Hariom Pipe Industries Ltd. (HARIOMPIPE) AI Stock Analysis

• Market Cap: ₹12.79B
• Dividend Yield: 0.17%
• Average Volume (3M): 32.68K
• Price to Earnings (P/E): 20.5
• Beta (1Y): 1.11
• Revenue Growth: 17.98%
• EPS Growth: -0.62%
• Country: IN
• Employees: 458
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 3.36
• Shares Outstanding: 30,967,289
• 10 Day Avg. Volume: 12,582
• 30 Day Avg. Volume: 32,677
• PEG Ratio: -38.28
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.77
• P/FCF Ratio: -38.41
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹476.00 ▲(20.41% Upside)

Hariom Pipe Industries has a solid financial performance with strong revenue and equity growth, but faces challenges with high leverage and negative free cash flow. The technical analysis indicates a bearish trend, and the valuation is fair but not particularly attractive due to a low dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong revenue expansion

A near threefold revenue rise over three years signals durable scale gains in steel tubular markets. Larger revenue base supports better supplier bargaining, spreads fixed costs, and strengthens market position in construction/infrastructure, enabling longer‑term investment and product expansion.

Improved operating cash generation

Conversion of earnings into positive operating cash flow indicates the core manufacturing business is generating cash. Sustained OCF improvement reduces reliance on external funding for working capital, improves liquidity resilience, and underpins capacity to invest or deleverage over the medium term.

Strengthened equity base

A materially larger equity base improves the company’s capital buffer against cyclical downturns typical in steel. Stronger equity supports financing flexibility for growth capex, reduces bankruptcy risk, and enhances creditworthiness for multi‑year infrastructure and B2B contracts.

Negative Factors

Substantial absolute debt levels

High absolute debt creates persistent interest and refinancing obligations that can constrain cash flow allocation. In a cyclical steel sector, elevated debt reduces operational flexibility, heightens vulnerability to demand shocks, and can limit strategic moves during downturns.

Negative free cash flow

Ongoing negative FCF means the firm must rely on external financing or equity to fund growth. Unless capex yields sustained returns, persistent negative FCF can pressure liquidity, raise leverage, and constrain ability to repay debt or return capital to shareholders over the medium term.

Moderate profitability margins

Relatively low net margins and only moderate operating margins leave limited cushion against raw material volatility and pricing pressure in steel. Sustained thin margins reduce internal funding for capex, make returns sensitive to cyclical downturns, and constrain long‑term margin expansion potential.

Hariom Pipe Industries Ltd. Business Overview & Revenue Model

Company Description

Hariom Pipe Industries Limited manufactures and sells iron and steel products. It primarily offers mild steel billets, pipes, and tubes; hot rolled coils; and scaffolding systems for various industrial applications. The company was incorporated in 2007 and is based in Hyderabad, India.

How the Company Makes Money

Hariom Pipe Industries Ltd. generates revenue through the sale of its diverse range of pipes and fittings. The company's primary revenue streams include the manufacturing and distribution of PVC and HDPE pipes, which are essential for various applications in construction, irrigation, and industrial projects. Additionally, HARIOMPIPE benefits from strategic partnerships with distributors and retailers, enhancing its market reach and sales performance. The company may also engage in export activities, further diversifying its income sources. Market demand for infrastructure development and agricultural products plays a crucial role in driving sales and overall revenue growth.

Hariom Pipe Industries Ltd. Financial Statement Overview

Summary

Hariom Pipe Industries shows a strong growth trajectory with substantial revenue and equity growth, improving profitability margins, and better cash flow from operations. However, the company should address high leverage and negative free cash flow to ensure sustainable long-term growth and stability.

Income Statement

Hariom Pipe Industries has demonstrated robust revenue growth over the years, with a notable increase from 4.31 billion in 2022 to 13.57 billion in 2025, reflecting a strong expansion trajectory. The gross profit margin has been stable, hovering around 18% over the recent year, indicating efficient cost management. The net profit margin improved to approximately 4.55% in 2025, suggesting enhanced profitability. However, there is room for improvement in EBIT and EBITDA margins, which are relatively moderate at 14.32% and 12.92% respectively.

Balance Sheet

The company exhibits a solid equity base, with stockholders' equity rising from 1.01 billion in 2022 to 5.73 billion in 2025. The debt-to-equity ratio has improved, reflecting a more balanced capital structure, though total debt remains substantial at 4.01 billion in 2025. The equity ratio has strengthened, indicating a better ability to cover liabilities with equity. However, the company should be cautious of potential risks from high leverage.

Cash Flow

Operating cash flow has improved significantly to 786 million in 2025 from negative values in previous years, indicating better cash generation from operations. However, free cash flow remains negative, primarily due to high capital expenditures, which may be indicative of growth investments. The operating cash flow to net income ratio is strong, suggesting good cash conversion, but the company should focus on turning free cash flow positive.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.75B	13.57B	11.53B	6.44B	4.31B	2.54B
Gross Profit	2.70B	2.45B	1.96B	1.81B	1.40B	812.80M
EBITDA	1.90B	1.75B	1.44B	818.86M	561.19M	349.67M
Net Income	678.23M	617.26M	568.00M	462.08M	319.57M	151.32M
Balance Sheet
Total Assets	0.00	11.97B	8.80B	7.09B	2.16B	1.74B
Cash, Cash Equivalents and Short-Term Investments	507.86M	507.86M	317.90M	1.05B	4.88M	8.80M
Total Debt	0.00	4.01B	3.72B	2.97B	862.57M	801.75M
Total Liabilities	-5.73B	6.24B	4.16B	3.34B	1.15B	1.03B
Stockholders Equity	5.73B	5.73B	4.64B	3.75B	1.01B	707.89M
Cash Flow
Free Cash Flow	0.00	-272.18M	-2.26B	-3.23B	-7.69M	-134.38M
Operating Cash Flow	0.00	786.33M	49.55M	-1.01B	37.24M	104.26M
Investing Cash Flow	0.00	-857.16M	-1.82B	-2.22B	-41.59M	-234.69M
Financing Cash Flow	0.00	313.17M	743.72M	4.26B	-2.10M	120.92M

Hariom Pipe Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 395.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HARIOMPIPE, the sentiment is Positive. The current price of 395.3 is below the 20-day moving average (MA) of 414.75, above the 50-day MA of 380.63, and below the 200-day MA of 424.87, indicating a neutral trend. The MACD of 8.27 indicates Positive momentum. The RSI at 54.59 is Neutral, neither overbought nor oversold. The STOCH value of 49.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:HARIOMPIPE.

Hariom Pipe Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KSL	76 Outperform	₹31.10B	11.92	―	1.36%	-0.46%	4.85%
GOODLUCK	76 Outperform	₹37.04B	22.26	―	0.38%	9.57%	3.24%
VENUSPIPES	70 Outperform	₹21.17B	22.62	―	0.08%	17.45%	-7.82%
HARIOMPIPE	66 Neutral	₹12.79B	20.47	―	0.17%	17.98%	-0.62%
HITECH	63 Neutral	₹15.14B	18.75	―	0.03%	9.05%	-4.65%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
RAMASTEEL	55 Neutral	₹12.79B	63.78	―	―	14.51%	-30.02%