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

• Market Cap: ₹21.48B
• Dividend Yield: 1%
• Average Volume (3M): 1.80K
• Price to Earnings (P/E): 3.8
• Beta (1Y): 1.86
• Revenue Growth: 0.25%
• EPS Growth: 452.41%
• Country: IN
• Employees: 1,088
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Engineering & Construction
• EPS (TTM): 6.60
• 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: 68 Neutral
• Price Target: ₹460.00 ▲(8.72% Upside)

Indian Hume Pipe Co. Ltd. has a strong financial performance with high profitability and efficient cost management, contributing significantly to the overall score. The stock's valuation is attractive, with a low P/E ratio suggesting potential undervaluation. However, technical analysis indicates mixed signals, with some bearish momentum. The absence of earnings call data and corporate events limits the analysis to these factors.

Positive Factors

High Profitability

Sustained high net and gross margins indicate durable pricing power and efficient cost management across projects. This margin strength supports reinvestment in capacity, cushioning profit cycles from lumpiness in orders and enabling higher returns on equity over the medium term.

Low Financial Leverage

Low leverage provides financial flexibility for capital expenditure, bidding on large infrastructure contracts, and absorbing project delays. A stronger equity base reduces refinancing risk and supports long-term investment without excessive interest burden, improving resilience.

Established Infrastructure Market Position

Long operating history and specialization in essential water and drainage products create durable competitive advantages: established client relationships, repeat government tenders, and trusted quality standards. These factors support stable order pipelines and long-term market share.

Negative Factors

Declining Free Cash Flow

A material drop in free cash flow reduces internal funding for capex, working capital and shareholder returns. Poor cash conversion heightens reliance on external financing for growth, limits buffer for project overruns, and raises vulnerability to timing mismatches in receivables.

Revenue Volatility

Sharp year-to-year revenue swings reflect dependency on lumpy tender wins and project cycles. Such volatility undermines earnings predictability, strains capacity utilization planning, and can magnify margin pressure during down cycles, complicating multi-year budgeting and investment decisions.

Dependence on Government Tenders

Heavy reliance on public sector contracts creates concentration and timing risk: budget cycles, competitive bidding and payment delays can compress margins and cash flows. This structural exposure reduces revenue visibility and increases sensitivity to policy or funding shifts.

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

Indian Hume Pipe Co. Ltd. generates revenue through the manufacturing and sale of hume pipes, concrete pipes, and related products. The company's key revenue streams include contracts with municipal and state governments for water supply, sewage, and irrigation projects. Additionally, Indian Hume Pipe Co. Ltd. caters to private sector clients in the construction and infrastructure sectors. The company also engages in strategic partnerships and collaborations to enhance its market reach and product offerings. The revenue is significantly influenced by government infrastructure spending, urbanization trends, and the company's ability to secure large-scale projects.

Indian Hume Pipe Co. Ltd. Financial Statement Overview

Summary

Indian Hume Pipe Co. Ltd. demonstrates strong financial health with high profitability and efficient cost management, as evidenced by its robust profit margins and return on equity. The balance sheet reflects a solid equity base with low leverage, although cash flow performance is somewhat inconsistent with recent declines in free cash flow. The company shows potential for growth, but revenue volatility and cash flow fluctuations warrant attention for future financial stability.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.35B	14.91B	13.89B	15.43B	15.16B	12.38B
Gross Profit	1.97B	3.42B	3.02B	2.56B	2.63B	2.23B
EBITDA	7.26B	7.40B	1.77B	1.49B	1.48B	1.44B
Net Income	5.49B	5.58B	776.28M	557.03M	577.90M	420.01M
Balance Sheet
Total Assets	0.00	27.36B	20.81B	21.81B	19.73B	18.94B
Cash, Cash Equivalents and Short-Term Investments	5.66B	6.19B	725.32M	148.41M	99.46M	85.28M
Total Debt	0.00	4.58B	5.11B	6.33B	5.87B	5.60B
Total Liabilities	-13.77B	13.60B	12.52B	14.86B	13.23B	12.91B
Stockholders Equity	13.77B	13.77B	8.29B	6.95B	6.50B	6.03B
Cash Flow
Free Cash Flow	0.00	1.49B	2.08B	172.11M	513.23M	1.80B
Operating Cash Flow	0.00	2.04B	2.13B	194.35M	558.88M	1.85B
Investing Cash Flow	0.00	-669.22M	-678.50M	114.12M	-147.23M	-93.96M
Financing Cash Flow	0.00	-1.08B	-372.82M	-622.84M	-925.87M	-1.71B

Indian Hume Pipe Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 423.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 423.1 is above the 20-day moving average (MA) of 412.01, above the 50-day MA of 395.67, and above the 200-day MA of 395.46, indicating a neutral trend. The MACD of 5.21 indicates Positive momentum. The RSI at 49.78 is Neutral, neither overbought nor oversold. The STOCH value of 50.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	74 Outperform	₹26.36B	14.15	―	―	10.26%	46.49%
DCMSRIND	69 Neutral	₹6.40B	7.00	―	1.19%	-3.72%	-50.02%
INDIANHUME	68 Neutral	₹21.48B	3.77	―	1.00%	0.25%	452.41%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HITECH	61 Neutral	₹17.71B	21.93	―	0.03%	9.05%	-4.65%
RAMASTEEL	55 Neutral	₹14.32B	71.37	―	―	14.51%	-30.02%
SAGCEM	48 Neutral	₹26.47B	-15.86	―	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.

Indian Hume Pipe Co. Ltd. Reports Strong Financial Performance for Q2 2025

Indian Hume Pipe Co. Ltd. has released its unaudited financial results for the second quarter and first half of the fiscal year ending September 30, 2025. The company reported a significant increase in total income and net profit compared to the same period last year, indicating strong operational performance. The results were reviewed and approved by the Audit Committee and Board of Directors, reflecting the company’s solid financial standing and positive outlook for stakeholders.