Hariom Pipes Ltd: A Capex Play!

My Outlook on Interview & Fundraise:

1. 700 Cr is huge amount almost 30% of Market Cap, 55% of TTM Sales (Management told no fund raise required & sudden fund raise news)
2. Dilution will be huge, not at all good for Investors (EPS won’t rise in FY25 as well)
3. No reason given how will fund utilise
4. This Q will be soft with EBITDA falling (can see consolidation or price falling near future)

Some Good parts:

1. Growth outlook is intact
2. Guidance is intact for FY26 + Margin will increase as suggested 8000 EBITDA per ton guidance
3. Capital might be utilise in lowering debt & WC as suggested Capex is completed & utilisation is below 40% (so growth might accelerate + PAT would increase)

Let’s see what’s management says in Q2 Results outlook

No Reco (Invested; will see what to do in Q2)