Shares of this smallcap company surged 17 percent in Friday’s trading session after reporting an increase in net profits by 188 percent QoQ. The shares have delivered a multibagger return of 136 percent to its shareholders in one year.
With a market capitalization of Rs. 1,678 crores, the shares of Indian Hume Pipe Company Ltd started Friday’s trading session on a higher note at Rs. 303.70 compared to its previous close of Rs. 273.90. During the trading session, the shares hit a high of Rs. 328.65, gaining around 17 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 318 apiece.
Such a positive movement in the share price was observed after the company announced quarterly and financial year-end 31st March 2024 results. Quarterly, the revenue zoomed by 27 percent from Rs. 318.53 crores during the December quarter to Rs.404.28 crores in the March quarter. In addition, the net profits magnified by 188 percent from Rs. 15.14 crores to Rs. 43.66 crores during the same period.
Comparing these metrics on a YoY basis, the revenue decreased by 11 percent from Rs. 454.20 crores during Q4FY23 to Rs. 404.28 crores in Q4FY24. On the other hand, the net profits surged by 173 percent from Rs. 16 crores to Rs. 43.66 crores during the same timeframe.
EBITDA jumped 77.74 percent to Rs. 77.07 crores duirng the quarter as compared with Rs. 43.36 crores posted in the corresponding quarter last year.
As of 12th May 2024, the estimated balance value of the work of the company stands at Rs. 3,698.17 crores, compared to Rs. 3,112.03 crores on 6th May 2023. Additionally, they have secured the position of L1 in a project valued at Rs. 1901.39 crores.
Furthermore, The Board of Directors of the company have recommended a dividend of Rs. 1.50 (75 percent) per equity share of the face value of Rs. 2 each for the financial year ending March 31, 2024, which is subject to the approval of the shareholders.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 8.28 percent and a return on capital employed (RoCE) of 11.19 percent for the period spanning FY22-23.
Headquartered in Mumbai, the Indian Hume Pipe Company was incorporated in 1926. The company is in the business of manufacturing, laying and joining pipelines and has also been undertaking infrastructure development programmes by way of execution on a turnkey basis for the combined water supply projects. The company also manufactures and supplies Concrete Railway Sleepers for Indian Railways.
Written By Vaibhav Patil
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