Sumeet Nagar Portfolio: Malabar India Fund Hikes Stake in Multibagger Steel Stock

As the earnings season gets underway, companies have also started to report their shareholding pattern for the June 2023 quarter.

Among these companies is a multibagger steel stock. The latest shareholding filing of this company revealed that ace investor Sumeet Nagar's fund - Malabar India Fund Limited - has increased stake in the company during the quarter under review.

This stock is now a big part of Sumeet Nagar's portfolio.

Who is Sumeet Nagar?

Sumeet Nagar is the co-founder of Malabar Ventures LLC. Malabar is a foreign portfolio investor (FPI) with a particular emphasis on India's small and mid-cap stocks.

His amazing track record in the smallcap and midcap space is no fluke.

He has a solid decision-making process on which stocks to buy, how much to buy, and, equally importantly, when to sell.

The Latest Addition

The company in question is from the smallcap space with a marketcap of Rs 17.6 billion (bn) - Hariom Pipe Industries.

The latest shareholding pattern of Hariom Pipe Industries shows that Malabar India fund bought stake in the quarter under review. The fund now holds 1.5% stake in the company as of June 2023, worth Rs 258 million (m).

While we can't know for sure why the star investor bought into the counter, there are some reasons that we can guess...

First reason being the company's capacity addition and capex benefits coming into play. The company undertook production of its electric melting furnace in November last year with a capacity of 15 tonnes. This increased its production of MS Billets from 95,832 metric tonnes per annum (MTPA) to 104,232 MTPA.

Another reason could be its established presence. Hariom Pipe has evolved as a strong integrated steel manufacturer over the years with a stronghold in the south Indian market.

When it comes to premium manufacturers of iron and steel products, Hariom Pipe is at the top of the list.

Going forward, the company is focusing on expanding its geographical presence through increasing product diversity. It's already targeting markets with high growth potential.

How Hariom Pipe Industries share price has performed recently

In the past one year, Hariom Pipe Industries share price has rallied over 200%.

In 2023 so far, its share price is up 80%.

Hariom Pipe has a 52-week high of Rs 695 touched on 16 June and a 52-week low of Rs 199 touched on 12 July 2022.

Take a look at the table below to compare Hariom Pipe with its peers -

Comparative analysis

Company	Hariom Pipe	Mahamaya Steels	Manaksia Steels	Shah Alloys	Mangalam Worldwide
ROE (%)	37.2	2.7	12.3	84.4	18.2
ROCE (%)	29.9	5.6	15.2	1,690.2	12.1
Latest EPS (Rs)	16.7	2.5	1.9	3.4	6.4
TTM PE (x)	38.0	27.1	24.1	13.3	16.6
TTM Price to book (x)	4.7	0.9	1.1	1.4	2.4
Dividend yield (%)	0.0	0.2	0.0	0.0	0.8
Industry PE	17.3
Industry PB	1.8

Data Source: Ace Equity

About Hariom Pipe

Headquartered in Hyderabad, Telangana, Hariom Pipe Industries is an integrated steel manufacturer with a stronghold in the South Indian market.

It has a diverse product portfolio consisting of Mild Steel (MS) Billets, Pipes and Tubes, Hot Rolled (HR) Coils, and Scaffolding Systems, and its top-quality products cater to a variety of industrial applications across multiple sectors.

To know more, check out Hariom Pipe's financial factsheet and its latest quarterly results.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...