Synopsis: Infrastructure development company secured a major water supply project in Telangana, strengthening its order book with a government contract, to be executed over two years under a structured funding program.
The shares of this small cap company majorly engaged in the business of manufacturing, laying and joining of pipelines, jumped nearly 9 percent after securing work order from the government of Telangana.
With the market capitalization of Rs. 1,733 Crores, the shares of Indian Hume Pipe Company Ltd reached an intraday high of Rs. 350 per share rising nearly 9 percent from its previous day closing of Rs. 321 per share and is trading at a P/E of 16.5 whereas industry P/E stands at 32.7
What is the NEWS
Indian Hume Pipe Company has received a work order worth Rs. 458.69 crore from the Public Health and Municipal Engineering Department in Telangana. The project focuses on improving the water supply system in Greater Warangal under UIDF funding. It is a domestic contract with a clear execution timeline of 24 months.
The order is structured as a percentage-based contract, and there is no involvement of promoters or related party transactions. This development adds to the company’s existing projects and supports its business visibility over the next two years, while reflecting continued demand for urban infrastructure improvements.
Recently, the company has secured a new order worth Rs. 418 Crores awarded by the Jihe Kathapur Lift Irrigation Division, Maharashtra Krishna Valley Development Corporation (MKVDC) for an irrigation project in Satara, Maharashtra.
About the Company and Financials
The Indian Hume Pipe Co. Ltd. was incorporated in 1926. The Company is in the business of manufacturing, laying and joining of pipelines. The Company has also been undertaking infrastructure development programmes by way of execution on a turnkey basis for combined water supply projects.
The company also manufactures and supplies concrete railway sleepers to Indian Railways, and has built a strong track record in executing large-scale public utility projects with a focus on timely delivery and quality standards.
Year on Year analysis: Revenue from Operations has decreased from Rs. 381 Crores to Rs. 282 Crores, down 26 percent. Operating profit has decreased from Rs. 37 Crores to Rs. 22 Crores, down 40 percent and net profit has increased from Rs. 14 Crores to Rs. 62 Crores, up 343 percent
Quarter on Quarter analysis: Revenue from Operations has decreased from Rs. 365 Crores to Rs. 282 Crores, down 22.7 percent. Operating profit has decreased from Rs. 52 Crores to Rs. 22 Crores, down 58 percent and net profit has increased from Rs. 35 Crores to Rs. 62 Crores, up 77 percent.
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