Hariom Pipe Industries is a company on the rise, with a promising future ahead. With a target price of ₹785 and a current market price of ₹518.85, the company is poised for exceptional growth driven by capacity ramp-ups, increased sales of galvanised products through established dealer networks, and favourable industry dynamics.
One key factor contributing to Hariom’s success is its backward-integrated model, which allows for seamless scalability as capacities increase. The company’s production of sub-2mm pipes using a tandem mill gives it a competitive edge in the market. Additionally, Hariom is making strategic moves to improve its cash conversion cycle, return ratios, debt-to-equity metrics, and margins, all of which bode well for its future financial performance.
Looking ahead, we forecast a 26% compound annual growth rate in sales volumes over the next few years, driven by capacity expansions that could be funded internally. In addition, Hariom is actively working to enhance its cash conversion cycle by negotiating better credit terms with suppliers. As the company aims to increase the revenue share of its engineering segment, we anticipate further improvements in working capital efficiency.
Overall, Hariom Pipe Industries is well-positioned for robust growth and a potential re-rating. Investors looking for a promising opportunity in the industrial sector may find Hariom’s stock worth considering for their portfolio. Stay tuned for more updates on this exciting company as it continues on its growth trajectory.
