Subscribe to Hariom Pipe Industries: Arihant Capital

Arihant Capital has come out with its report on Hariom Pipe Industries. The research firm has recommended to ''Subscribe'' the ipo in its research report as on March 30, 2022.

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March 31, 2022 / 09:44 AM IST

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Arihant Capital IPO report on Hariom Pipe Industries

Hariom Pipe Industries Ltd is part of the prestigious Hariom Group and headquartered Hyderabad, Telangana. The company is the premium manufacturer of Iron and Steel products. The company has prominent presence in south India and expanding to west India like Maharashtra. The Mild Steel Pipes are marketed and sold in the brand name of “Hariom Pipes”. The company manufacture MS Pipes and Scaffoldings of more than 150 different specifications and cater to customer requirements. The requirement for MS Pipes and Scaffoldings comes from sectors such as housing, Infrastructure, power, automotive, agriculture, solar power, cement, mining and engineering.

Valuation and Outlook

At the upper band of INR 153, the issue is valued at a EV/EBITDA of 10.2x based on FY21 EBITDA. We believe Hariom Pipe Industries Ltd has witnessed strong revenue growth from FY19-FY21, strategically located plants with integration, competitive pricing of the products, cost effectiveness, capacity expansion, experienced management and expanding network would lead the growth in going forward. We are recommending “Subscribe for Long Term” for this issue.