Indian Hume Pipe Company Reports Positive Q2 Results, Receives 'Hold' Call from MarketsMOJO
Indian Hume Pipe Company, a smallcap construction material company, has reported positive financial results for the quarter ending September 2024. The company's operating cash flow has been the highest in the last three years, contributing to its improved score. However, the interest cost and dividend payouts need improvement. MarketsMojo recommends holding positions in the company's stock.
Indian Hume Pipe Company, a smallcap construction material company, has recently announced its financial results for the quarter ending September 2024. The company has received a 'Hold' call from MarketsMOJO, a leading financial analysis platform.
According to the financial report, Indian Hume Pipe has shown positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 17 to 10 in the last three months.
One of the key factors contributing to this positive performance is the company's high operating cash flow, which has been the highest in the last three years at Rs 213.04 crore. This indicates that the company has generated higher cash revenues from its business operations.
Furthermore, the Profit Before Tax less Other Income (PBT) has also shown a growth of 24.05% year on year, with a positive trend in the near term. Similarly, the Profit After Tax (PAT) has also increased by 28.6% year on year, with a positive trend in the near term.
However, there are some areas that need improvement for Indian Hume Pipe. The interest cost has been the highest in the last five quarters, increasing by 13.12% quarter on quarter. This suggests that the company has taken on more borrowings, which could impact its financial stability.
Moreover, the company's dividend per share (DPS) has been the lowest in the last five years at Rs 1.50. This indicates that the company is distributing lower dividends compared to previous years. Additionally, the Dividend Payout Ratio (DPR) has also been the lowest in the last five years at 10.18%, indicating that the company is distributing a lower proportion of its profits as dividends.
Overall, Indian Hume Pipe Company has shown positive financial performance in the recent quarter, but there are some areas that need attention for the company to maintain its growth trajectory. Investors are advised to hold their positions in the company's stock, as recommended by MarketsMOJO.
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