Hariom Pipe Stocks: After Hariom Pipe Industries made a strong opening on Dalal Street, there was demand for the shares, closing the stock in the 5 per cent upper circuit on April 13. The steel and iron pipe maker is listed on the NSE at Rs 220, which is a premium of Rs 44. Its issue price is more than Rs 153. On BSE, the counter is listed at a premium of 40 per cent.
Since the stock trades in the “trade-for-trade” segment, there is a 5 per cent circuit on either side and intraday trading is not allowed in these stocks, only delivery of shares is allowed.
Experts expecting listing gains of 10-16 per cent advise investors in IPOs to book partial profits for listing gains. Medium to long term investors should stay in the stock for better returns.
Arafat Sayyed, senior research analyst at Reliance Securities, said the company has strong financial backing and is looking to expand its capacity from net proceeds from stake sale.
“The stock is undervalued at current levels and we are above Rs 300 in near term,” he added. “Investors can hold it for long but fresh entry should be done only below Rs 200.”
Santosh Meena, Head of Research, Swastika Investmart said that the good listing can be attributed to good market sentiment and good prospects for the steel pipe industry. “The company has an integrated nature of operations, a cost-effective process and an experienced management team. However, the cyclical nature of the industry and the commoditized nature of the products make it suitable only for aggressive investors over the long term. Those who have made listing gains They can place a stop loss at Rs 195.
Aastha Jain, Senior Research Analyst, Hem Securities, said investors can book partial profits and hold the remaining positions for further upside. Jain is looking counter to target Rs 275-280 in near future. “We suggest investors should buy fresh positions in the range of Rs 180-200,” he said.
The issue was subscribed a little less than 8 times overall, due to heavy bidding by retail investors, whose quota was subscribed 12.15 times. The HNI portion was subscribed 8.9 times, while the QIB allocation received less than two times the bids.
Hariom is an integrated manufacturer of Mild Steel (MS) Pipes, Scaffolding, HR Strips, MS Billets and Sponge Iron. It uses iron ore to produce sponge iron, which is processed at various stages to manufacture the final products—MS pipes and scaffolding—making the company’s manufacturing process cost-effective.
Hariom Pipe Industries had reported healthy financial performance so far, as profit grew 91.5 per cent to Rs 15.13 crore in FY2011 and revenue grew 58 per cent to Rs 254 crore. In the six months ended September 2021, the company made a profit of Rs 12.87 crore on revenue of Rs 200.87 crore.
List of Hariom Pipes shares at 44% premium to D-Street. Should investors buy, sell or hold post listing?
Hariom Pipe Stocks: After Hariom Pipe Industries made a strong opening on Dalal Street, there was demand for the shares, closing the stock in the 5 per cent upper circuit on April 13. The steel and iron pipe maker is listed on the NSE at Rs 220, which is a premium of Rs 44. Its issue price is more than Rs 153. On BSE, the counter is listed at a premium of 40 per cent.
Since the stock trades in the “trade-for-trade” segment, there is a 5 per cent circuit on either side and intraday trading is not allowed in these stocks, only delivery of shares is allowed.
Experts expecting listing gains of 10-16 per cent advise investors in IPOs to book partial profits for listing gains. Medium to long term investors should stay in the stock for better returns.
Arafat Sayyed, senior research analyst at Reliance Securities, said the company has strong financial backing and is looking to expand its capacity from net proceeds from stake sale.
“The stock is undervalued at current levels and we are above Rs 300 in near term,” he added. “Investors can hold it for long but fresh entry should be done only below Rs 200.”
Santosh Meena, Head of Research, Swastika Investmart said that the good listing can be attributed to good market sentiment and good prospects for the steel pipe industry. “The company has an integrated nature of operations, a cost-effective process and an experienced management team. However, the cyclical nature of the industry and the commoditized nature of the products make it suitable only for aggressive investors over the long term. Those who have made listing gains They can place a stop loss at Rs 195.
Aastha Jain, Senior Research Analyst, Hem Securities, said investors can book partial profits and hold the remaining positions for further upside. Jain is looking counter to target Rs 275-280 in near future. “We suggest investors should buy fresh positions in the range of Rs 180-200,” he said.
The issue was subscribed a little less than 8 times overall, due to heavy bidding by retail investors, whose quota was subscribed 12.15 times. The HNI portion was subscribed 8.9 times, while the QIB allocation received less than two times the bids.
Hariom is an integrated manufacturer of Mild Steel (MS) Pipes, Scaffolding, HR Strips, MS Billets and Sponge Iron. It uses iron ore to produce sponge iron, which is processed at various stages to manufacture the final products—MS pipes and scaffolding—making the company’s manufacturing process cost-effective.
Hariom Pipe Industries had reported healthy financial performance so far, as profit grew 91.5 per cent to Rs 15.13 crore in FY2011 and revenue grew 58 per cent to Rs 254 crore. In the six months ended September 2021, the company made a profit of Rs 12.87 crore on revenue of Rs 200.87 crore.
read all Breaking News , today’s fresh news And IPL 2022 Live Updates Here.