Indian Hume Pipe Co. Ltd. (INDIANHUME) AI Stock Analysis

• Market Cap: ₹17.02B
• Dividend Yield: 1%
• Average Volume (3M): 1.80K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 1.71
• Revenue Growth: 0.25%
• EPS Growth: 452.41%
• Country: IN
• Employees: 1,088
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Engineering & Construction
• EPS (TTM): 11.70
• Shares Outstanding: 52,681,770
• 10 Day Avg. Volume: 1,942
• 30 Day Avg. Volume: 1,804
• PEG Ratio: <0.01
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 1.30
• P/FCF Ratio: 12.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ₹376.00 ▼(-11.13% Downside)
• Action: Downgraded Date: 03/12/26
• Date: Action: Downgraded 03/12/26

The score is driven primarily by strong financial profitability and a low-leverage balance sheet, plus an attractive low P/E valuation. These positives are offset by weak technicals (price below key moving averages and negative MACD) and softer cash flow quality (declining free cash flow and low operating cash flow relative to net income).

Positive Factors

High profitability and ROE

Sustained high net margin and a 40.5% ROE indicate durable operating efficiency and strong return on invested equity. This level of profitability supports reinvestment, cushions cyclicality in infrastructure spending, and enables consistent funding for growth or shareholder distributions over months.

Low leverage and healthy equity base

A debt-to-equity of 0.33 and ~50% equity ratio provide structural financial flexibility for bidding and executing capital-intensive projects. Low leverage reduces default and refinancing risk, enabling the company to sustain operations through project payment lags and pursue selective growth without stressing the balance sheet.

Diversified contract and product business model

Having both EPC/contract execution and product manufacturing creates multiple, complementary revenue streams. Product sales can stabilise cash flows when project execution slows, while contract work provides margin uplift—this structural mix supports resilience across infrastructure cycles over months.

Negative Factors

Revenue volatility across years

Marked year-to-year swings in revenue reduce predictability for backlog, capacity planning and margin sustainability. For an infrastructure player, such volatility complicates bidding, workforce deployment and cash planning, increasing execution risk over the coming 2–6 months.

Weaker cash conversion and falling FCF

Low OCF/Net Income and sharply negative FCF growth indicate earnings are not fully converting to cash. Over time this weakens the firm's ability to self-fund capex, absorb project delays, or return capital, making it more sensitive to working capital swings and external financing needs.

Payment and working-capital risk from milestone contracts

Dependence on milestone-linked public and contract receipts creates structural working-capital exposure; delayed certifications or variations can stall cash inflows. Even with low leverage, persistent collection lags can pressure liquidity and slow project turnover across months.

Indian Hume Pipe Co. Ltd. Business Overview & Revenue Model

Company Description

The Indian Hume Pipe Company Limited engages in the construction contract activities in India. It is involved in manufacturing, laying, and jointing pipelines business. The company undertakes water supply projects for the supply of drinking and irrigation water; and sewer and drainage pipelines for cities and towns, as well as provides penstock pipes for hydroelectric projects. It also offers prestressed concrete pipes, prestressed concrete cylinder pipes, bar wrapped steel cylinder pipes, steel pipes, reinforced cement concrete pipes, and penstock pipes; and manufactures and supplies prestressed concrete monoblock sleepers for Railways. In addition, the company undertakes various other projects, such as tunnel lining; and head works, including pumping machinery, treatment plants, overhead tanks, and other civil construction projects. Further, it is involved in the development of land. The company was incorporated in 1926 and is headquartered in Mumbai, India. The Indian Hume Pipe Company Limited is a subsidiary of IHP Finvest Ltd.

How the Company Makes Money

The company primarily earns revenue through (1) contract execution for water, wastewater, irrigation, and related civil infrastructure projects and (2) manufacturing and supply of infrastructure products used in such projects. Under the contract business, revenue is generated by performing engineering and construction activities for public-sector and other customers, with receipts typically linked to milestones/progress measurements and final completion, including associated variation orders and other contract-defined payments. Under the products business, revenue is generated from selling manufactured items (commonly used in water conveyance and drainage networks) either bundled with the company’s own projects or sold to external customers for their infrastructure works. null

Indian Hume Pipe Co. Ltd. Financial Statement Overview

Summary

Strong profitability (Net Profit Margin 37.43%, ROE 40.54%) and low leverage (Debt-to-Equity 0.33) support a solid score, but revenue volatility (down 10.00% in 2024 before +7.40% in 2025) and weaker cash conversion (Operating Cash Flow to Net Income 0.37, Free Cash Flow growth -28.41%) temper the outlook.

Income Statement

The company's income statement shows a commendable performance with an increase in both gross and net profit margins. The Gross Profit Margin for 2025 is 22.95%, and the Net Profit Margin is an impressive 37.43%, suggesting efficient cost management and profitability. The EBIT Margin for 2025 is 11.50%, and the EBITDA Margin is 49.65%, both indicating strong operational performance. However, revenue has seen some fluctuations over the years. While revenue grew by 7.40% from 2024 to 2025, it previously declined by 10.00% from 2023 to 2024, indicating some revenue volatility.

Balance Sheet

The balance sheet depicts a stable financial position with a Debt-to-Equity Ratio of 0.33 for 2025, indicating a low level of leverage. The Return on Equity (ROE) is impressive at 40.54%, showcasing strong profitability relative to equity. The Equity Ratio stands at 50.31%, reflecting a healthy proportion of equity financing. However, the company's Total Assets have been increasing, which may indicate either growth or increased financial commitments.

Cash Flow

The cash flow statement shows a mixed but generally positive outlook. The company has achieved a Free Cash Flow Growth Rate of -28.41% from 2024 to 2025, indicating a decrease in free cash flow. However, the Operating Cash Flow to Net Income Ratio is 0.37 for 2025, which suggests operating cash generation is lower than net income. Despite this, the Free Cash Flow to Net Income Ratio is 0.27, indicating some efficiency in converting income to free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.45B	14.91B	13.89B	15.43B	15.16B	12.38B
Gross Profit	1.85B	3.42B	3.02B	2.56B	2.63B	2.23B
EBITDA	7.52B	7.40B	1.77B	1.49B	1.48B	1.44B
Net Income	5.70B	5.58B	776.28M	557.03M	577.90M	420.01M
Balance Sheet
Total Assets	27.50B	27.36B	20.81B	21.81B	19.73B	18.94B
Cash, Cash Equivalents and Short-Term Investments	6.16B	6.19B	725.32M	148.41M	99.46M	85.28M
Total Debt	5.01B	4.58B	5.11B	6.33B	5.87B	5.60B
Total Liabilities	13.50B	13.60B	12.52B	14.86B	13.23B	12.91B
Stockholders Equity	14.00B	13.77B	8.29B	6.95B	6.50B	6.03B
Cash Flow
Free Cash Flow	-150.00M	1.49B	2.08B	172.11M	513.23M	1.80B
Operating Cash Flow	-73.44M	2.04B	2.13B	194.35M	558.88M	1.85B
Investing Cash Flow	67.21M	-669.22M	-678.50M	114.12M	-147.23M	-93.96M
Financing Cash Flow	-315.17M	-1.08B	-372.82M	-622.84M	-925.87M	-1.71B

Indian Hume Pipe Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 423.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INDIANHUME, the sentiment is Negative. The current price of 423.1 is above the 20-day moving average (MA) of 329.53, above the 50-day MA of 363.72, and above the 200-day MA of 387.86, indicating a bearish trend. The MACD of -12.66 indicates Negative momentum. The RSI at 41.99 is Neutral, neither overbought nor oversold. The STOCH value of 31.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:INDIANHUME.

Indian Hume Pipe Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MANINDS	78 Outperform	₹27.97B	13.17	―	―	10.26%	46.49%
DCMSRIND	66 Neutral	₹4.62B	11.08	―	1.19%	-3.72%	-50.02%
HITECH	66 Neutral	₹15.33B	27.40	―	0.03%	9.05%	-4.65%
INDIANHUME	64 Neutral	₹17.02B	8.72	―	1.00%	0.25%	452.41%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
RAMASTEEL	51 Neutral	₹8.85B	176.56	―	―	14.51%	-30.02%
SAGCEM	48 Neutral	₹21.82B	-12.17	―	0.33%	3.34%	-112.79%

Indian Hume Pipe Co. Ltd. Corporate Events

Indian Hume Pipe Monetises Hyderabad Land Parcel for Rs 173.96 Crore

Indian Hume Pipe Co. Ltd. has executed and registered a sale deed for its freehold land at Plot No. 4, Azamabad Industrial Area, Hyderabad, Telangana, measuring about 18,311.57 square yards (15,310.80 sq. mtrs.), for a total consideration of Rs 173.96 crore, with the entire amount received from purchaser ASBL Private Limited (formerly Ashoka Builders India Private Limited). The land, held on lease since 1931 and converted to freehold following a 2023 Telangana government order for existing lessees, does not qualify as an ‘undertaking’ under Section 180(1)(a) of the Companies Act, 2013, meaning the transaction falls outside the ambit of Regulation 37A and is neither a related-party nor slump sale; the monetisation of this non-core real estate is therefore expected to strengthen the company’s balance sheet without triggering additional corporate or shareholder approval requirements.

Indian Hume Pipe Sells Hyderabad Land Asset to ASBL for ₹173.96 Crore

The Indian Hume Pipe Co. Ltd. has completed the sale of its Hyderabad land asset, measuring about 18,312 square yards (15,311 square metres), to ASBL Private Limited for a total consideration of INR 173.96 crore. The property, held on lease for 94 years before IHP obtained ownership earlier this year, was sold through a competitive bidding process, underscoring the monetisation of a long-held non-core asset and potentially strengthening the company’s balance sheet, with global real estate consultant JLL advising on the transaction and law firm Cyril Amarchand Mangaldas providing legal counsel.