This small-cap steel stock engaged in manufacturing mild steel (MS) pipes, scaffolding, HR strips, MS billets, and sponge iron, catering to diverse sectors like infrastructure, agriculture, and construction, jumped 5 percent after foraying into the renewable energy sector and securing an order for a 60 MW solar power project.
Stock Price Movement:
With a market capitalization of Rs. 1,070.38 crores, the share of Hariom Pipe Industries Limited has reached an intraday high of Rs. 357.85 per equity share, rising nearly around 5.20 percent from its previous day’s close price of Rs. 340.15. Since then, the stock has retreated and is currently trading at Rs. 345.65 per equity share.
What Happened:
Hariom Pipe Industries Limited (HPIL) has entered the renewable energy sector and received a Letter of Award for a 60 MW (AC) solar power project under the Mukhyamantri Saur Krushi Vahini Yojana 2.0, part of the PM Kusum Scheme. The Maharashtra State Electricity Distribution Company Limited (MSEDCL) will purchase power from this project for 25 years at a fixed tariff of Rs. 2.96/kWh.
Additionally, the company will also receive a subsidy of Rs. 1.05 crore per MW and an additional incentive of Rs. 0.25/kWh for the first three years upon timely completion. The project is expected to be completed in 18 months, marking HPIL’s significant step into the clean energy sector.
Production Facilities:
The company operates manufacturing units in Ananthapur, Mahabubnagar, and Perundurai, with a total installed capacity of 701,232 MTPA. This includes 36,000 MTPA of sponge iron, 104,232 MTPA of M.S. billets, 1.24 lakh MTPA of HR strips, 1.32 lakh MTPA of MS tubes, 5,000 MTPA of scaffolding, and 3 lakh MTPA of galvanized pipes and coils.
Dealer Network:
The company has a strong dealer network with over 800 dealers across multiple states. Telangana has the highest coverage with 216 dealers, followed by Karnataka (201), Andhra Pradesh (164), Tamil Nadu (120), and Kerala (79). Maharashtra has 11 dealers, while 15 dealers operate across eight other states, ensuring wide market reach.
Recent quarter results and ratio:
Hariom Pipe Industries Limited’s revenue has increased from Rs. 280 crore in Q3 FY24 to Rs. 300 crore in Q3 FY25, which has grown by 7.14 percent. The net profit has also grown by 10 percent from Rs. 10 crore in Q3 FY24 to Rs. 11 crore in Q3 FY25.
Hariom Pipe Industries Limited’s revenue and net profit have grown at a CAGR of 53.80 percent and 48.10 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 14.6 percent and 13.5 percent, respectively. Hariom Pipe Industries Limited has an earnings per share (EPS) of Rs. 20.2, and its debt-to-equity ratio is 0.61x.
Written By – Nikhil Naik
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