Hariom Pipes Ltd: A Capex Play!

Its out - https://www.bseindia.com/xml-data/corpfiling/AttachLive/b399af4e-bdd0-4e03-bd20-2ccfa9c561be.pdf

Bad results it seems

So the sales are hit in the result.

Yupp… bad results as what price action was telling…

Sales miss led operating deleverage & PAT down significantly

Waiting for their press release if happens to know the exact reason

Yeah the price action deteriorated from middle of December. So the insiders knew this was coming.

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Hariom Pipe Results update:

-Revenue growth of 146% n QoQ fall
-EBITDA growth of 86% n QoQ fall
-PAT fallen QoQ n YoY led by dep & int exp
-Lack of disclosure in press release, what I believe industry weak demand + South flood had led the impact on operations
-Management released a simple press release compared to the last one which was detailed…
-Poor results were already backed in price as suggested by fall of 20% from ATH
-Behind the words guidance is given of 80-85% growth in FY24 over FY23
Q4E Sales: 360-375 cr
Q4E PAT: 15-17 cr
-Warrants money allotted can take care of Q4 WC requirements
-CF needs to be improved to have some impact on PAT & Free cash flows… if not happens then growth guidance (2500 cr revenue Target in FY26) will turn out to be a hindsight
-My honest review

No Reco
Disc: Invested

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Hariom Pipes

-Made a simple financial model as per guidance given by management
-I believe the next 2-3 Q more pain ahead on the Int & Dep side… after that Operating Lvg & Economies of scale will start to kick in… if CF improves

No Reco… posted just for educational purposes

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