Hariom Pipe Industries: PAT growth of 38% & Revenue growth of 110% in 9M-24 at a PE of 28
Hariom Pipe Industries: PAT growth of 38% & Revenue growth of 110% in 9M-24 at a PE of 28
Even after a weak Q3-24, HARIOMPIPE is on track to deliver a strong FY24. HARIOMPIPE is looking to double in FY24 over FY23. HARIOMPIPE is guiding for 57% revenue CAGR for FY23-26
1. Integrated manufacturer of steel pipes and tubes
hariompipes.com | NSE : HARIOMPIPE
2. FY20-23: PAT CAGR of 53% & Revenue CAGR of 41%
3. Strong FY23: PAT up 45% & Revenue up 55% YoY
4. Strong H1-24: PAT up 61% & Revenue up 102% YoY
5. Weak Q3-24: PAT down 3% & Revenue up 128% YoY
PAT down 34% and Revenue down 7% QoQ
6. Strong 9M-24: PAT up 38% & Revenue up 110% YoY
7. Business metrics: Strong return ratios
EPS, RoCE and RoE in FY23 impacted by higher equity base from preferential allotment done in March 2023
8. Outlook: Revenue CAGR of 57% for FY23-26
i. Revenue CAGR of 57% for FY23-26
Revenue growing from Rs 644.46 cr in FY23 to Rs 2,500 cr in FY26 implies a revenue CAGR of 57%
To reach Rs 2,500 crore in Revenue by FY26 without compromising on our profitability
On track to achieve our FY26 goal
9. PAT growth of 38% & Revenue growth of 110% in 9M-24 at a PE of 28
10. So Wait and Watch
If I hold the stock then one may continue holding on to HARIOMPIPE
Based on 9M-24 performance, HARIOMPIPE looks on track to deliver the strongest yearly performance in terms of revenue and PAT in its history
HARIOMPIPE has delivered a weak Q3-24 and should watch out for weak quarters going forward. Despite a weak Q3-24, FY24 is expected to be strong.
FY24 target is around 1200 Cr Revenue & around 12-13% EBITDA Margin
HARIOMPIPE has a strong outlook till FY26 which provides a reason to continue till FY26
11. Or, join the ride
If I am looking to enter HARIOMPIPE then
HARIOMPIPE has delivered PAT growth of 38% & Revenue growth of 110% in 9M-24 at a PE of 28 which makes valuations quite reasonable in the short-term.
HARIOMPIPE is guiding for 57% revenue CAGR for FY23-26 at a PE of 28 which makes valuations quite attractive from a long term perspective.
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