INDIAN HUME PIPE CO-BUY

Indian Hume Pipe Co is engaged in India's infrastructure development specifically in the field of Water infrastructure.With an increasing population and development of all infrastructure the area of water management is set to grow at a rapid clip in the years to come.The company makes custom designed pipes for water industry,irrigation,sanitation,sewage system and solid waste managment system.There is a huge untapped potential in terms of water management both at urban and rural areas and given that water is already scare good efficient managment of th same will only come to the fore in years to come.Public-Private partnerships in these areas will provide a huge filip to this business.

For the current year 2006-07 the company is expected to record a sales turnover of Rs.360 crores and a net profit of Rs.19 crores which gives an Earnings Per share of Rs.40.At the current price of Rs.380 the P/E works out to close to 10.The equity of the company is Rs.4.8 Crores.Excellent Long term pick at cheap valuations.