Hariom Pipe Industries Surges 8% After Strong Q4 FY25 Sales Growth
Stock Rises as Company Reports Over 20% YoY Sales Volume Growth
Hariom Pipe Industries : Shares of Hariom Pipe Industries Ltd soared by over 8% on Thursday following the announcement of robust sales growth in Q4 FY25. The small-cap steel manufacturer, known for its high-quality products catering to infrastructure and industrial applications, reported a 23% year-on-year (YoY) increase in total sales volume, driven by the strong demand for its Value-Added Products (VAP).
Stock Performance & Market Reaction
The stock reached an intraday high of ₹389.85, marking an 8.5% gain, before settling at ₹385 per share, reflecting a 7.15% rise from its previous close of ₹359.3. The rally in Hariom Pipe Industries’ stock came on the back of an impressive 46% YoY jump in VAP sales for the quarter, indicating the company’s strong positioning in the steel sector.
Strong Q4 & FY25 Sales Growth
According to a press release dated April 2, 2025, the company reported the following key performance highlights:
Quarterly Performance (Q4 FY25 vs. Q4 FY24)
- Sale of Value-Added Products (VAP) surged 46% YoY, from 49,260 MT to 72,149 MT.
- Total sales volume increased 23% YoY, reaching 74,213 MT.
- VAP Contribution to total sales rose to 97%, up from 81% in Q4 FY24.
Annual Performance (FY25 vs. FY24)
- Sale of Value-Added Products (VAP) grew 35% YoY, from 1,74,666 MT to 2,35,812 MT.
- Total sales volume saw a 23% YoY rise, reaching 2,45,467 MT.
- VAP Contribution stood at 96%, compared to 88% in FY24.
Management’s Perspective
Mr. Rupesh Kumar Gupta, Managing Director of Hariom Pipe Industries, highlighted the company’s strategic shift towards high-value, specialized products. He emphasized that focusing on Value-Added Products has enabled the company to achieve higher margins and a competitive edge in the market.
“Our commitment to premium products strengthens our market positioning while enhancing customer value. This strategy will continue to drive sustainable growth and profitability in the coming years.”
Financial Performance & Ratios
Hariom Pipe Industries also posted solid financial results, showing positive momentum in revenue and profit growth.
| Financial Metric | Q3 FY25 | Q3 FY24 | YoY Growth |
|---|---|---|---|
| Revenue from Operations | ₹300 Cr. | ₹280 Cr. | +7.1% |
| Net Profit | ₹11 Cr. | ₹10 Cr. | +14.5% |
The company’s focus on value-added products and strong market demand contributed to these impressive numbers.
Future Growth Plans
Hariom Pipe Industries aims to expand its market presence by penetrating deeper into Tier 2 and Tier 3 cities and rural markets. The company also plans to:
- Enhance capacity for its MS Tubes & GP Pipes segment.
- Boost sponge iron production to meet rising demand.
- Strengthen its dealer network, with a particular focus on Western and Northern India, while continuing expansion in Southern India.
- Achieve a 30% YoY volume growth in FY26, driven by higher capacity utilization and an expanded distribution network.
About Hariom Pipe Industries Ltd
Hariom Pipe Industries is a leading manufacturer of iron and steel products in India. With an installed capacity of 701,232 MTPA, the company offers a diverse product range, including:
- Mild Steel Billets
- HR and CR Pipes
- GP Pipes
- Scaffolding Systems
With a stronghold in South and West India, the company continues to expand its reach across the country.
Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | ₹1,192 Cr. |
| Current Price | ₹385 |
| 52-Week High / Low | ₹889 / ₹320 |
| Stock P/E | 19.5 |
| Book Value | ₹178 |
| Dividend Yield | 0.16% |
| Return on Capital Employed (ROCE) | 14.6% |
| Return on Equity (ROE) | 13.5% |
| Debt-to-Equity Ratio | 0.61 |
| Promoter Holding | 57.3% |
| Intrinsic Value | ₹880 |
| RSI (Relative Strength Index) | 55.4 |
| Earnings Per Share (EPS) | ₹20.2 |
| Price-to-Book Value | 2.17 |
| Industry P/E | 24.1 |
| Debt | ₹336 Cr. |
| Free Cash Flow (5Yrs) | ₹-485 Cr. |
Frequently Asked Questions (FAQs)
1. Why did Hariom Pipe Industries’ stock rise today?
Hariom Pipe Industries’ stock surged over 8% after the company reported a 23% YoY growth in sales volume for Q4 FY25. The growth was driven by the rising demand for its Value-Added Products (VAP).
2. What are Value-Added Products (VAP)?
Value-Added Products refer to high-margin, premium steel products that enhance profitability. Hariom Pipe’s VAP sales increased by 46% YoY in Q4 FY25 and now contribute 97% of total sales volume.
3. How did Hariom Pipe perform financially in Q3 FY25?
The company reported a 7.1% YoY increase in revenue to ₹300 Cr. and a 14.5% YoY rise in net profit to ₹11 Cr. in Q3 FY25.
4. What is the future growth outlook for the company?
Hariom Pipe aims to increase market penetration in Tier 2 and Tier 3 cities while expanding its dealer network. It targets 30% YoY volume growth in FY26, driven by higher capacity utilization and deeper market reach.
5. Is Hariom Pipe Industries a good investment?
With strong financials, a growing market presence, and a focus on high-margin products, Hariom Pipe Industries shows long-term growth potential. However, investors should consider factors like market conditions and financial ratios before making investment decisions.
Conclusion
Hariom Pipe Industries’ impressive sales growth and strategic focus on high-margin products have positioned the company for continued success. The stock’s 8% surge reflects strong investor confidence in its business model and future expansion plans. With ambitious growth targets and a diverse product portfolio, Hariom Pipe remains a key player in India’s booming steel sector.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.