Why is Indian Hume Pipe Company Ltd ?
1
Weak Long Term Fundamental Strength with a 5.43% CAGR growth in Operating Profits over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.93 times
- The company has been able to generate a Return on Equity (avg) of 7.98% signifying low profitability per unit of shareholders funds
2
30.69% of Promoter Shares are Pledged
- In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Indian Hume Pipe for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Indian Hume Pipe
-7.63%
-0.16
46.61%
Sensex
4.83%
0.41
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
2.25%
EBIT Growth (5y)
5.43%
EBIT to Interest (avg)
2.35
Debt to EBITDA (avg)
3.56
Net Debt to Equity (avg)
-0.12
Sales to Capital Employed (avg)
1.18
Tax Ratio
15.95%
Dividend Payout Ratio
5.48%
Pledged Shares
30.69%
Institutional Holding
2.62%
ROCE (avg)
12.61%
ROE (avg)
7.98%
Valuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
27
Price to Book Value
1.54
EV to EBIT
12.15
EV to EBITDA
10.94
EV to Capital Employed
1.61
EV to Sales
1.35
PEG Ratio
20.34
Dividend Yield
1.44%
ROCE (Latest)
14.11%
ROE (Latest)
7.56%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Sideways
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
12What is working for the Company
PBT LESS OI(Q)
At Rs 34.48 cr has Grown at 123.61%
PAT(Q)
At Rs 34.69 cr has Grown at 161.6%
OPERATING PROFIT TO INTEREST(Q)
Highest at 4.24 times
DPS(Y)
Highest at Rs 5.80
-1What is not working for the Company
DPR(Y)
Lowest at 5.48%
Loading Valuation Snapshot...
Here's what is working for Indian Hume Pipe
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 34.48 cr has Grown at 123.61%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 34.69 cr has Grown at 161.6%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 4.24 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Profit After Tax (PAT) - Quarterly
Highest at Rs 34.69 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Dividend per Share (DPS) - Annually
Highest at Rs 5.80
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (Rs)
Here's what is not working for Indian Hume Pipe
Dividend Payout Ratio (DPR) - Annually
Lowest at 5.48%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)






