NSEI:INDIANHUME

Stock Analysis Report

Executive Summary

The Indian Hume Pipe Company Limited engages in the construction contract activities in India.

Rewards

Earnings are forecast to grow 25.15% per year

Pays a reliable dividend of 1.72%

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Highly volatile share price over past 3 months



Snowflake Analysis

Reasonable growth potential average dividend payer.


Similar Companies

Share Price & News

How has Indian Hume Pipe's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: INDIANHUME's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.7%

INDIANHUME

-3.3%

IN Construction

-1.3%

IN Market


1 Year Return

-25.5%

INDIANHUME

-8.8%

IN Construction

5.2%

IN Market

Return vs Industry: INDIANHUME underperformed the Indian Construction industry which returned -8.8% over the past year.

Return vs Market: INDIANHUME underperformed the Indian Market which returned 5.2% over the past year.


Shareholder returns

INDIANHUMEIndustryMarket
7 Day-3.7%-3.3%-1.3%
30 Day-16.2%-9.0%-1.2%
90 Day-15.3%-3.3%8.3%
1 Year-24.6%-25.5%-7.6%-8.8%7.2%5.2%
3 Year-45.9%-47.6%21.8%17.5%30.3%23.4%
5 Year40.7%33.8%22.6%15.8%39.3%26.8%

Price Volatility Vs. Market

How volatile is Indian Hume Pipe's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Indian Hume Pipe undervalued compared to its fair value and its price relative to the market?

13.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: INDIANHUME (₹209.65) is trading above our estimate of fair value (₹35.5)

Significantly Below Fair Value: INDIANHUME is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: INDIANHUME is poor value based on its PE Ratio (13.6x) compared to the Construction industry average (11x).

PE vs Market: INDIANHUME is poor value based on its PE Ratio (13.6x) compared to the Indian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: INDIANHUME is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: INDIANHUME is overvalued based on its PB Ratio (1.9x) compared to the IN Construction industry average (0.7x).


Next Steps

Future Growth

How is Indian Hume Pipe forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

25.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INDIANHUME's forecast earnings growth (25.1% per year) is above the savings rate (6.5%).

Earnings vs Market: INDIANHUME's earnings (25.1% per year) are forecast to grow faster than the Indian market (19.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: INDIANHUME's revenue (12.3% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: INDIANHUME's revenue (12.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if INDIANHUME's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Indian Hume Pipe performed over the past 5 years?

18.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INDIANHUME has a high level of non-cash earnings.

Growing Profit Margin: INDIANHUME's current net profit margins (4.3%) are lower than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: INDIANHUME's earnings have grown by 18.7% per year over the past 5 years.

Accelerating Growth: INDIANHUME's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: INDIANHUME had negative earnings growth (-11.8%) over the past year, making it difficult to compare to the Construction industry average (5.7%).


Return on Equity

High ROE: INDIANHUME's Return on Equity (14.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Indian Hume Pipe's financial position?


Financial Position Analysis

Short Term Liabilities: INDIANHUME's short term assets (₹17.3B) exceed its short term liabilities (₹14.1B).

Long Term Liabilities: INDIANHUME's short term assets (₹17.3B) exceed its long term liabilities (₹1.2B).


Debt to Equity History and Analysis

Debt Level: INDIANHUME's debt to equity ratio (131%) is considered high.

Reducing Debt: INDIANHUME's debt to equity ratio has increased from 122.7% to 131% over the past 5 years.

Debt Coverage: INDIANHUME's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: INDIANHUME's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet

Inventory Level: INDIANHUME has a low level of unsold assets or inventory.

Debt Coverage by Assets: INDIANHUME's debt is covered by short term assets (assets are 2.5x debt).


Next Steps

Dividend

What is Indian Hume Pipe's current dividend yield, its reliability and sustainability?

1.72%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%0.6%markettop25%2.5%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: INDIANHUME's dividend (1.72%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: INDIANHUME's dividend (1.72%) is low compared to the top 25% of dividend payers in the Indian market (2.48%).


Stability and Growth of Payments

Stable Dividend: INDIANHUME's dividends per share have been stable in the past 10 years.

Growing Dividend: INDIANHUME's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.4%), INDIANHUME's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Indian Hume Pipe's salary, the management and board of directors tenure and is there insider trading?

11.7yrs

Average management tenure


CEO

Rajas Doshi (68yo)

25.7yrs

Tenure

₹62,383,610

Compensation

Mr. Rajas Ratanchand Doshi has been the Chairman and Managing Director of Indian Hume Pipe Co. Ltd. since April 14, 1994. Mr. Doshi serves as the Chairman of IHP Finvest Ltd. He served as an Independent Di ...


CEO Compensation Analysis

Compensation vs Market: Rajas's total compensation ($USD872.62K) is above average for companies of similar size in the Indian market ($USD33.57K).

Compensation vs Earnings: Rajas's compensation has been consistent with company performance over the past year.


Management Age and Tenure

11.7yrs

Average Tenure

Experienced Management: INDIANHUME's management team is seasoned and experienced (11.7 years average tenure).


Board Age and Tenure

22.9yrs

Average Tenure

67yo

Average Age

Experienced Board: INDIANHUME's board of directors are seasoned and experienced ( 22.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Subhash Mandke

    Company Secretary

    • Tenure: 11.7yrs
    • Compensation: ₹3.40m
  • Rajas Doshi (68yo)

    Chairman & MD

    • Tenure: 25.7yrs
    • Compensation: ₹62.38m
  • Mayur Doshi (40yo)

    VP & Executive Director

    • Tenure: 7.6yrs
    • Compensation: ₹35.00m
  • M. Rajadhyaksha

    Chief Financial Officer

    • Tenure: 5.6yrs
    • Compensation: ₹4.02m
  • A. Joshi

    Chief Personnel Manager

    • Tenure: 0yrs
  • M. Gawade

    Chief Internal Auditor

    • Tenure: 4.4yrs

Board Members

  • Rajas Doshi (68yo)

    Chairman & MD

    • Tenure: 25.7yrs
    • Compensation: ₹62.38m
  • Vijaykumar Jatia (62yo)

    Independent Non-Executive Director

    • Tenure: 18.9yrs
    • Compensation: ₹1.46m
  • Rameshwar Sarda (66yo)

    Independent Non-Executive Director

    • Tenure: 23.9yrs
    • Compensation: ₹1.64m
  • Anima Kapadia (68yo)

    Non-Executive Non-Independent Director

    • Tenure: 18.9yrs
    • Compensation: ₹1.16m
  • Jyoti Doshi (65yo)

    Non-Executive Non-Independent Director

    • Tenure: 23.9yrs
    • Compensation: ₹1.16m
  • Rajendra Gandhi (72yo)

    Independent Non-Executive Director

    • Tenure: 23.9yrs
    • Compensation: ₹1.58m
  • N. Balakrishnan (81yo)

    Independent Director

    • Tenure: 21.9yrs
    • Compensation: ₹1.16m
  • Mayur Doshi (40yo)

    VP & Executive Director

    • Tenure: 7.6yrs
    • Compensation: ₹35.00m

Company Information

The Indian Hume Pipe Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Indian Hume Pipe Company Limited
  • Ticker: INDIANHUME
  • Exchange: NSEI
  • Founded: 1926
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: ₹10.341b
  • Shares outstanding: 48.45m
  • Website: https://www.indianhumepipe.com

Number of Employees


Location

  • The Indian Hume Pipe Company Limited
  • Construction House
  • 2nd Floor
  • Mumbai
  • Maharashtra
  • 400001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
504741BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 1995
INDIANHUMENSEI (National Stock Exchange of India)YesEquity SharesININRSep 1995

Biography

The Indian Hume Pipe Company Limited engages in the construction contract activities in India. It engages in manufacturing, laying, and jointing pipelines. The company undertakes water supply projects for  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 12:49
End of Day Share Price2019/12/05 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.