Share (Rs.)399.51233.10253.63149.84121.49
PBDIT / Share (Rs.)49.8129.9234.6620.6118.03
PBIT / Share (Rs.)38.0826.5129.8816.9314.13
PBT / Share (Rs.)26.8022.7525.0612.508.56
Net Profit / Share (Rs.)19.6816.7318.828.925.98
PBDIT Margin (%)12.4612.8313.6613.7514.83
PBIT Margin (%)9.5311.3711.7811.2911.62
PBT Margin (%)6.709.769.888.347.04
Net Profit Margin (%)4.927.177.425.954.91
Return on Networth / Equity (%)12.2312.3131.6321.6619.16
Return on Capital Employeed (%)18.5114.4636.4826.4524.01
Return On Assets (%)6.456.5114.808.705.66
Long Term Debt / Equity (X)0.250.330.340.480.58
Total Debt / Equity (X)0.790.780.860.941.37
Asset Turnover Ratio (%)1.451.392.211.620.00
Current Ratio (X)1.682.121.971.621.45
Quick Ratio (X)0.641.070.470.390.48
Inventory Turnover Ratio (X)3.723.033.192.580.00
Dividend Payout Ratio (NP) (%)0.000.000.000.0010.04
Dividend Payout Ratio (CP) (%)0.000.000.000.006.07
Earning Retention Ratio (%)0.000.000.000.0089.96
Cash Earning Retention Ratio (%)0.000.000.000.0093.93
Interest Coverage Ratio (X)4.427.967.194.653.24
Interest Coverage Ratio (Post Tax) (X)2.745.454.903.012.07
Enterprise Value (Cr.)1644.521500.000.000.000.00
EV / Net Operating Revenue (X)1.432.330.000.000.00
EV / EBITDA (X)11.4418.150.000.000.00
MarketCap / Net Operating Revenue (X)1.132.030.000.000.00
Retention Ratios (%)0.000.000.000.0089.95
Price / BV (X)2.813.490.000.000.00
Price / Net Operating Revenue (X)1.132.030.000.000.00
EarningsYield0.040.030.000.000.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Hariom Pipe Industries Ltd as of October 5, 2024 is: ₹826.49

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 October 5, 2024, Hariom Pipe Industries Ltd is Undervalued by 15.75% compared to the current share price ₹714.00

Intrinsic Value of Hariom Pipe Industries Ltd as of October 5, 2024 is: ₹974.91

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 October 5, 2024, Hariom Pipe Industries Ltd is Undervalued by 36.54% compared to the current share price ₹714.00

Last 5 Year EPS CAGR: 17.96%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 19.00%, which is a positive sign.
  2. The company has shown consistent growth in sales (202.00 cr) and profit (35.44 cr) over the years.
  1. The stock has a high average Working Capital Days of 126.00, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 186.63, which may not be favorable.
  3. The company has higher borrowings (126.75) compared to reserves (118.63), which may suggest financial risk.

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: 15.64%)
      • 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: 14.02%)
      • 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: 37.5 (Industry average Stock P/E: 94.9)
      • 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.
INDUSTRYADDRESSCONTACT
Steel - Tubes/Pipes3-4-174/12/2, 1st Floor, Samarpan Lane, Besides Spencer�s, Hyderabad Telangana 500048cs@hariompipes.com
http://www.hariompipes.com
Management
NamePosition Held
Mr. Pramod Kumar KapoorChairman & Ind.Director
Mr. Rupesh Kumar GuptaManaging Director
Mr. Sailesh GuptaWhole Time Director
Mrs. Sunita GuptaNon Executive Director
Mr. Soumen BoseNon Executive Director
Mr. Rajender Reddy GankidiIndependent Director
Mrs. Sneha SanklaIndependent Director

FAQ

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

The latest fair value of Hariom Pipe Industries Ltd is ₹826.49.

What is the Market Cap of Hariom Pipe Industries Ltd?

The Market Cap of Hariom Pipe Industries Ltd is 2,207 Cr..

What is the current Stock Price of Hariom Pipe Industries Ltd as on 04 October 2024?

The current stock price of Hariom Pipe Industries Ltd as on 04 October 2024 is ₹714.

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

In FY 2024, 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 37.5.

What is the Book Value of Hariom Pipe Industries Ltd?

The Book Value of Hariom Pipe Industries Ltd is 154.

What is the Dividend Yield of Hariom Pipe Industries Ltd?

The Dividend Yield of Hariom Pipe Industries Ltd is 0.08 %.

What is the ROCE of Hariom Pipe Industries Ltd?

The ROCE of Hariom Pipe Industries Ltd is 15.0 %.

What is the ROE of Hariom Pipe Industries Ltd?

The ROE of Hariom Pipe Industries Ltd is 14.3 %.

What is the Face Value of Hariom Pipe Industries Ltd?

The Face Value of Hariom Pipe Industries Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Hariom Pipe Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE