Heavy buying: This multibagger small-cap company bags new orders worth Rs 639.16 crore from Odisha!

Shares of the company gained more than 60 per cent in the last one year.

Indian Hume Pipe Company Limited informed in the exchange filing that the company has bagged an order worth Rs 639.16 crore from Rural Water Supply & Sanitation, Odisha. The order involves the execution of the Rural Piped Water Supply Project pertaining to six blocks of Puri District, Odisha. Owing to the positive news the stock gained over 5 per cent on Friday.

The Indian Hume Pipe Company Limited was incorporated in 1926. The company is engaged in the business of manufacturing, laying, and joining pipelines. The company has also been undertaking infrastructure development programs by way of execution on a turnkey basis for the combined water supply projects. The company also manufactures and supplies concrete railway sleepers to the Indian Railways. With increased focus on EPC contract business, the pipe manufacturing segment contributes less than 10 per cent to the total revenue of the company.

The company posted weak Quarterly Results in Q1FY24. The revenue of the company stood at Rs 347.00 crore which decreased by 3.65 per cent YoY. The operating profit of the company stood at Rs 31.70 crore, while the PAT of the company stood at Rs 8.51 crore, which decreased by 58.86 per cent YoY.

Indian Hume Pipe Company Limited has also delivered multibagger returns to its shareholders in the last six months. During this period, the company’s share price jumped from Rs 143.10 on February 20, 2023, to Rs 285.90 on August 18, 2023, an increase of about 100 per cent in six months holding period.

Investors should keep a close eye on this stock.

Disclaimer: The article is for informational purposes only and not investment advice.