Indian Hume Pipe stock may give good returns in nine months

Jal Jeevan Mission is the project of the government of India to provide every rural household with drinking water supply in adequate quantity of prescribed quality on a regular and long-term basis at affordable service delivery charges ultimately leading to an improvement in the living standards of rural communities of our country. The Jal Jeevan Mission is to assist, empower and facilitate States and UTs in planning of participatory and creation of water supply infrastructure for ensuring potable drinking water security on long-term basis to every rural household and public institution, such as GP building, School, Anganwadi centre, Health centre, wellness centres, etc. The Indian Hume Pipe Co Ltd had obtained a work order in June 2022 of around Rs 110 crore from the public health engineering department Ajmer, Rajasthan, for a cluster water supply project in the Chambal Bhilwara area under the Jal Jeevan Mission to be completed in 15 months and with an operation and maintenance tenure of 10 years. Meanwhile, the company has this month received a Letter of Acceptance for a project worth of Rs 194 crore from the Maharashtra Jeevan Pradhikaran division under the Jal Jeevan Mission Project for the Jalgaon Jamod 150 villages Regional Rural Water Supply Scheme in the Buldhana district of Maharashtra. The project is to be completed within 24 months with a trail run for 12 months after the completion of the project. Indian Hume Pipe Co is actively involved in building the nation’s infrastructure in various sectors. The company has posted decent quarterly results for June 2022 and is expected to come out with good financial results for the current quarter. The Indian Hume Pipe stock currently quoting at Rs 168 on the bourses is an excellent buy for a price appreciation target of Rs 205 in the next nine months’ time frame.
Rajiv Kapoor is a share broker, certified mutual fund expert and MDRT insurance agent.