Hariom Pipe Industries IPO: How good is it?

In our previous part of Hariom Pipe Industries IPO story, we read about the key details of the IPO along with important information about the company. Here we will answer some questions about Hariom Pipe Industries and evaluate it on parameters like management, financials, valuations, etc. IPO questions The company/business 1) Are the company's earnings before tax more than Rs 50 crore in the last 12 months? No. The company's earnings before tax for FY21 were Rs 21 crore. 2) Will Hariom Pipe Industries be able to scale up its business? Yes. The company is looking to increase its manufacturing capacity using the proceeds from the IPO which will help expand its business. 3) Does the company have recognisable brands truly valued by its customers? No. The concept of brand recognition does not exist in this space and it also directly competes with several other major steel product manufacturers which makes it difficult for them to have solid recognition among their customers. 4) Does Hariom Pipe Industries have high repeat customer usage? Yes. The company has long-term relationships with several of its customers. 5) Does the company have a credible moat? No. Hariom Pipes does not offer anything unique that other players don't. 6) Is the company sufficiently robust to major regulatory or geopolitical risks? Yes. The company derives all of its revenue only from domestic sales and is also self-sufficient for raw materials and intermediates. 7) Is the business of the company immune from easy replication by new players? No. While there are high capital expenditure requirements for an entity outside of the steel industry to replicate the company's business, those