Indian Hume Pipe Company Ltd.
This company is 90 year old and was founded by Walchand Hirachand who has founded many famous companies like HAL, HCC, Premier automobiles etc. The company is engaged in production of concrete pipes, steel pipes, railway sleepers etc. Pipes are useful in drainage projects, hydro electric projects, irrigation projects and other industrial projects. It is going to benefit greatly from government spend on road, power, irrigation projects. Financially the company is in good shape. Debt to equity is below 1 and company is trying to reduce its debt. It has shown very good sales and profit growth in past years. The stock has fallen recently from 594.7 and currently trading around 440. The main reason for the fall may be the poor quarterly results in sept 2017 quarter. However, I feel that the results will be good in coming quarters given their area of business and government spending for infrastructure. Technically, the stock has formed bullish divergence with respect to money flow index...