scorecardresearchThis newly listed stock zooms 6.7% to hit an all-time high; Up 116% from

This newly listed stock zooms 6.7% to hit an all-time high; Up 116% from the issue price

Updated: 28 Nov 2022, 01:38 PM IST
TL;DR.

Hariom Pipes Industries made a strong entry on the exchanges, debuting at a 39.86 percent premium at 214 on the NSE as against the issue price of 153. For the September-ending quarter, the company posted a 29.16 percent rise in its standalone net profit of 9.3 crore as against 7.2 crore.

Hariom Pipes Industries is a small-cap stock with a market capitalization of  <span class='webrupee'>₹</span>843 crore. The company is a premium manufacturer of iron and steel products.

Hariom Pipes Industries is a small-cap stock with a market capitalization of 843 crore. The company is a premium manufacturer of iron and steel products.

Shares of Hariom Pipes Industries extended their gains on Monday after rallying 15.91 percent in the past three trading days. The stock made a strong start to the trade at 323.50, compared to the previous closing price of 313.55, and continued to rise to hit an all-time high of 329. At 1:15 p.m., the stock was trading at around 330.70/share, up 5.49% on the BSE.

The stock began to rise after the company announced that it had completed the installation of its 15-ton electric melting furnace and that commercial production would begin on Friday, November 25, 2022. According to the company, this will result in an increase in MS Billets production from the current level of 95,832 MTPA to 1,04,232 MTPA.

The stock has been witnessing remarkable traction since its listing. It was listed on the bourses on April 13, 2022. The company had mopped up 130.05 crore through its IPO. The public offering has received a healthy response from investors, as it was oversubscribed by nearly eight times.

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Stock price chart of Hariom Pipes Industries.

The stock made a strong entry on the exchanges, debuting at a 39.86 percent premium at 214 on the NSE as against the issue price of 153 and closed at 224.7, a 46.9 percent premium over the IPO price, on the first day. 

Since listing, the stock has been on a rise and has added as much as 116 percent to date from its issue price and 47.32 percent from its listing price.

For the September-ending quarter, the company posted a 29.16 percent rise in its standalone net profit of 9.3 crore as against a 7.2 crore in the same quarter of the previous fiscal. However, sequentially, the net profit was down marginally by 2.10 percent. In the first quarter of the current fiscal year, the company reported a standalone net profit of 9.3 crore.

Revenue from operations increased by 11.48 percent to 127.2 crore during the quarter, compared to 114.1 crore in the corresponding quarter of the previous fiscal. The company's expenses was 111 crore in Q2 from 99.7 crore in the similar quarter of the previous fiscal.

The operating profit came in at 16.1 crore for the September quarter, an increase of 12.58 percent when compared to 14.3 crore in the corresponding quarter of the last fiscal. EBITDA stands at 12.63 percent, down 07 basis points (bps) from the same quarter of last year.

Hariom Pipes Industries is a small-cap stock with a market capitalization of 843 crore. The company is a premium manufacturer of iron and steel products. HPI's product portfolio consists of Mild Steel (MS) Billets, Pipes and Tubes, Hot Rolled (HR) coils, and scaffolding systems. It recently started manufacturing GP/GI tubes in NB ranging from 20mm to 125mm with thicknesses varying between 1.2 to 3.0 mm, its website shows.

The promoters own 66.0 percent of the shares in the company, while foreign portfolio investors and domestic institutional investors each own 2.7 percent and 0.4 percent, respectively. Regular shareholders own 30.9 percent.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.

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IPO is the first public issue of the shares of a private company whereas FPO is the second public issue of the shares of an already listed public company.
First Published: 28 Nov 2022, 01:38 PM IST