Indian Hume Pipe Company Receives 'Hold' Rating

Indian Hume Pipe Company, a smallcap construction material company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the stock has shown a bullish trend and has improved technically since December 18, 2023.
The stock is currently trading at a discount compared to its historical valuations and has a ROCE of 9.3, making it an attractive investment option. However, the company's profits have fallen by -23.5% in the past year, despite generating a return of 69.96%.

While the stock has outperformed the market (BSE 500) in the last year, it has shown weak long-term fundamental strength with a -3.35% CAGR growth in operating profits over the last 5 years. Additionally, the company has a high debt to EBITDA ratio of 3.60 times, indicating a low ability to service debt.

In the latest financial results for September 2023, Indian Hume Pipe Company has shown flat results with the lowest operating cash flow and dividend per share. Furthermore, 30.69% of the promoter shares are pledged, which could put additional downward pressure on the stock prices in falling markets.

Overall, while the stock may be a good option for short-term gains, investors should carefully consider the company's weak long-term fundamentals and high promoter pledged shares before making any investment decisions.