Hariom Pipe Industries Limited

Basic Materials — Steel · NSE

₹332.00+₹1.35 (+0.41%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Hariom Pipe Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Hariom Pipe Industries Limited manufactures and sells iron and steel products in India.

IndustrySteel

SectorBasic Materials

Employees792

Annual revenue₹1,667 Cr

How does it make money?

Turns over ₹1,667 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 792 employees supports ₹2.10 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.10 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 18.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE10.8%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +159% while net margin moved -37% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+159%

Margin effect-37%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

• ROE of 11.7% is moderate

Quality vs. Valuation

Company Quality

63/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

79/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

15.0x

3Y Median

24.2x

40 monthly readings · mean 25.1x · range 13.6x–44.7x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 38% below its 3y median of 24.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 18% below the peer median of 18.2x.

vs. its own history

Cheap

24.2x median over 40 months · -38%

vs. sector peers

Fair

18.2x median of 4 peers · -18%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.5x

PEG

0.84

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on capital is rising
ROCE has improved from 14.3% to 18.7%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Debt is increasingFinancial
Total debt is up 36% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.7% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 38% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 28% a year✓ 37.3% CAGR
Latest reported year was -6.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 13.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Interest cover stays above 3x✗ 3.0x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹32 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 1.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹1,028 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.0x

Cheap

Cheap against the generic band

P/B Ratio

1.59x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹22.18

Profitable

Profitable on a per-share basis

ROE

11.7%

Moderate

Moderate capital efficiency

ROCE

18.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.62x

Moderate

Moderate leverage

Revenue Growth (YoY)

-6.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-29.7%

Falling

Profits are shrinking

Dividend Yield

0.23%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹32 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

8.0%

Average

Average margins

Net Margin

4.2%

Average

Average bottom-line conversion

Current Ratio

1.68

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.68

Defensive

Steadier than the market

52W Range Position

30%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

341.4 / 352.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

43.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹644 Cr	₹1,153 Cr	₹1,357 Cr	₹1,667 Cr	+37.3%
EBITDA	₹82 Cr	₹143 Cr	₹176 Cr	₹221 Cr	+39.0%
EBITDA Margin	12.8%	12.4%	13.0%	13.2%	—
PAT (Net Profit)	₹46 Cr	₹57 Cr	₹62 Cr	₹76 Cr	+17.9%
EPS	₹18.29	₹18.34	₹19.93	₹24.45	+10.2%
ROE	12.3%	12.2%	10.8%	11.7%	—
ROCE	14.3%	18.5%	18.6%	18.7%	—
Total Debt	₹296 Cr	₹371 Cr	₹400 Cr	₹403 Cr	+10.8%
Free Cash Flow	-₹323 Cr	-₹226 Cr	-₹27 Cr	₹32 Cr	—

🟢 Revenue has grown at 37.3% a year over 3 years.

🟢 EBITDA has grown at 39.0% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 13.2% over 3 years.

🟢 PAT (Net Profit) has grown at 17.9% a year over 3 years.

🟢 EPS has grown at 10.2% a year over 3 years.

🟡 ROE has held roughly flat at 11.7% over 3 years.

🟢 ROCE has risen from 14.3% to 18.7% over 3 years (+4.4 pts).

🔴 Total Debt has grown at 10.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹323 Cr to ₹32 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,220 Cr

Total Liabilities

₹571 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹192 Cr

Capex

-₹160 Cr

Shareholding (proxy)

Institutional Holding

9.7%

Insider Holding

58.7%

Corporate Actions

Dividend Rate

₹0.75

Ex-Dividend Date

23 Sept 2026

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

3 mixed3 general

If EPS Growth Is Important To You, Hariom Pipe Industries (NSE:HARIOMPIPE) Presents An Opportunity

Simply Wall Street, 31 May

Hariom Pipe subsidiary commissions 10 MW solar plants in Maharashtra

scanx.trade, 14 OctCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Hariom Pipe Connects with EPCs, Dealers & End-Use Industries at Tube & Pipe Fair Hyderabad

Tube & Pipe India, 12 Oct

Hariom Pipe Industries Ltd. Peer Comparison – Compare with Others

Value Research, 29 Aug

Why Is Hariom Pipe Industries Share Price Falling Key Reasons 2026

Univest, 06 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Ajay Upadhyaya’s Recent Entry In Small-Cap Low-PE Stock Adds Over Rs 1.07 Crore To Wealth; Shares Hit 20% Upper Circuit After 75% Surge In Q4FY26 PAT

Dalal Street Investment Journal, 25 MayPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Revenue growth is negative (-6.9%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation

MiddlingGrowth · Risk

WeakProfitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

1 of 5 tripwires tripped — Interest cover stays above 3x · see Key things to watch ↑