Synopsis: Indian Hume Pipe Company is in focus after signing an Agreement for Sale with Ashoka Builders for Rs. 173.96 crore, monetizing its Hyderabad land and boosting investor sentiment as the stock gains over 2% in today’s session.
This company is in the business of manufacturing, laying and joining of pipelines and has also been undertaking infrastructure development programmes by way of execution on a turnkey basis. The combined water supply projects is now in the focus after executing the Agreement for Sale with Ashoka Builders for Rs. 173.96 crores.
With market capitalization of Rs. 2,134 cr, the shares of Indian Hume Pipe Company Limited are currently trading at Rs. 403 per share, increasing 2.5% in today’s market session, making a high of Rs. 406.15, from its previous close of Rs. 396 per share.
News
The Indian Hume Pipe Company Limited has informed both BSE and NSE about entering into an Agreement for Sale for one of its properties. The disclosure pertains to the sale of freehold land located in the Azamabad Industrial Area of Hyderabad, Telangana.
This land, measuring 18,311.57 square yards (15,310.80 square meters), has been held by the company on a leasehold basis since 1931 and was recently converted into freehold land following the Telangana Government’s G.O.Ms.No.19 dated 29th August 2023.
The company has executed the Agreement for Sale with M/s. Ashoka Builders India Private Limited for a total consideration of Rs. 173.96 crores, out of which an advance of Rs. 100 crores has already been received.
The conversion of the land from leasehold to freehold required the company to pay Rs. 107.38 crores towards applicable levies such as stamp duty, transfer duty, registration charges, and mutation fees, culminating in a registered Deed of Sale/Conveyance in its favour. The final Sale Deed with the buyer will be registered in due course, and the company will update the stock exchanges once the registration is completed.
About the company
Indian Hume Pipe Company Ltd is one of India’s oldest infrastructure engineering companies, established in 1926 and known for its expertise in manufacturing and laying pipelines for water supply, irrigation, sewerage, and drainage projects. The company specializes in reinforced cement concrete pipes, prestressed concrete pipes, steel pipes, and related infrastructure solutions.
The company reports a ROCE of 11.9% and a ROE of 9.17%, with a debt-to-equity ratio of 0.36. Its stock P/E stands at 20.0, compared with the industry P/E of 34.9.
The company reported steady year-on-year growth in Q2FY26. Sales rose 3% to Rs. 365 crore compared with Rs. 354 crore in Q2FY25. EBITDA showed a strong improvement of 48%, increasing from Rs. 34.8 crore to Rs. 51.6 crore, reflecting better operating efficiency. Net profit surged by 162%, climbing from Rs. 13.3 crore to Rs. 34.7 crore, while EPS rose by 161%, from Rs. 2.52 to Rs. 6.58.
Written by Manideep Appana
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